Oshkosh Wins $30 Billion US Army Contract to Build Humvee Replacement

Oshkosh Corp. won an initial contract Aug. 25 from the U.S. Army for its new Joint Light Tactical Vehicle, a $30 billion program.
The Army plans to purchase about 55,000 of the multipurpose land vehicles for its troops and the Marine Corps through 2040 as a better-armored replacement for the Humvee. The other two competitors for the contract were Lockheed Martin Corp. and AM General, the Humvee鈥檚 maker.
The initial contract, including options, is valued at $6.75 billion for about 17,000 vehicles, the Army said in a statement.
鈥淥shkosh has been building tactical vehicles for the Department of Defense for 90 years, so no other company understands the role that tactical vehicles play in our troops鈥 lives better than Oshkosh,鈥 Charles Szews, the company鈥檚 chief executive officer, said in a statement.
The losing bidders have 10 days to lodge a protest with the Government Accountability Office after they鈥檙e briefed on the decision, and Lockheed suggested that it may do so.
鈥淲e believe we presented a very strong solution and await the customers鈥 debrief to hear more detail regarding the reasons behind this selection before making a decision about a potential protest,鈥 the company said in a statement.
The Humvee entered service in 1985, when 鈥渋mprovised explosive devices (IEDs) and other anti-vehicle explosive devices were not a major factor in military planning,鈥 according to a March 9 report by the Congressional Research Service.
Deadly attacks on Humvees during the Iraq war led to efforts to speed delivery of Mine-Resistant Ambush-Protected vehicles, or MRAPs. The JLTV is envisioned as a more mobile, lighter descendant of the top-heavy MRAP, which has limited off-road capabilities, essentially combining the mobility of the Humvee and the protection of the larger MRAP.
The Army required that its Hummer replacement be able to survive the most destructive improvised bombs, be mechanically reliable and maintainable with onboard diagnostics, all-terrain mobility, and linked into current and future tactical data networks, according to the CRS.
Funding for the Joint Light Tactical Vehicle program would double to $457 million in 2016 under the Pentagon鈥檚 pending budget request, top $1.3 billion by 2018 and hit almost $1.8 billion in fiscal 2020, according to Army budget documents.
Army Secretary John McHugh told reporters in February that the JLTV was 鈥渁n essential platform鈥 that鈥檚 fully funded through 2020. A decision on full-rate production is scheduled for May 2018.
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