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Rumor Of New MRAP Contracts For Afghanistan May Bouy Navistar

by: Matthew Potter
February 4, 2010

Category: BAE Systems, Business Line, Companies, Department of Defense, Events, Force Protection, logistics, Navistar, Oshkosh Truck Corp, production program, Services | RSS 2.0

An internal memo from within the Department of Defense some how leaked out. It states that in support of the U.S. operations in Afghanistan a further 2,500 Mine Resistant Ambush Protected (MRAP) vehicles will be required. Over the last two years the focus of acquisition for these kind of vehicles has been the Oshkosh produced MRAP-AT which was the result of the MRAP-All Terrain Vehicle (ATV) contest. The MRAP-ATV requirements were for a lighter, more maneuverable vehicle able to operate better in Afghanistan’s rough terrain.

Navistar was unable to win the MRAP-ATV contest and have missed out on the several hundred million dollars worth of orders for those vehicles. If the memo is correct an order for over one thousand of their MRAP type vehicles for use in Afghanistan will be welcome. The U.S. military has spent a great deal on MRAPs to serve in Iraq and Afghanistan over the last five years. They now possess significant numbers of them and will use them for several years to come. There will be little need to buy more of them and this will affect Navistar, BAE Systems and Force Protection all who ramped up production to meet demand.

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