Oshkosh Defense can continue its work on the Joint Light Tactical Vehicle after a US Court of Federal Claims judge dismissed rival Lockheed Martin's latest legal roadblock.
At the heart of the issue was the government's decision to choose Oshkosh's JLTV entry (shown above) over Lockheed's, with the latter claiming that the Army supplied new information that the US Government Accountability Office couldn't take into consideration during the official protest period. Lockheed, which already holds numerous big-ticket government contracts, including the controversial F-35 Lightning II and littoral combat ship, filed an official protest with the GAO following the August Oshkosh announcement. That was dismissed on December 15.
Two days later, Lockheed escalated its complaint to the Court of Federal Claims and sought a preliminary injunction to prevent Oshkosh from continuing work on the JLTV. While that request has officially been knocked down, it's still far from the end of the legal drama over the $6.7-billion contract to build 17,000 vehicles for Uncle Sam. The court's decision not to grant the injunction does bode well for Oshkosh's case, though, and it showed in a statement from the group's president and CEO, Wilson Jones.
Jones called the Army's decision-making process thorough and methodical, and said he was confident the court's ultimate decision will favor Oshkosh. Read on for the complete statement from Oshkosh.
U.S. Court of Federal Claims Denies Lockheed Martin's Request for Preliminary Injunction
OSHKOSH, Wis. (February 12, 2016) – Oshkosh Defense, LLC, an Oshkosh Corporation (NYSE: OSK) company, will continue to perform work on the Joint Light Tactical Vehicle (JLTV) production contract based on the U.S. Court of Federal Claims' decision to deny Lockheed Martin's request for a preliminary injunction while its protest is being heard. The JLTV program, which is cited among the Department of Defense's highest modernization priorities, is charged with providing greater protection and off-road mobility for American troops as they perform future combat operations virtually anywhere in the world.
"This decision is another indication that the U.S. Army conducted a thorough, methodical procurement process, and we are confident that the original JLTV contract award to Oshkosh will be upheld," said Wilson R. Jones, Oshkosh Corporation president and chief executive officer. "The Oshkosh JLTV team, including our employees and hundreds of suppliers, is pleased to continue our work to deliver JLTVs to our nation's Soldiers and Marines."
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 modern light vehicle that provides unprecedented protection and off-road mobility, as well as transportability via air, land and sea. The $6.7 billion JLTV production contract calls for Oshkosh to deliver a total volume of nearly 17,000 vehicles, as well as kits and sustainment services over an eight-year period.
On December 15, 2015, the U.S. Government Accountability Office (GAO) dismissed Lockheed Martin's protest just days before the GAO was expected to issue its decision. The U.S. Army promptly lifted the stop work order and instructed Oshkosh to resume performance on the JLTV contract. On December 17, 2015, Lockheed took its objections to the U.S. Court of Federal Claims and the next day requested an injunction to stop work on the JLTV program. On February 11, 2016, the U.S. Court of Federal Claims denied the injunction, permitting Oshkosh to continue working under the JLTV contract.
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].
To learn more about Oshkosh Defense, please visit us at www.oshkoshdefense.com.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of access equipment, commercial, fire & emergency, military and specialty vehicles and vehicle bodies. Oshkosh Corporation manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Jerr-Dan®, Frontline™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide by rental companies, concrete placement and refuse collection businesses, fire & emergency departments, municipal and airport services and defense forces, where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, please visit www.oshkoshcorporation.com.
®, TM All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.