Has Force Protection Turned the Corner?

by: Matthew Potter
April 10, 2009

Category: Business Line, Companies, Congress, Contract Awards, Department of Defense, Events, Federal Budget Process, Force Protection, Industry Analysis, logistics, production program, Proposal, Restructuring, Services, U.S. Army | RSS 2.0

It has been a good few weeks for Force Protection. First they set up the joint venture withe British company Morgan Crucible JV to produce new armored support vehicles for the British military. Then they won a contract from Hungary for three Cougar vehicles plus support. While this is not a large contract it may certainly lead to other contracts from the new Eastern European NATO countries. Now it is reported that they have won a contract from the U.S.M.C. for upgraded MRAP vehicles. The big prize that is still out there is the MRAP-ATV contract which will build a new, lighter and more maneuverable vehicle for use in Afghanistan. Force Protection had been losing work in 2007-2008 after a big boom in 2005 and out due to the rapid demand for MRAP driven by the reaction from Congress to the IED threat. The company’s stock declined rapidly and there was a shareholder suit filed. If the company can keep up this pace and win some of the MRAP-ATV work then it will have a solid future for the next few years. Depending on how the new budget integrates MRAP and the future replacement for the FCS requirement there might be more work there for a long time. More to come on this for sure.

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