BREAKING: AM General Wins JLTV Re-Compete Contract over Oshkosh

By Stew Magnuson

Army photo

ALEXANDRIA, Virginia — In what could only be called a reversal of fortune, AM General Feb. 9 beat out incumbent Oshkosh to manufacture the next 20,000 joint light tactical wheeled vehicles for the Army and Marine Corps.

It was August 2015 when Oshkosh won the hotly competed contract to build the next generation of light tactical wheeled vehicles, beating out AM General, manufacturer of the then ubiquitous Humvee.

However, the JLTV program had built-in requirements to re-compete the contract to get the best price for the Army, which had purchased the Technical Data Package from Oshkosh.

“These government-held data rights permitted the program to compete this follow-on production contract with much better control of the production configuration and cost” the Army said in a statement.

The five-year contract, with five more one-year options, calls for South Bend, Indiana-based AM General to deliver up to 20,682 Joint Light Tactical Vehicles — known as the JLTV A2 — and up to 9,883 trailers.

Deliveries are expected to begin 17 months after contract award, AM General said in a statement. The total contract value is $8.66 billion, the Army announced in a press release.

“This competitive follow-on production contract has been part of the JLTV acquisition strategy from the beginning and focused on a best value determination that includes retaining the capability of the JLTV today, while ensuring that it can be upgraded in the future with the latest technologies,” an Army statement said.

Brig. Gen. Samuel L. “Luke” Peterson, program executive officer for Combat Support and Combat Service Support, in the statement said, “One of the key strategies of the JLTV program from its earliest days was to leverage competition to control cost and maximize buying power for the government.”

The next batch of JLTVS will have upgrades to the JLTV that Oshkosh designed and built at its Wisconsin factory.

In line with the Army Climate Strategy, the requirements sought to incentivize offerors to propose fuel efficiency technologies that targeted on-the-move fuel economy improvements and anti-idle capability in support of optimizing combat effectiveness, the statement said.

The JLTV A2 design is the first tactical wheeled vehicle with baseline architecture utilizing lithium-ion batteries, which is a key enabler for anti-idle capability, it added.

“The JLTV follow-on contract strategy was designed to provide a fair and competitive environment, while ensuring the Army obtained a premier manufacturer that delivers the highest quality, most capable, and affordable tactical vehicle in the world,” the Army said.

“We are humbled and honored to receive this contract and continue our strong partnership with the U.S. Armed Forces. The effort that we put into our winning proposal is testament to our commitment to serve those who serve to protect us,” said Jim Cannon, AM General President and CEO, said in a statement.

The JLTV will be produced in a dedicated military production facility at AM General’s 96-acre Mishawaka Manufacturing Campus in Indiana, the statement said.

It features an onsite test track where the vehicles will undergo testing in a dynamic operating environment.

“We were disappointed to learn the government’s decision,” an Oshkosh statement said, adding that the company is pursuing a debrief on the decision.

In the meantime, Oshkosh will continue producing JLTVs as the Army placed an $84.9 million order with Oshkosh Feb. 3.


Topics: Land Forces, Defense Contracting

Comments (3)

Re: AM General Wins JLTV Re-Compete Contract over Oshkosh

The Army is buying 30,000 trucks and trailers for about $9 billion, translates to roughly $300,000 a copy. R&D expenses were not included.
If this is value, I'd hate to see what regular purchases look like.

etudiant at 12:54 PM
Re: AM General Wins JLTV Re-Compete Contract over Oshkosh

That's an odd comment Vinny as AMG will be building the OSK designed truck and trailer, not the AMG proposal.

James Larson at 4:43 PM
Re: AM General Wins JLTV Re-Compete Contract over Oshkosh

I worked as a consultant on the JLTV development program at AM General, and knew we had a much better product than what Oshkosh was offering. Glad to see that TACOM final chose the better product and team!!!

Vincent Johnston at 10:36 AM
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