MRAP-ATV Contract Spills Over To SCHOTT North America

Oshkosh Defense was awarded the contract to build the new Mine Resistant Ambush Protected – All Terrain Vehicle (MRAP-ATV) earlier this year for use in the rougher terrain of Afghanistan. Under this contract several thousand vehicles will be built for use by the Army, Marine Corps and other services. As with any contract of this size there will be large orders placed with the necessary sub-contractors.

For example Plasan in Vermont will provide armor plate for the vehicles as they have for other MRAP and up-armored trucks and HUMVEES. Now SCHOTT North America located in Indiana announced that they have received a contract from Oshkosh to provide armored glass for the MRAP-ATV.

The contract will be require over a hundred more workers to be hired and the company to invest about $7 million in their plants. This contract illustrates how large defense contracts while seemingly being awarded to only one company spread across the U.S. and foriegn suppliers as parts and components are produced.

More MRAP-ATV Work For Vermont’s Plasan

This Summer Oshkosh was awarded the new Mine Resistant Ambush Protected (MRAP) ATV contract to begin building new, lighter vehicles for use in Afghanistan. This is a multi-billion contract for several thousand of the lighter, more maneuverable vehicles. Obviously Oshkosh must then add awards to its suppliers.

One of the key ones is Plasan North America located in Vermont that builds armor plate for the new vehicle. Plasan is an Israeli based company that has expanded into the United States. The Israeli military has long experience with the kinds of vehicles like MRAP in their low level fighting in Lebanon, Gaza and the West Bank. As Oshkosh makes their contracted 4,000 vehicles Plasan will make armor for them. The company is planning to expand its plant and hire more people as work ramps up.

Of course like all military contracts it will end one day and that may lead to plant closings and lay offs unless other work can be found. This is what BAE Systems is facing in Sealy, TX after losing a truck contract. This unfortunately is what the military procurement system does as it only the ability to support so many procurement programs at once.

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