Army awards Oshkosh Defense $53.6M for 90 HEMTT trucks under FHTV contract
Contract Overview
Contract Amount: $53,584,830 ($53.6M)
Contractor: Oshkosh Defense LLC
Awarding Agency: Department of Defense
Start Date: 2025-12-16
End Date: 2027-06-30
Contract Duration: 561 days
Daily Burn Rate: $95.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: FAMILY OF HEAVY TACTICAL VEHICLES (FHTV) V 5 YEAR FIXED PRICE W/ ECONOMIC PRICE ADJUSTMENT (FPEPA) REQUIREMENTS CONTRACT W/ CURVE PRICING. THIS IS A DELIVERY ORDER FOR 90 EA HEMTT CBTS NEW.
Place of Performance
Location: OSHKOSH, WINNEBAGO County, WISCONSIN, 54902
Plain-Language Summary
Department of Defense obligated $53.6 million to OSHKOSH DEFENSE LLC for work described as: FAMILY OF HEAVY TACTICAL VEHICLES (FHTV) V 5 YEAR FIXED PRICE W/ ECONOMIC PRICE ADJUSTMENT (FPEPA) REQUIREMENTS CONTRACT W/ CURVE PRICING. THIS IS A DELIVERY ORDER FOR 90 EA HEMTT CBTS NEW. Key points: 1. Contract awarded to Oshkosh Defense LLC for 90 HEMTT CBTS new vehicles. 2. This is a delivery order under a 5-year fixed-price contract with economic price adjustment. 3. The contract has a duration of 561 days. 4. The North American Industry Classification System (NAICS) code is 336212 (Truck Trailer Manufacturing).
Value Assessment
Rating: good
The contract is a fixed-price with economic price adjustment (FPEPA) type, which offers some protection against inflation for the contractor. The specific pricing for this delivery order is not detailed, but the overall contract value is $53,584,830.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these vehicles.
Public Impact
Ensures continued supply of critical heavy tactical vehicles for military operations. Supports Oshkosh Defense LLC, a key defense contractor. Potential for price increases due to economic price adjustment clause. Lack of competition raises questions about cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Economic price adjustment can increase costs due to inflation.
- Contract duration is relatively short for a large vehicle program.
Positive Signals
- Ensures availability of essential heavy tactical vehicles.
- Supports a known and experienced defense contractor.
Sector Analysis
The Department of Defense frequently procures heavy tactical vehicles for logistical support and operational deployment. Spending in this sector is driven by military readiness requirements and modernization efforts. Benchmarks for similar vehicle procurements vary widely based on specifications and quantities.
Small Business Impact
This contract was awarded directly to Oshkosh Defense LLC, a large business. There is no indication of subcontracting opportunities for small businesses within this specific delivery order.
Oversight & Accountability
The award is a delivery order under an existing contract, suggesting some level of prior oversight. However, the sole-source nature of the award warrants scrutiny to ensure fair pricing and value for taxpayer funds.
Related Government Programs
- Truck Trailer Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Potential for cost increases due to EPA
- Lack of transparency in pricing for this specific order
- Limited information on overall program cost
Tags
truck-trailer-manufacturing, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.6 million to OSHKOSH DEFENSE LLC. FAMILY OF HEAVY TACTICAL VEHICLES (FHTV) V 5 YEAR FIXED PRICE W/ ECONOMIC PRICE ADJUSTMENT (FPEPA) REQUIREMENTS CONTRACT W/ CURVE PRICING. THIS IS A DELIVERY ORDER FOR 90 EA HEMTT CBTS NEW.
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 $53.6 million.
What is the period of performance?
Start: 2025-12-16. End: 2027-06-30.
What is the justification for awarding this contract on a sole-source basis rather than through full and open competition?
Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, or when the agency determines it is not in the public interest to compete the requirement. Specific justifications for this award would need to be reviewed in the contract file, potentially citing unique capabilities or urgent needs.
How will the economic price adjustment (EPA) clause be managed to mitigate potential cost overruns for taxpayers?
The EPA clause allows for adjustments to the contract price based on specific economic indices, such as inflation. Effective management involves clearly defined indices, regular monitoring, and negotiation of adjustments to ensure they reflect actual cost increases and do not unduly benefit the contractor.
What is the projected total cost of the Family of Heavy Tactical Vehicles (FHTV) program over its 5-year duration, and how does this delivery order fit into that budget?
The provided data only details a single delivery order valued at $53.6 million. The total projected cost for the 5-year FHTV program is not specified. Understanding the overall program budget and how this order contributes to it is crucial for assessing long-term financial commitment and value.
Industry Classification
NAICS: Manufacturing › Motor Vehicle Body and Trailer Manufacturing › Truck Trailer Manufacturing
Product/Service Code: MOTOR VEHICLES, CYCLES, TRAILERS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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: $53,584,830
Exercised Options: $53,584,830
Current Obligation: $53,584,830
Subaward Activity
Number of Subawards: 86
Total Subaward Amount: $14,526,481
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W912CH24D0008
IDV Type: IDC
Timeline
Start Date: 2025-12-16
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2025-12-16
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