U.S. Army Lifts Stop Work Order on $6.7 Billion JLTV Production Contract

The U.S. Army Tank-automotive and Armaments Command (TACOM) Life Cycle Management Command (LCMC) has directed Oshkosh Defense, LLC, an Oshkosh Corporation (NYSE: OSK) company, to resume work on the Joint Light Tactical Vehicle (JLTV) production contract. The JLTV program fills a critical capability gap for the U.S. Army and Marine Corps by replacing a large portion of the legacy HMMWV fleet with a light vehicle that provides unprecedented protection, off-road mobility and transportability.

The U.S. Government Accountability Office (GAO) dismissed Lockheed Martin’s protest based on Lockheed’s notice that it intends to file a protest in the U.S. Court of Federal Claims. Shortly thereafter, the U.S. Army lifted the stop work order and instructed Oshkosh to resume performance of the JLTV contract. According to the JLTV production contract, Oshkosh will begin delivering vehicles within the next 10 months, reaching an expected total volume of nearly 17,000 vehicles, as well as kits and sustainment services over an eight-year period.

The JLTV Family of Vehicles is comprised of two seat and four seat variants, as well as a companion trailer (JLTV-T). The two seat variant has one base vehicle platform, the Utility (JLTV-UTL). The four seat variant has two base vehicle platforms, the General Purpose (JLTV-GP) and the Close Combat Weapons Carrier (JLTV-CCWC).