U.S.M.C. Gives Support Contract To Force Protection

Force Protection had a heyday a few years ago as a manufacturer of Mine Resistant Ambush Protected (MRAP) vehicles. In 2005 – 2007 the U.S. military could not buy the vehicles fast enough as Congress showered them with money for them. The IED and mine threat at that time was consistently inflicting the most casualties on the U.S. and its allies. It still remains a potent threat in Afghanistan but not as much in Iraq as the U.S. slowly pulls its troops out.

Force Protection was unable to keep its sales up as more companies entered the market. There have been some recent sales to overseas customers but the main U.S. defense buys have dried up. The company was able to announce today that it had signed a contract with the U.S.M.C. for field service support to its existing vehicles. This contract is worth over $26 million.

An OEM often has the ability to sell maintenance, support and modification services to the military once production of an article is completed. Eventually the defense department may turn to other providers so that market too ends. It behooves a company to keep improving their products or make new ones that attract the market.

UK Buys Force Protection MRAPs

Force Protection announced that they had signed a contract to provide the United Kingdom twenty-three Mine Resistant Ambush Protected (MRAP) vehicles. The contract was signed through the USMC. The vehicles will most likely be used in Afghanistan to support the British forces there.

The continued operations there have demanded extreme efforts to protect against the mine and IED threat. The U.S. and its Allies continue to invest in MRAP vehicles while trying t figure out how best to fit then into their traditional organizations.

Plasan Gets Another Armor Contract For The MRAP-ATV

Oshkosh builds the MRAP-ATV for the U.S. military for use in Afghanistan. This is a lighter, more maneuverable Mine Resistant Ambush Protected (MRAP) vehicle then the older designs. They utilize the Israeli company, Plasan, to make armor kits for these vehicles. Because the U.S. has been buying billions of dollars worth of the vehicles Plasan as well has been receiving substantial contracts as well.

The company announced yesterday a further $170 million contract to build 1,460 kits. Plasan has been growing steadily as the world’s demand for armored vehicles, especially those optimized for protection against IED and mines, has also grown. As the U.S. and its allies build out their fleets of vehicles ultimately demand will decline. The MRAP market has already seen some changes as the focus of effort shifted from Iraq to Afghanistan and will again as the U.S. ends its commitment there.

Oshkosh And The MRAP-ATV: 4 Billion Dollars And Counting

January 27, 2010 by Matthew Potter · Comment
Filed under: BNET 
Oshkosh (OSK) was able to balance off its losses in their commercial sector though winning contracts to make Mine Resistant Ambush Protected (MRAP)...

First Prophet Enhanced System Delivered By GD

The U.S. Army awarded General Dynamic’s C4 Systems a contract earlier this year to build Prophet Enhanced signal and tactical intelligence systems. This contract has a value of almost $900 million over six years if all options are executed. Two days ago the first of these new systems were delivered to the Army ready to be mounted on a vehicle.

The Prophet is a flexible system that can be installed either in a ground mount or on a variety of military vehicles. These first systems will be mounted in Mine Resistant Ambush Protected (MRAP) vehicles. The Prophet builds off of earlier systems and combines Electronic Warfare (EW) and Signals Intelligence (SIGINT) capabilities. L3 and Northrop Grumman aid GD in building the Prophet.

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.

Marines examine MRAP lessons

October 5, 2009 by admin · Comment
Filed under: Syndicated Industry News 

NORTH CHARLESTON, S.C., Oct. 5 (UPI) -- The U.S. Marine Corps in a joint military effort examined the deployment of mine-resistant ambush-protected vehicles at its warfare center in South Carolina.

M-ATVs deployed to Afghanistan

October 1, 2009 by admin · Comment
Filed under: Syndicated Industry News 

WASHINGTON, Oct. 1 (UPI) -- The first set of more than 6,000 mine-resistant, ambush-protected all-terrain vehicles shipped to the battlefield in Afghanistan to support U.S. troops.

Thales Pitches New Australian MRAP

The market for Mine Resistant Ambush Protected (MRAP) vehicles has grown over the last five years incrementally. The United States and its Allies have bought thousands of the vehicles for operations in Iraq and Afghanistan where the major threat has been from mines and Improvised Explosive Devices (IED). The U.S. military is beginning its winding down of operations in Iraq which will mean less requirement for new MRAP vehicles. The U.S. has also awarded Oshkosh large contracts for a new MRAP-ATV to support their troops in Afghanistan. The world market though for these types of vehicles should be fairly solid as the IED has been demonstrated as a weapon of choice.

Thales in Australia has successfully marketed and sold their larger Bushmaster vehicle to both its home forces as well as The Netherlands for use in Afghanistan. Now it has developed the lighter Hawkei MRAP. This vehicle is targeted towards replacing tactical vehicles like the Land Rover or HUMVEE. It has removable armor to facilitate transportation and is configurable to conduct a variety of missions. Thales is hoping that the Australian military will invest in it to supplement their Land Rover vehicles as well as marketing it to other countries.

There is certainly will continue to be people willing to invest in these type of vehicles especially if it is priced competitively and offers some capabilities that other don’t.

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.

CVG selected to support MRAP production

September 21, 2009 by admin · Comment
Filed under: Syndicated Industry News 

NEW ALBANY, Ohio, Sept. 21 (UPI) -- Ohio-based Commercial Vehicle Group Inc. announced it has been selected to support a mine-resistant, ambush-protected vehicle program.

Army orders additional M-ATVs from Oshkosh

September 14, 2009 by admin · Comment
Filed under: Syndicated Industry News 

OSHKOSH, Wis., Sept. 14 (UPI) -- The U.S. Army has awarded Oshkosh Corp. a follow-on contract to deliver additional mine-resistant, ambush-protected all-terrain vehicles.

Plasan awarded armored kits follow-on

August 10, 2009 by admin · Comment
Filed under: Syndicated Industry News 

BENNINGTON, Vt., Aug. 10 (UPI) -- Plasan has received a follow-on subcontract to deliver additional armor kits for the U.S. Army's mine resistant ambush protected All-Terrain Vehicle.

Marines And Oshkosh Move Out On New Truck

The U.S. Marine Corps initiated a new program for Oshkosh Defense to build them a heavy, multi-purpose truck. The Logistics Vehicle System Replacement (LVSR) program is for a new tactical vehicle to perform a variety of roles.

The U.S. military had to invest heavily in Mine Resistant Ambush Protected (MRAP) and up armor their older tactical vehicles, like HUMVEES and trucks. This program will take advantage of that experience to develop and produce a new vehicle to carry out a variety of missions for the U.S.M.C. As the MRAP has had issues working in tactical situations this is another program to fix some of these issues. The contract is worth just over $700 million if all options are exercised. Right now the contract is for about 600 vehicles.

Like the MRAP-ATV program where there will be a lighter, more mobile vehicle developed to work the rougher terrain in Afghanistan the concept of this program is sensible. Oshkosh will stand to do well with this product if it works out and other services and countries buy it.

MRAP-ATV Contract Continues On Track

The MRAP-ATV is a program to develop a lighter, more maneuverable Mine Resistant Ambush Protected vehicle for use in Afghanistan. The Army has been working on awarding a production contract by the end of this quarter. Reports indicated that that will happen and one or more companies who are participating in the current testing will receive an order.

The Army and other Services have invested a great deal of money in the last five years into these systems to counter the IED and mine threat in Iraq and Afghanistan. The vehicles due to their size and weight primarily are road bound and provide point-to-point transport. The rougher terrain in Afghanistan and lack of roads has led to the MRAP-ATV requirement. The program has moved fast as basically all of the vehicles proposed are existing systems.

The winner(s) will see a great deal of work quickly as the military hopes to ramp up production and quantities very quickly. The use of MRAP and their force mix are all undergoing study as the U.S. tries to fit them into its regular tactical organizations and doctrine.

MRAP-ATV Moves Forward

In early March the Defense Department awarded a group of companies contracts to begin concept designs for the Mine Resistant Ambush Protected-All Terrain Vehicle (MRAP-ATV). Now it is being reported that the first production buy contracts may be awarded by May 1st. Crain’s Detroit Business says that the contracts had been delayed due to the short lived protest by Navistar. The Army plans to buy a small quantity of vehicles to do tests with and then order larger buys. The Defense Department had discussed in the past buying several of the proposed vehicles rather then focusing on just one.

This would mirror the experience had with the large MRAP vehicles bought for use in Iraq and Afghanistan to defeat the IED threat. Then due to the large quantities needed quickly several companies were able to win contracts. Part of this was that the U.S. military moved slowly first equipping engineering units and then the bulk of their infantry and other troops. This meant that the U.S.M.C and the Army bought different types for the missions. The MRAP-ATV will be used in Afghanistan where a lighter, more mobile off road vehicle is needed due to the rough terrain. This has been a more deliberate process then that used for the MRAP. Multiple contracts would allow faster equipping of units, but will also require a larger, more diverse logistical and training tail.

GAO states the obvious again

The GAO released a report stating that in their rush to purchase Mine Resistant Ambush Protected (MRAP) vehicles the services may have set themselves up for some long term costs that were avoidable. See the story here. No kidding. The USMC and Army were thrown money and direction by Congress to purchase as many MRAP as possible and rush them into service. Do you think that there were some thought and steps in the contracting process that could have been more thorough? In the long term neither service wants the MRAP, which was a knee jerk reaction to the IED threat anyway. They are not very mobile or tactical and there will be issues in the future trying to transport them to whatever the next battlefield is.

DoD buys bulk of MRAPs from other sources then Force Protection

Force Protection won just 1 percent of a contract for Mine Resistant Ambush Protected (MRAP) vehicles awarded on Friday. This is a big blow to the company, and they state they have enough current orders to keep going for 8 months. See Bloomberg.com here. This means that Force Protection, which basically arose out of the whole MRAP concept, must seek non-DoD customers to keep going. The MRAP had been used by South African forces for years in Rhodesia and other areas where mines were the biggest threat. Now that Improvised Explosive Devices (IED) are it really in Iraq the US Army and Marines have been buying them like crazy at Congress’s urging.

Oshkosh Defense Receives Orders from BAE Systems Valued at $24 Million to Supply TAK-4 Independent Suspension for MRAPs

OSHKOSH, Wis.--(BUSINESS WIRE)--Oshkosh Corporation (NYSE: OSK) announced today that its Defense division has received orders valued at $24 million to supply its TAK-4® independent suspension system for more than 300 BAE Systems USCS RG-33 Mine Resistant Ambush Protected (MRAP) vehicles. BAE issued the orders following the receipt of contracts awarded from the MRAP Joint Program Office. These are the latest in multiple deliveries Oshkosh Defense has received for its advanced independent sus

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Kongsberg Receives $336.5 Million Contract from U.S. Army for CROWS

WASHINGTON--(BUSINESS WIRE)--Last week, KONGSBERG received a contract valued at $336.5 million from the United States Army for the delivery of additional PROTECTOR Remote Weapon Stations (RWS) to be used in the M1A2 Abrams Modernization Program and on Mine Resistant Ambush Protected (MRAP) vehicles. This order is part of the $1.4 billion Common Remotely Operated Weapon Station (CROWS II) framework agreement signed in August 2007. “The Kongsberg CROWS II has been in use on multiple wheeled

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VSE Awarded $38 Million in Prime and Subcontracts to Provide Military Operational Readiness Support

ALEXANDRIA, Va.--(BUSINESS WIRE)--VSE Corporation (Nasdaq GS: VSEC) announced today that its Federal Group was awarded five prime/subcontracts recently totaling $38 million in support of various Department of Defense programs. The awards are all for work in support of missions in Iraq, Kuwait and Afghanistan to include: Mine Resistant Ambush Protected Joint Logistics Integrator (MRAP JLI) II for the Army and Marine Corps; Up-armoring support for High Mobility Multipurpose Wheeled Vehicles (FRAG6

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Navistar Defense Wins Foreign Military Sale from Israel

WARRENVILLE, Ill.--(BUSINESS WIRE)--Navistar Defense, LLC today announced that it has made a new foreign military sale to the Israel Ministry of Defense. Under the $12 million contract, Navistar will deliver 114 medium tactical vehicles by June 2010. In addition to the Israel contract, the company also received a second four-year, System Technical Support (STS) contract for up to $78 million to support its International® MaxxPro® Mine Resistant Ambush Protected (MRAP) vehicles. “

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Navistar Defense Awarded $752 Million Contract for MaxxPro Dash MRAP Vehicles

WARRENVILLE, Ill.--(BUSINESS WIRE)--Navistar Defense, LLC today was awarded a contract for $752 million to provide 1,050 enhanced International® MaxxPro® Dash Mine Resistant Ambush Protected (MRAP) vehicles. Vehicles under the award from the U.S. Marine Corps Systems Command will include the DXM™ independent suspension solution. “The threats that our warfighters face continue to change every day and we understand the urgency needed to rapidly engineer and deliver new Dash v

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Navistar Defense Showcases MaxxPro Dash with DXM Independent Suspension at AUSA

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Navistar Defense, LLC today will showcase its enhanced International® MaxxPro® Dash Mine Resistant Ambush Protected (MRAP) vehicle with DXM™ independent suspension for attendees at the 2010 Association of the United States Army (AUSA) Winter Symposium and Exposition. “The Dash with DXM independent suspension demonstrates our work in improved performance as we continue to bring our significant design force to bear on product improvemen

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