The US Army has officially announced the winner of the hotly contested Joint Light Tactical Vehicle program, awarding the initial $6.7-billion contract to the Oshkosh Corporation. This deal only covers low-rate initial production and full-rate production, which would include some 17,000 vehicles. In reality, though, the total program will likely cost taxpayers some $30 billion over the next few decades. According to Foxtrot Alpha, 55,000 vehicles will eventually be built for the US Army and Marine Corps, although that figure is likely very conservative. After all, over 280,000 Humvees have hit battlefields and bases since 1984.

Oshkosh beat out current Humvee builder AM General and defense giant Lockheed Martin for the honor of replacing the military's workhorse. The three companies combined to put forth a total of 22 different prototypes for the TACOM's consideration, with the winning bidder combining MRAP-rivaling blast protection and a Baja truck's off-road ability in a form factor that can fit in the belly of a C-130.

"Because of the JLTV program, our Soldiers and Marines are getting a level of technical performance that no other vehicle can match," said retired Army Major General John M. Urias, president of Oshkosh Defense said in the attached statement. "Our JLTV has been extensively tested and is proven to provide the ballistic protection of a light tank, the underbody protection of an MRAP-class vehicle, and the off-road mobility of a Baja racer."

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U.S. Army Awards $6.7 Billion Joint Light Tactical Vehicle Contract to Oshkosh Corporation
Oshkosh's JLTV is the Next Generation Light Vehicle Designed to Move and Protect Our Troops in Future Missions

August 25, 2015 05:36 PM Eastern Daylight Time
OSHKOSH, Wis.--(BUSINESS WIRE)--The U.S. Army Tank-automotive and Armaments Command (TACOM) Life Cycle Management Command (LCMC) has awarded Oshkosh Defense, LLC, an Oshkosh Corporation (NYSE: OSK) company, a $6.7 billion firm fixed price production contract to manufacture the Joint Light Tactical Vehicle (JLTV). The JLTV program fills a critical capability gap for the U.S. Army and Marine Corps by replacing a large portion of the legacy HMMWV fleet with a light tactical vehicle with far superior protection and off-road mobility. During the contract, which includes both Low Rate Initial Production (LRIP) and Full Rate Production (FRP), Oshkosh expects to deliver approximately 17,000 vehicles and sustainment services.

"Following a rigorous, disciplined JLTV competition, the U.S. Army and Marine Corps are giving our nation's Warfighters the world's most capable light vehicle – the Oshkosh JLTV," said Charles L. Szews, Oshkosh Corporation chief executive officer. "Oshkosh is honored to be selected for the JLTV production contract, which builds upon our 90-year history of producing tactical wheeled vehicles for U.S. military operations at home and abroad. We are fully prepared to build a fleet of exceptional JLTVs to serve our troops in future missions."

The JLTV program provides protected, sustained and networked light tactical mobility for American troops across the full spectrum of military operations and missions anywhere in the world. The JLTV production contract awarded to Oshkosh includes a base contract award and eight option years covering three years of LRIP and five years of FRP. Oshkosh will begin delivering vehicles approximately ten months after contract award.

"Because of the JLTV program, our Soldiers and Marines are getting a level of technical performance that no other vehicle can match," said U.S. Army Major General (Retired) John M. Urias, executive vice president of Oshkosh Corporation and president of Oshkosh Defense. "Our JLTV has been extensively tested and is proven to provide the ballistic protection of a light tank, the underbody protection of an MRAP-class vehicle, and the off-road mobility of a Baja racer. The Oshkosh JLTV allows troops to travel over rugged terrain at speeds 70% faster than today's gold standard, which is our Oshkosh M-ATV. Looking to future battlefields, we know that our troops will face a myriad of threats. Soldiers and Marines can be assured that the highly capable Oshkosh JLTV will perform the mission."

The JLTV Family of Vehicles is comprised of two variants, a two seat and a four seat variant, as well as a companion trailer (JLTV-T). The two seat variant has one base vehicle platform, the Utility (JLTV-UTL). The four seat variant has two base vehicle platforms, the General Purpose (JLTV-GP) and the Close Combat Weapons Carrier (JLTV-CCWC).

The Oshkosh JLTV combines the latest in automotive technologies with the Oshkosh CORE1080 crew protection and TAK-4i™ independent suspension systems to provide next generation performance. In designing its JLTV, Oshkosh leveraged its extensive experience producing and sustaining more than 150,000 heavy, medium and protected MRAP vehicles for the U.S. and its allies.


The Oshkosh JLTV Journey
2005: Oshkosh begins developing its next generation TAK-4i independent suspension system
2007: Oshkosh develops the Light Combat Tactical Vehicle (LCTV) technology demonstrator
2010: The Oshkosh LCTV is the first military-class vehicle to complete the Baja 1000 desert off-road race
2011: Oshkosh evolves its design and introduces the Light Combat Tactical All-Terrain Vehicle (L-ATV), the platform for the Oshkosh JLTV solution
2012: U.S. Government awards Oshkosh one of three JLTV Engineering and Manufacturing Development (EMD) contracts in August
2013: Oshkosh builds its JLTV EMD prototypes on a warm production line and delivers them to the U.S. Army for EMD testing and evaluation
2014: During EMD, Oshkosh successfully completes all requirements, testing and evaluation
2015: Oshkosh responds to the U.S. Government's JLTV Production Request for Proposal in February and Request for Final Proposal Revisions in July
2015: Oshkosh is awarded the JLTV Production contract

"Developing our Oshkosh JLTV solution has been an incredible journey," said Szews. "For the past decade, our entire team has been focused on putting our troops behind the wheel of the world's most capable light vehicle. It's our relationship with our troops and our deep appreciation for their service that inspires our best work every day. I offer my sincere thanks to our employees and suppliers for their years of dedication to reach this historic day."

About Oshkosh Defense

Oshkosh Defense is a leading provider of tactical wheeled vehicles and life cycle sustainment services. For decades Oshkosh has been mobilizing military and security forces around the globe by offering a full portfolio of heavy, medium, light and highly protected military vehicles to support our customers' missions. In addition, Oshkosh offers advanced technologies and vehicle components such as TAK-4® independent suspension systems, TerraMax® unmanned ground vehicle solutions, Command Zone™ integrated control and diagnostics system, and ProPulse® diesel electric and on-board vehicle power solutions, to provide our customers with a technical edge as they fulfill their missions. Every Oshkosh vehicle is backed by a team of defense industry experts and complete range of sustainment and training services to optimize fleet readiness and performance. Oshkosh Defense, LLC is an Oshkosh Corporation company [NYSE: OSK].


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