DoD awards $14M Oshkosh Defense contract for truck trailers, with delivery extending into 2027

Contract Overview

Contract Amount: $14,000,651 ($14.0M)

Contractor: Oshkosh Defense LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-12

End Date: 2027-03-31

Contract Duration: 474 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: N/A

Place of Performance

Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902

State: Wisconsin Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to OSHKOSH DEFENSE LLC for work described as: N/A Key points: 1. Contract awarded to Oshkosh Defense LLC, a significant player in military vehicle manufacturing. 2. The contract is for truck trailers, falling under the Truck Trailer Manufacturing NAICS code. 3. Delivery orders are expected to continue through March 2027, indicating a multi-year need. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. This award represents a portion of the Department of the Army's broader equipment procurement strategy. 6. The duration of 474 days suggests a substantial quantity or complex integration requirements for the trailers.

Value Assessment

Rating: good

The contract value of $14,006,50.56 for truck trailers appears reasonable given the contractor's specialization and the firm fixed-price nature of the award. Benchmarking against similar large-scale military vehicle procurements suggests that pricing is likely competitive, especially considering the full and open competition. The extended delivery schedule into 2027 indicates a sustained demand, and the fixed-price structure aims to provide cost certainty for the Department of the Army.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best value. The use of full and open competition indicates that the Army sought a wide range of potential suppliers.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified vendors, ensuring that defense funds are used efficiently.

Public Impact

The Department of the Army is the primary beneficiary, receiving essential logistical support equipment. The contract will deliver specialized truck trailers crucial for military operations and supply chain management. The geographic impact is likely national, supporting Army bases and deployment readiness across the United States. Workforce implications may include job creation or maintenance at Oshkosh Defense facilities and their supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial fixed price does not account for unforeseen material cost increases.
Dependence on a single contractor, Oshkosh Defense LLC, for this specific trailer requirement.
Delivery delays could impact Army operational readiness if trailers are not supplied on schedule.

Positive Signals

Award to a known, experienced defense contractor with a strong track record in vehicle manufacturing.
Firm Fixed Price contract structure provides cost certainty and limits the government's financial exposure.
Full and open competition suggests a robust selection process and potential for competitive pricing.

Sector Analysis

The truck trailer manufacturing sector is a critical component of the broader industrial base supporting defense logistics. This contract falls within the heavy vehicle manufacturing segment, where companies like Oshkosh Defense are established leaders. The market is characterized by high barriers to entry due to specialized engineering, manufacturing capabilities, and stringent quality requirements. Comparable spending benchmarks in military vehicle procurement often involve significant dollar values due to the scale and complexity of the equipment required.

Small Business Impact

The data indicates that small business participation (sb: false) was not a primary set-aside criterion for this specific contract. While Oshkosh Defense LLC is a large business, there may be opportunities for small businesses to participate as subcontractors within Oshkosh's supply chain. The absence of a specific small business set-aside suggests that the primary focus was on obtaining the best technical solution and price through full and open competition.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Wheeled Vehicles
Military Logistics Support Equipment
Heavy Equipment Procurement
Department of Defense Supply Chain Management

Risk Flags

Potential for delivery delays impacting operational readiness.
Reliance on a single contractor for a critical supply need.
Ensuring adherence to stringent military specifications and performance standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to OSHKOSH DEFENSE LLC. N/A

Who is the contractor on this award?

The obligated recipient is OSHKOSH DEFENSE LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2025-12-12. End: 2027-03-31.

What is Oshkosh Defense LLC's track record with similar military trailer contracts?

Oshkosh Defense LLC has a well-established track record in manufacturing military vehicles, including trailers and heavy equipment. They are known for producing robust and durable platforms designed for demanding operational environments. While specific details on prior trailer contracts of this exact nature are not provided in the summary data, their broader experience with the U.S. military, particularly with the Family of Heavy Tactical Vehicles (FHTV) and Joint Light Tactical Vehicles (JLTV), suggests a strong capability to meet the requirements. Their history includes numerous large-scale awards from the Department of Defense, indicating a consistent ability to deliver complex military hardware.

How does the $14 million value compare to similar truck trailer procurements for the military?

The $14,006,50.56 contract value for truck trailers needs context regarding the quantity, specifications, and duration. However, for military-grade trailers designed for tactical use, this amount is within a reasonable range, especially considering it's for a firm fixed-price award potentially covering multiple units and a significant delivery period extending into 2027. Large defense contracts often run into tens or hundreds of millions, but this specific award focuses on trailers. Benchmarking against historical awards for similar tactical trailers suggests that Oshkosh Defense's pricing, under full and open competition, is likely competitive. Without more granular data on unit count and specifications, a precise value comparison is difficult, but the amount does not appear exceptionally high for specialized military equipment.

What are the primary risks associated with this contract for the Department of the Army?

The primary risks for the Department of the Army in this contract include potential delivery delays, which could impact operational readiness, especially given the delivery timeline extending to March 2027. Another risk is the possibility of unforeseen cost increases impacting the contractor, which, while mitigated by the firm fixed-price structure, could lead to pressure for contract modifications or impact future pricing if not managed effectively by Oshkosh Defense. Ensuring the trailers meet stringent military specifications and performance requirements throughout their lifecycle is also a continuous risk. Finally, reliance on a single awardee for this specific requirement, even if a capable one, presents a risk if the contractor faces significant production issues or financial instability.

How effective is the 'full and open competition' strategy in ensuring value for this type of defense procurement?

The 'full and open competition' strategy is generally highly effective in ensuring value for defense procurements like this one. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This approach drives down costs as contractors vie for the award. For truck trailers, where multiple manufacturers might exist, this method ensures the Army can compare technical capabilities and pricing across a broad market. The effectiveness is further enhanced when clear performance requirements and evaluation criteria are established, allowing the government to select the best overall value, not just the lowest price.

What are the historical spending patterns for truck trailers within the Department of the Army?

Historical spending patterns for truck trailers within the Department of the Army typically involve a mix of large, multi-year contracts for standardized platforms and smaller, specialized procurements. Spending is often driven by fleet modernization efforts, operational tempo, and the need to replace aging equipment. The Army procures various types of trailers, from basic cargo trailers to highly specialized units for transporting equipment like generators, communication systems, or even specific weapon platforms. Annual spending can fluctuate significantly based on budget allocations, strategic priorities, and the lifecycle of existing equipment. Contracts awarded under full and open competition, like this one, are common for ensuring cost-effectiveness in these recurring needs.

Industry Classification

NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing

Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Oshkosh Corporation

Address: 2307 OREGON ST, OSHKOSH, WI, 54902

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,000,651

Exercised Options: $14,000,651

Current Obligation: $14,000,651

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV18D0010

IDV Type: IDC

Timeline