GAO Decision affirms Major Army Conclusions Supporting Oshkosh FMTV Award; Denies Challenges to $440 Million Dollars in Savings And Nearly All Other Protestor Complaints — Press Release

December 17, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Events, Oshkosh Truck Corp, Press Releases, production program

GAO Decision affirms Major Army Conclusions Supporting Oshkosh FMTV Award; Denies Challenges to $440 Million Dollars in Savings And Nearly All Other Protestor Complaints

OSHKOSH, Wis. — Dec. 17, 2009 — The U.S. Army’s conclusion that Oshkosh Corporation (NYSE: OSK) proposed the lowest price and has the capability and experience to build the Family of Medium Tactical Vehicles (FMTV) was unchallenged by the Government Accountability Office’s (GAO) decision, released in redacted form today. The decision significantly expands on the GAO’s press release of December 14, 2009, regarding the protests against the U.S. Army’s award decision by BAE Systems and Navistar Defense.

The decision by the GAO upheld only two narrowly-defined aspects of the protests against the U.S. Army by the disappointed bidders, rejecting all of the numerous other protest grounds raised during the three-month protest process which covered virtually every aspect of the evaluation.

The GAO determined that the Army erred in evaluating one element of the broader production capability subfactor. To address this, the GAO recommended that the Army re-evaluate the offerors’ proposals as to this element and also determine whether there was any possible impact on a second element. These elements are just two of seven elements in the production subfactor of the capability evaluation factor, all of which receive less weight than price. The GAO provided no opinion as to whether the re-evaluation of these two elements would in fact change the award decision by the Army.

The Oshkosh proposed price is significantly lower than what the Government is currently paying the incumbent FMTV contractor and was revealed today to be nearly $440 million lower over the life of the contract than that proposed by incumbent BAE. Widely publicized protestor complaints relating to Oshkosh’s price, armored cab design, financial stability and manufacturing prowess all were denied by the GAO. The GAO stated in its decision, “With the exception of two areas, we find that the [Army’s] evaluation was reasonable.” Oshkosh Defense was awarded the contract on August 26, 2009.

“After a thorough acquisition process by the Army that began nearly seven months ago, followed by formal protests that took three months to resolve, we believe the Army will quickly and appropriately address the GAO’s recommendations,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “We believe that in its review, the Army will find that Oshkosh Corporation was and continues to be the correct choice for the FMTV contract, providing proven capability and the best value to the Army and the taxpayer.”

As the GAO’s decision reaffirms, Oshkosh was awarded the contract because the company bid the FMTV at a very competitive price while receiving excellent evaluations for meeting vehicle production and delivery requirements, including any possible production surges that might be required by the Army.

The U.S. Army has 60 days from December 14, 2009 to act on the GAO’s recommendations and report its findings.

“Oshkosh plans to build the FMTV and meet all of the Army’s objectives while saving hundreds of millions of taxpayer dollars that the Army can use for other pressing requirements,” Bohn said. “And we will do this without impacting our other existing or proposed military vehicle contract programs.”

Bohn added, “It is important to realize the GAO’s decision did not recommend that the proposals be recompeted or revised, nor did it recommend termination of our contract. We believe that the redacted decision issued today further supports our assessment that Oshkosh is in a strong position to retain the contract when the two narrow issues on which the protests were upheld are reconsidered.”

Oshkosh remains the only current manufacturer of both medium and heavy tactical wheeled vehicles in the U.S. defense industry, having produced more than 70,000 military-class vehicles in its manufacturing facilities. Oshkosh Corporation’s proven production capabilities were recently recognized by the National Center for Advanced Technologies (NCAT), which awarded Oshkosh with a 2009 Defense Manufacturing Excellence Award for its M-ATV launch team, which has exceeded delivery requirements for every month since the contract award on June 30, 2009.

About Oshkosh Defense

Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.

About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corp. manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, Oshkosh Specialty Vehicles, Frontline™, SMIT™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, log on to www.oshkoshcorporation.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

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Forward-Looking Statements

This press release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this press release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include risks related to the required increase in the rate of production for the M-ATV contract and the amount, if any, of additional orders for M-ATVs that the Company may receive; the cyclical nature of the Company’s access equipment, commercial and fire & emergency markets, especially during a global recession and credit crisis; the duration of the global recession, which could lead to additional impairment charges related to many of the Company’s intangible assets; the expected level and timing of U.S. Department of Defense procurement of products and services and funding thereof, including the outcome of the formal protests of the Family of Medium Tactical Vehicles (FMTV) award to the Company; risks related to reductions in government expenditures and the uncertainty of government contracts; the consequences of financial leverage associated with the JLG acquisition, which could limit the Company’s ability to pursue various opportunities; risks related to the collectability of receivables during a recession, particularly for those businesses with exposure to construction markets; risks related to production delays as a result of the economy’s impact on the Company’s suppliers; the potential for commodity costs to rise sharply, including in a future economic recovery; risks associated with international operations and sales, including foreign currency fluctuations; and the potential for increased costs relating to compliance with changes in laws and regulations. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this press release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this press release.

Tags: award decision, cab design, fmtv, government accountability office, medium tactical vehicles, Navistar, production capability, second element, two elements, u s army

Oshkosh Corporation Believes the Army’s FMTV Award Decision Will Be Maintained — Press Release

December 14, 2009 by Matthew Potter · 1 Comment
Filed under: Business Line, Companies, Events, Oshkosh Truck Corp, Press Releases, Protest, production program

Oshkosh Corporation Believes the Army’s FMTV Award Decision Will Be Maintained

OSHKOSH, Wis. — Dec. 14, 2009 — Oshkosh Corporation (NYSE:OSK) today announced it was informed by the Government Accountability Office (GAO) of its decision regarding the protest of the Family of Medium Tactical Vehicles (FMTV) contract, awarded to Oshkosh on August 26. The majority of the protesters’ claims were denied, including challenges to the evaluation of the Oshkosh Corporation price.

“At Oshkosh, we appreciate the GAO’s thorough review and welcome the Army’s re-evaluation of the two narrow issues recommended for reconsideration. We believe that our FMTV offer was, and continues to be, the best value for the U.S. Army, our troops and the U.S. taxpayer,” said Robert G. Bohn, Oshkosh Corporation chairman and chief executive officer. “It is important to realize that today’s decision did not recommend proposal revisions nor did it recommend termination of our contract.”

Bohn added, “We believe that when these narrow issues are reconsidered, the Army’s decision to award Oshkosh Corporation the FMTV contract will be maintained.”

Oshkosh Corporation will continue to lean forward on the FMTV program, including preparation for the construction of a new 150,000-square-foot electrocoat (E-Coat) paint facility at its Oshkosh, Wis., campus in support of FMTV production and possibly other Oshkosh vehicle programs.

About Oshkosh Defense
Oshkosh Defense, a division of Oshkosh Corporation, is an industry-leading global designer and manufacturer of tactical military trucks and armored wheeled vehicles, delivering a full product line of conventional and hybrid vehicles, advanced armor options, proprietary suspensions and vehicles with payloads that can exceed 70 tons. Oshkosh Defense provides a global service and supply network including full life-cycle support and remanufacturing, and its vehicles are recognized the world over for superior performance, reliability and protection. For more information, visit www.oshkoshdefense.com.

About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of a broad range of specialty access equipment, commercial, fire & emergency and military vehicles and vehicle bodies. Oshkosh Corp. manufactures, distributes and services products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®, Medtec®, Jerr-Dan®, BAI™, Oshkosh Specialty Vehicles, Frontline™, SMIT™, CON-E-CO®, London® and IMT®. Oshkosh products are valued worldwide in businesses where high quality, superior performance, rugged reliability and long-term value are paramount. For more information, log on to www.oshkoshcorporation.com.

®, ™ All brand names referred to in this news release are trademarks of Oshkosh Corporation or its subsidiary companies.

Tags: award decision, class vehicles, coat paint, fmtv, government accountability office, medium tactical vehicles, paint facility, production capabilities, proposal revisions, u s army

Oshkosh Wins Another Contract

August 28, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Contract Awards, Events, Oshkosh Truck Corp, Services, U.S. Army, logistics, production program

Following up on its recent MRAP-ATV and heavy truck contracts Oshkosh announced that they have been awarded another contract to build Family of Medium Tactical Vehicle (FMTV) trucks and trailers. This contract is called the rebuy program. If all options are exercised over the next five years the contract could be worth up to $2.6 billion.

The initial order is for about $280 million worth of the vehicles. The rebuy seems to indicate that this contract is to begin replenishing the supply of the vehicles in the Army. The U.S. lost a great deal of vehicles in Iraq and Afghanistan to IED and mines. These were of all types including tanks, armored personnel carriers and logistic support vehicles like the FMTV.

Tags: armored personnel carriers, atv, Contract Awards, Contract Awards, fmtv, heavy truck, logistic support, next five years, oshkosh, support vehicles, tanks

Incident Control Systems Develops New Composite Armor Rapid Escape Door System — Press Release

June 23, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Events, ICS, Press Releases, development program, logistics, production program

Incident Control Systems Develops New Composite Armor Rapid Escape Door System

New Bedford, MA, June 23, 2009: Incident Control Systems, LLC has developed a new revolutionary composite armor door system called C-LEADS. C-LEADS is a Composite Lightweight Escape Armored Door System, designed to be a one-for-one replacement for traditional metallic armor doors on tactical and combat wheeled vehicles that provides rapid escape for vehicle applicant. The protection level of C-LEADS is scalable in order to meet vehicle specific requirements. The advanced composite armor technology reduces the weight of up to 30% compared to metallic armor systems while maintaining the same protection level. The composite armor has been successfully tested against IED’s at close range as well as a variety of direct fire threats ranging from the 7.62mm AP to the 14.5mm AP. The C-LEADS design incorporates three rapid escape mechanisms that allow for quick extrication of personnel inside.

The replacement doors have a quick release window box, quick release hinges, and an improved “all in one” combat lock and latch system. These escape mechanisms can be accessed from either outside or inside the vehicle. The U.S. Army has expressed an interest in the C-LEADS design for use on the HMMWV and a partnership to further develop the HMWWV design with the Amy is underway. ICS has designed the C-LEADS doors for the HMMWV, FMTV and MRAP vehicles.

“Our goal was to design a door that could replace heavy steel armor while maintaining the same level of protection. We were able to do this and add additional safety features like the rapid escape devices” said Eddie Terrenzi, VP of Business Development for Incident Control Systems, LLC.

Headquartered in New Bedford, Massachusetts, Incident Control Systems is a small business that specializes in the design, manufacture, and integration of advanced composite armor solutions for military combat vehicles.

Contact: Incident Control Systems, LLC
Eddie Terrenzi
508.984.8820
eterrenzi@incidentcontrolsystems.com

Tags: armor systems, combat vehicles, composite armor, direct fire, escape devices, extrication, fire threats, fmtv, heavy steel, hmmwv, incident control systems, latch system, military combat, mrap vehicles, new bedford massachusetts, replacement doors, steel armor, ter, u s army, wheeled vehicles

Congressman McCaul and BAE Systems Recognize Texas’ Support of National Defense Through Combat Proven FMTV Program

March 16, 2010 by Business Wire Defense: Contracts News · Comment
Filed under: Syndicated Industry News

SEALY, Texas--(BUSINESS WIRE)--Congressman Michael McCaul (R-TX 10) and BAE Systems today recognized the people of Texas for 17 years of dedicated support to the nation’s defense through the successful production of the U.S. Army’s Family of Medium Tactical Vehicles (FMTV) program. During a special FMTV Community Day celebration held at BAE Systems’ 200-acre production facility in Sealy, Texas, Rep. McCaul thanked BAE Systems’ employees who have built more than 56,000 FMT