Army Moves To Build New Generators
May 26, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Contract Awards, Events, Fidelity Technologies, Pennsylvia, Services, States, U.S. Army, development program, logistics
Filed under: Business Line, Companies, Contract Awards, Events, Fidelity Technologies, Pennsylvia, Services, States, U.S. Army, development program, logistics
Due to grounding issues generators provided by KBR led to the accidental deaths of several soldiers in Iraq as they went to take showers. The generators were powering hot water systems. The Army went ahead and designed new systems that are larger and have more sophisticated circuitry to prevent these issues. By centralizing power generation more fuel is saved as well as less individual generators are used.
Fidelity Technologies of Pennsylvania has begun to ramp up to produce these generators. The initial contract is for about $24 million and will produce over three thousand of the generators. In order to meet this new order the company is actually hiring personnel.
This shows that as programs end others start. Different priorities allow companies to move into niches that may not have existed before. This allows new business lines to develop and grow. Unfortunately the boom-or-bust nature of U.S. defense procurement can make this difficult for sustained growth or stability.
JLTV very important to Oshkosh
September 7, 2008 by Matthew Potter · Comment
Filed under: Department of Defense, Federal Budget Process, Northrop Grumman Corp., Oshkosh Truck Corp, Proposal, logistics, production program
Filed under: Department of Defense, Federal Budget Process, Northrop Grumman Corp., Oshkosh Truck Corp, Proposal, logistics, production program
Oshkosh Industries has struggled over the last 18 months with the downturn in the economy. The stock is down almost 75% since last September. The slowdown in the world economy, especially the construction industry, has hit the company hard. It has received several US defense contracts for heavy vehicles and MRAPs. It also is teamed with Northrop Grumman on the Joint Light Tactical Vehicle (JLTV) proposal for a new tactical vehicle for the US military. If its team wins that will be a lot of work replacing the ubiquitous HUMVEE used by all four of the US services. That would offset the struggles it has been having with its conventional business lines.
See The Milwaukee Journal-Sentinal article for more.
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