MRAP-ATV Fallout Leads To Navistar Layoffs
July 13, 2009 by Matthew Potter · Comment
Filed under: Business Line, Companies, Contract Awards, Department of Defense, Events, Mississippi, Navistar, Restructuring, Services, production program
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.
Canadian Frigate Spill Over
November 11, 2008 by Matthew Potter · Comment
Filed under: Canada, Contract Awards, IT, Lockheed Martin, development program
Filed under: Canada, Contract Awards, IT, Lockheed Martin, development program
Most large procurment programs result in many sub-contracts and work for a variety of companies other then the prime. The Chronicle Herald of Canada reports on the expansion that Lockheed Martin is planning to do in Halifax in support of development of the Command and Control system for the new Canadian frigates. Lockheed Martin and its sub-contractors will not only be hiring a decent amount of new employees but a whole new building will be constructed to house them and complete the work. This is typical of of the spill over effect that can be achieved by these types of contract; and shows why localities are always vying for this kind of work. The downside is thought that when the work is complete there may be no follow on and then everything just shuts down. Contractors like a steady stream of work rather then a great deal for a short period of time.
Even small contracts make a difference
April 6, 2008 by Matthew Potter · Comment
Filed under: Contract Awards, U.S. Army, logistics, production program
Filed under: Contract Awards, U.S. Army, logistics, production program
Here is a little article about the Army buying safety gloves. Even this small contract, no value given, will allow the company to hire more workers and invest in machinery. Of course the problem with these kind of contracts is unless the supplier can find new commercial customers or get a continuous stream of DoD orders the jobs will end in a set period of time. Read more
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