NAVISTAR DEFENSE AWARDED $752 MILLION CONTRACT FOR MAXXPRO DASH MRAP VEHICLES — Press Release
Filed under: Business Line, Companies, Contract Awards, Events, Press Releases, production program
NAVISTAR DEFENSE AWARDED $752 MILLION CONTRACT FOR MAXXPRO DASH MRAP VEHICLES
WARRENVILLE, Ill., (February 16, 2010) 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 vehicles to defeat emerging threats,” said Archie Massicotte, president, Navistar Defense. “We are constantly looking at enhancements across our vehicle portfolio to provide warfighters with the most advanced equipment.”
Under the new contract, MaxxPro Dash vehicles will incorporate the DXM™ independent suspension solution provided by Hendrickson Truck Suspension Systems and AxleTech International. This vehicle upgrade further improves the vehicle’s off-road capabilities, which is vital given Afghanistan’s lack of road infrastructure.
“After conducting an extensive trade study, we selected a no-compromises suspension system for our MaxxPro,” said Massicotte. “The design also minimizes the effort needed to integrate the system onto existing vehicles, which will accelerate the delivery of this important modification should the Army be interested in retrofitting our MaxxPro and 7000 Series fleets.”
Since May 2007, Navistar has received orders for a total of 7,494 MaxxPro MRAP vehicles to help combat improvised explosive devices (IEDs) and other threats. In late 2008, the company modified its design for added mobility and produced the MaxxPro Dash MRAP variant. The addition of an independent suspension solution further improves mobility and is one of several capability insertions that will be incorporated into the next 1,050 MaxxPro Dash units. Navistar also has provided more than 8,100 International® 7000 Series vehicles to the Afghan National Army and Afghan National Police.
Navistar will conduct work at its Garland, Texas, and West Point, Miss., assembly plants. Deliveries will begin in April and will be completed by the summer of 2010. Parts are not included in the contract.
Navistar International Corporation (NYSE: NAV) is a holding company whose subsidiaries and affiliates produce International® brand commercial and military trucks, MaxxForce® brand diesel engines, IC Bus™ brand school and commercial buses, Monaco RV brands of recreational vehicles, and Workhorse® brand chassis for motor homes and step vans. It also is a private-label designer and manufacturer of diesel engines for the pickup truck, van and SUV markets. The company also provides truck and diesel engine service parts. Another affiliate offers financing services. Additional information is available at www.Navistar.com/newsroom.
Rumor Of New MRAP Contracts For Afghanistan May Bouy Navistar
Filed under: BAE Systems, Business Line, Companies, Department of Defense, Events, Force Protection, Navistar, Oshkosh Truck Corp, Services, logistics, production program
An internal memo from within the Department of Defense some how leaked out. It states that in support of the U.S. operations in Afghanistan a further 2,500 Mine Resistant Ambush Protected (MRAP) vehicles will be required. Over the last two years the focus of acquisition for these kind of vehicles has been the Oshkosh produced MRAP-AT which was the result of the MRAP-All Terrain Vehicle (ATV) contest. The MRAP-ATV requirements were for a lighter, more maneuverable vehicle able to operate better in Afghanistan’s rough terrain.
Navistar was unable to win the MRAP-ATV contest and have missed out on the several hundred million dollars worth of orders for those vehicles. If the memo is correct an order for over one thousand of their MRAP type vehicles for use in Afghanistan will be welcome. The U.S. military has spent a great deal on MRAPs to serve in Iraq and Afghanistan over the last five years. They now possess significant numbers of them and will use them for several years to come. There will be little need to buy more of them and this will affect Navistar, BAE Systems and Force Protection all who ramped up production to meet demand.
Navistar Continues Foreign Sales Of Systems
Navistar announced that it has been able to sell tactical vehicles to Israel. Despite not winning the U.S. MRAP-ATV contract these kind of sales...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
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.
Navistar To Provide More Trucks To U.S. Army
Filed under: Business Line, Companies, Contract Awards, Events, Mississippi, Navistar, Oshkosh Truck Corp, Services, U.S. Army, logistics, production program
The United States military has expended a great deal of logistics and support vehicles in Iraq and Afghanistan. These trucks have taken a beating both from heavy use and enemy attacks. The Army has let several contracts recently to repair, reset and replace them. Yesterday it was announced that Navistar would be awarded a contract to provide tanker trucks, wreckers and generic troop transport vehicles. The value of this contract is over $400 million.
Navistar was disappointed that it did not win a portion of the MRAP-ATV contract to provide the lighter vehicles for use in Afghanistan. That contract went to Oshkosh. This contract will offset some of the losses from not contributing to that effort. It also demonstrates that the U.S. has been able to grow a decent industrial base when it comes to logistic support vehicles.
Oshkosh Keeps Winning
Filed under: BAE Systems, Business Line, Companies, Contract Awards, Department of Defense, Events, Navistar, Oshkosh Truck Corp, Services, U.S. Army, logistics, production program
Fresh off of winning two contracts for the new MRAP-ATV worth over a billion dollars for use in Afghanistan Oshkosh announced that they had won two smaller contracts. These are only worth about $36 million but indicate that the company is showing some strength. The first is for heavy trucks to support U.S. Army engineering troops. The second is to treat Army tanker trucks to protect against rupturing and burning fuel during transport.
The MRAP-ATV contract is probably the last major contract for these types of vehicles. The win by Oshkosh has already caused ripples through out the industry with Navistar and BAE Systems losing work and jobs. The U.S. military is thinking now how to fit the existing MRAP vehicles purchased for Iraq into their tactical organizations. The MRAP-ATV will be lighter and more maneuverable to support operations in rougher terrain.
MRAP-ATV Fallout Leads To Navistar Layoffs
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, Mississippi, Navistar, Restructuring, Services, production program
Oshkosh won the MRAP-ATV contract for a new vehicle for use in Afghanistan. One of the losing bidders was Navistar who had sold several thousand MRAP vehicles for use in Iraq to the U.S. Department of Defense.
Now with the fact that they did not win the contract to build the new vehicles for use in Afghanistan the company has announced layoffs at their Mississippi plant. This illustrates one of the problems with defense contracting. If you don’t continue to win contracts to provide systems or services you will eventually wither. Defense acquisition is normally for a certain number of units or for a period of time that will end. Companies win or lose contracts and that leads to contractions or expansions in work forces.
MRAP-ATV Moves Forward
Filed under: BAE Systems, Business Line, Companies, Congress, Contract Awards, Department of Defense, Events, Force Protection, Navistar, Oshkosh Truck Corp, Proposal, Protest, Services, U.S. Army, U.S. Marine Corps, development program, logistics, production program
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.
Canadian Government Fights Back on Foriegn Contracts
Filed under: Business Line, Canada, Companies, Contract Awards, Countries, Events, General Dynamics, IT, Thales
The Canadian government of Mr. Harper has received criticism from the domestic defense industry and legislators that it has not been awarding enough contracts to Canadian companies. Part of the issue is that the last two major contracts for C-17 and C-130 aircraft had to go to American companies who are the producers of those aircraft. A more recent award for trucks though went to an American company Navistar when the product was available in Canada. The Vancouver Sun is reporting that the administration is trying to mollify its critics by awarding tow major contracts to Canadian companies. The two new contracts are for upgrades to command and control systems and will be awarded to Canadian subsidiaries of Thales and General Dynamics. Even so the work will be done in Canada and employ Canadians. One of the problems that affects defense contracting, especially for smaller countries, is that it may be hard to do the work domestically. India for example has invested billions into its industry but still has to turn to foreign suppliers for large, complicated programs.
New MRAP Proposal Submitted by Oshokosh
Filed under: BAE Systems, Business Line, Companies, Department of Defense, Events, Force Protection, Industry Analysis, Navistar, Oshkosh Truck Corp, Proposal, development program, logistics, production program
As was written about at BNET: Government the U.S. military is moving forward with a new generation of MRAP vehicles that will be lighter and more maneuverable for Afghanistan. The Business Journal of Milwaukee writes that Oshkosh submitted its proposal on 9 January for the program. Oshkosh along with BAE, Navistar and Force Protection would seem to be the main contenders for the program. The MRAP-All Terrain Vehicle program will be managed like the recent JLTV award for multiple development contracts with a test and evaluation program for different vehicles. More then one successful design may be awarded production contracts as the program goes.
Canada Buys American Trucks from Navistar
Filed under: Business Line, Canada, Contract Awards, Countries, Navistar, logistics, production program
Canada’s Government announced that they had placed a $274 million Canadian order with Navistar for 1,300 trucks to support operations in Canada. The Commercial Off-the-shelf (COTS) order was to replace aging trucks currently in use. The Gazette reports that there has been some criticism of the Government for buying American over vehicles made in Canada. The U.S. buys a great deal of equipment made in Canada, and many U.S. companies like Bell Helicopter and the “Big 3″ automakers have plants in Canada. The contract also requires Navistar to purchase $274 million in offsets which for a start will include the tires the trucks roll on. The U.S. and Canadian economies in many ways are integrated, so Canada turning to a U.S. company is not necessarily like buying from Europe or Asia.
UK Buys More MRAP Vehicles
Filed under: Contract Awards, England, Navistar, logistics, production program
Navistar was awarded a contract by the Ministry of Defence to build MRAP vehicles. See the Chicago Tribune for the report. Like the US military the UK has put increasing amounts of funding into their MRAP fleet. The major threat in Iraq and Afghanistan remains IED and mines and the MRAP is designed to minimize the damage from these attacks. Even though Iraq may be winding down there is still a requirement for vehicles to support operations in Afghanistan.
Army announces JLTV teams
Filed under: AM General, BAE Systems, Contract Awards, Department of Defense, General Dynamics, Lockheed Martin, Navistar, U.S. Army, development program, logistics, production program
See Crain’s Detroit Business for the story.
Cross posted at BNET.
Navistar gets logistic vehicle contracts
Filed under: Contract Awards, Navistar, U.S. Army, logistics, production program
Navistar was awarded two contracts by the Army to provide tactical support vehicles. These include one contract for tankers to carry fuel, oil and water. The vehicles are for use in Iraq and Afghanistan. Navistar has won several contracts to provide these kind of vehicles. One would have to assume that over the past seven years the Army has used a lot of these vehicles beyond what the originally intended. They will require either replacement or recapitalization, where they are rebuilt and retrofitted to be like a new one.
See the press release at MarketWatch.com.
Marines buy more MRAP vehicles
Filed under: Contract Awards, Mississippi, Navistar, U.S. Marine Corps, production program
The USMC awarded Navistar a contract to purchase more of their new, lighter vehicles. The contract is worth about $750 M and will buy 800 or so vehicles. The trend in recent MRAP buys has been to get smaller and less bulky vehicles for service in Iraq and Afghanistan. The Marines especially have cut back on MRAP buys and moved away from the original vehicles.
Navistar makes the MRAP in Mississippi and the press release can be found at The Wall Street Journal’s MarketWatch.com site here.
Navistar wins contract to build trucks for US Allies
Filed under: Contract Awards, Iraq, Navistar, U.S. Army, afghanistan, logistics
The US Army awarded Navistar a contract for 7,000 odd trucks for the Afghan and Iraqi governments. The value of the contract is over $1B. See the press release here. This is on top of a previous award for vehicles and support for the US Army. Navistar is also bidding as part of one of the teams for the JLTV.
Navistar Defense and Tatra Form Strategic Alliance
Filed under: Syndicated Industry News
Navistar Defense Receives New Vehicle Orders; MRAP Engineering Contract
Filed under: Syndicated Industry News
Navistar Defense Wins Foreign Military Sale from Israel
Filed under: Syndicated Industry News
Navistar Defense Awarded $752 Million Contract for MaxxPro Dash MRAP Vehicles
Filed under: Syndicated Industry News
Navistar Defense Showcases MaxxPro Dash with DXM Independent Suspension at AUSA
Filed under: Syndicated Industry News
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