At Breaking Defense, Colin Clark explains why the recent contract award to build the first batch of Joint Light Tactical Vehicles (JLTV) to Oshkosh is kind of a big deal:
You wouldn’t have known it from the way the Army announced it, but the service awarded arguably its most important contract in a decade this evening to build the first 17,000 Joint Light Tactical Vehicles (JLTV) to Oshkosh.
“The JLTV production contract is a historic win for Oshkosh Corporation and more than 300 suppliers in 31 states across the country, and most importantly, for America’s warfighters,” says Charles Szews, Oshkosh CEO. Oshkosh beat back impressive efforts by Lockheed Martin and AM General to win today’s $6.75 billion contract. We’ll find out in the next 10 days if either or both of them file a protest. Many observers expect just that and the program officials at this evening’s briefing were unwilling to say virtually anything about why Oshkosh won or the strengths or weaknesses of any of the three competitors. They clearly feared giving someone grounds for a protest. Scott Davis, head of the Army’s Program Executive Office Combat Support & Combat Service Support, told us “there is no expectation of a protest,” but his language was very carefully chosen. They may not expect a protest, but that doesn’t mean they aren’t worried one will be filed.
Sen. Tom Cotton, in whose state the Lockheed version would have been built, appeared to open the door to political pressure to change the results when he issued a statement this evening that included the pledge that “as Lockheed Martin explores their next steps, we stand ready to assist them however we can.” Since the fixed price low rate initial production contract with eight options has been awarded, about the only next step would be a protest.
How committed was Lockheed Martin to this competition? It bought partner BAE Systems’ entire wheeled vehicle production line and physically moved it from Sealy, Texas to Camden, Ark.
The JLTV will replace most of the US military’s Humvees, the iconic vehicle built by AM General. The Marines are getting 5,500 JLTVs and the rest go to the Army. Up to 40,000 JLTVs will be built through 2040.