OSHKOSH, Wis. — Wisconsin-based Oshkosh Corp. won a major contract Tuesday to build a new combat vehicle to replace a large share of the U.S. military’s Humvee troop carriers.
The Department of Defense awarded the Joint Light Tactical Vehicle contract to Oshkosh Defense, one of three firms that were finalists for the work. The $6.7 billion contract is expected to support thousands of jobs.
Oshkosh Defense beat out Maryland-based Lockheed Martin and Indiana-based AM General for the contract. Pentagon officials declined to say why they chose Oshkosh over its competitors.
The Army and Marine Corps plan to buy as many as 55,000 JLTVs by 2040. Nearly 49,100 would be built for the Army, with 5,500 going to the Marines. The vehicle is designed to provide more protection against roadside bombs and mines than Humvees without being as big as another military vehicle produced by Oshkosh, the Mine Resistant Ambush Protected vehicle, or MRAP.
Lockheed had said it would build the vehicle at its Camden facility in Arkansas, and state lawmakers there dangled an $87 million incentive package.
It’s not clear whether Wisconsin or Indiana offered any incentives, but union workers at Oshkosh in 2013 agreed to a contract extension so that the company could nail down its labor costs for the project.
The contract is a timely boost for Oshkosh, which eliminated about 760 jobs last year because of declining defense spending. The company plans to build the vehicle in Oshkosh, with deliveries beginning in 10 months.
Lockheed and AM General have 10 days to file formal protests over the award. Both companies issued statements saying they’re gathering information and considering their options.
