The U.S. Army awarded Oshkosh Defense a $6.7 billion contract for a new tactical vehicle to replace its aging fleet of Humvees, Oshkosh Corp. has announced.
During the lifetime of the contract, Oshkosh Defense is expected to deliver up to 17,000 of its Joint Light Tactical Vehicle to the military. The JLTV has been in development since 2005.
The JLTV production contract includes a base contract award and eight option years covering three years of Low Rate Initial Production and and five years of Full Rate Production. Oshkosh will begin delivering vehicles approximately ten months after contract award.
“Oshkosh is honored to be selected for the JLTV production contract, which builds upon our 90-year history of producing tactical wheeled vehicles for U.S. military operations at home and abroad. We are fully prepared to build a fleet of exceptional JLTVs to serve our troops in future missions,” says Charles L. Szews, Oshkosh Corp. chief executive officer.
The JLTV contract marks a major win for Oshkosh Defense after several of its larger contracts had been fulfilled and the company had scaled back its workforce and supplier network. As a result of that scaling back, the New North region has recently embarked on a project to diversify its supply chains to supply chain networks to ease the economic shocks from the ebb and flow of major military contracts. Efforts include an enhance aviation industry and the newly launched Supply Chain Marketplace.
Read more about the JLTV contract and Oshkosh Defense