{"id":33349,"date":"2023-03-30T16:01:35","date_gmt":"2023-03-30T16:01:35","guid":{"rendered":"https:\/\/one.sightlinemg.com\/federaltimes\/uncategorized\/2023\/03\/30\/oshkosh-to-shutter-jltv-line-next-year-if-protest-fails\/"},"modified":"2026-08-08T00:41:53","modified_gmt":"2026-08-08T00:41:53","slug":"oshkosh-to-shutter-jltv-line-next-year-if-protest-fails","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/federaltimes\/govcon\/contracting\/2023\/03\/30\/oshkosh-to-shutter-jltv-line-next-year-if-protest-fails\/","title":{"rendered":"Oshkosh to shutter JLTV line next year if protest fails"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">HUNTSVILLE, Ala. \u2014 Oshkosh Defense is preparing to close its Joint Light Tactical Vehicle production line by the end of 2024, after the Army earlier this year selected <a href=\"https:\/\/www.defensenews.com\/industry\/2023\/02\/10\/am-general-unseats-oshkosh-to-build-joint-light-tactical-vehicle\/\" target=\"_blank\">AM General<\/a> to take over production of the Humvee replacement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Wisconsin-based Oshkosh is still holding out hope the Army\u2019s decision might be overturned, company President Tim Bleck, told Defense News in an exclusive interview March 22. The <a href=\"https:\/\/www.defensenews.com\/land\/2023\/03\/07\/oshkosh-files-protest-over-armys-light-tactical-vehicle-award\/\" target=\"_blank\">company in February filed a protest<\/a> with the Government Accountability Office over the Army\u2019s award.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cWe\u2019ve got a workforce that <a href=\"https:\/\/www.defensenews.com\/land\/2019\/06\/21\/after-delay-army-clears-joint-light-tactical-vehicle-for-full-rate-production\/\" target=\"_blank\">will produce these vehicles <\/a>through the end of 2024,\u201d Bleck said, adding that the company can accept orders until around the end of November 2023. Oshkosh has multiple foreign customers, including Montenegro, Brazil, Slovenia and Lithuania. Belgium, North Macedonia and Romania have said they will buy the vehicles.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The company is now weighing what to do with its workforce. Oshkosh is weighing opportunities to transfer its<b> <\/b>JLTV line to another product, Bleck said<b>, <\/b>but should an opportunity arise to build JLTVs once again down the road, \u201cit\u2019s hard to go back to tactical wheeled vehicles once you fill up the facility with something else.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.defensenews.com\/land\/2021\/11\/04\/new-am-general-chief-vows-to-put-the-full-weight-of-the-organization-into-pursuing-jltv\/\" target=\"_blank\">AM General <\/a>has said it has 18 months \u2014 equating to a rough start time of August 2024 \u2014 to begin building new JLTVs. This start time<b>, <\/b>designated by the Army, is meant to avoid production gaps.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Army\u2019s contract to AM General is worth<b> <\/b>about $8.66 billion for 20,682 JLTVs and 9,8333 trailers. AM General, which has been owned by private-equity firm KPS Capital Partners since 2020, is now setting up its infrastructure at its 96-acre Mishawaka Manufacturing Campus in Indiana.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.defensenews.com\/industry\/2015\/08\/25\/oshkosh-wins-jltv-award\/#:~:text=Oshkosh%20won%20a%20%246.7%20billion%20low%20rate%20initial,Wisconsin%2C%20with%20deliveries%20beginning%2010%20months%20after%20award.\" target=\"_blank\">Oshkosh won the JLTV contract in 2015 <\/a>to replace the aging Humvee fleet, beating out both Humvee-maker AM General and competitor Lockheed Martin.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The original JLTV competition included a requirement for the Army to own the technical data package with the idea that it would potentially hold new competitions to continue building the vehicle. In the latest competition, the service added some new requirements, including corrosion protection, improved fuel efficiency and anti-idle technology as well as lithium-ion batteries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The GAO is expected to render a decision on the protest in June.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">According to a redacted copy of the protest obtained by Defense News,<b> <\/b>Oshkosh contends the Army took \u201cglaring risks\u201d by selecting AM General, noting the company has \u201czero experience manufacturing the JLTV\u201d and \u201cby its own admission, must build out its own facilities before it can start production.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Oshkosh says in the protest the Army did not appropriately consider AM General\u2019s financial capacity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cAs other parts of the business are expected to have a temporary recovery, supply chain troubles and inflation will continue to place extreme burdens on cash availability forcing the organization to incur additional debt and increased credit risk,\u201d the document reads. \u201cThis financial risk in conjunction with performance and schedule risk inherent with a new program mean [AM General] will continue to be a high credit risk until 2026 or beyond.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">On cost evaluation, Oshkosh writes in its protest that AM General \u201cwas proposing labor categories that were not appropriate for the work to be performed. Accordingly, the Army would have recognized the rates as unrealistic and made an upward adjustment.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Additionally, the protest states that AM General \u201clacks the existing supplier relations needed to manufacture the JLTV.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">From the beginning Oshkosh has been focused \u201con driving our costs down through the supply chain, focused on continuous improvements and saving every penny that we could knowing that there would be a recompete seven years later, so we were laser focused on that,\u201d Bleck said. \u201cWhen we saw the other competitor\u2019s proposal price, we said we couldn\u2019t even touch that, we would incur a significant amount of losses at their proposal price.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oshkosh Defense will end the JLTV line next year unless the Government Accountability Office overturns the Army&#8217;s decision to switch manufacturers.<\/p>\n","protected":false},"author":7,"featured_media":29414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":60,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[60,12,31],"tags":[],"coauthors":[3304],"class_list":["post-33349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-contracting","category-govcon","category-home"],"acf":{"subheadline":"","legacy_arc_id":"XK4TODUHWZH2DKXEGC5S73PFPA","arc_canonical_url":"\/land\/2023\/03\/30\/oshkosh-to-shutter-jltv-line-next-year-if-protest-fails\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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