Force Protection to Upgrade U.S.M.C. MRAP Vehicles

by: Matthew Potter
August 24, 2010

Category: BAE Systems, Business Line, Companies, Contract Awards, Department of Defense, Events, Force Protection, logistics, Navistar, Oshkosh Truck Corp, production program, Services, U.S. Marine Corps | RSS 2.0

The United States Marine Corps announced that they are awarding a Force Protection (FRPT) a contract to upgrade over two thousand Mine Resistant Ambush Protected (MRAP) vehicles previously purchased. The contract to modify the seats on these Cougar vehicles is worth over $60 million.

The U.S. military has invested billions in MRAP vehicles since 2005 due to the prevalence of the mine and Improvised Explosive Device (IED) threat in Iraq and Afghanistan. MRAP provide the ability to move troops across terrain with a higher level of protection then more conventional armored vehicles. Force Protection along with Navistar (NAV), BAE Systems (BAE:LSE) and Oshkosh (OSK) have built thousands of these vehicles for the U.S. military and many Allies.

One of the advantages of being a major hardware supplier to the U.S. military and other customers is the ability to win contracts to modify, support and maintain that hardware. This contract is a good example of that as Force Protection is earning revenue off of already delivered and in-service vehicles.

Force Protection stock has struggled since its high of almost $30 in 2007 to where in the last year it has been between $4 and $6. The U.S. has turned mainly to Oshkosh for its latest MRAP-AT vehicle designed for the more rugged terrain of Afghanistan.

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