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U.S. ARMY Awards $6.7bn JLTV Contract to Oshkosh Corporation

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24 Aug 15. The U.S. Army Tank-automotive and Armaments Command (TACOM) Life Cycle Management Command (LCMC) has awarded Oshkosh Defense, LLC, an Oshkosh Corporation (NYSE: OSK) company, a $6.7 billion firm fixed price production contract to manufacture the Joint Light Tactical Vehicle (JLTV).  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 tactical vehicle with far superior protection and off-road mobility.  During the contract, which includes both Low Rate Initial Production (LRIP) and Full Rate Production (FRP), Oshkosh expects to deliver approximately 17,000 vehicles and sustainment services.

“Following a rigorous, disciplined JLTV competition, the U.S. Army and Marine Corps are giving our nation’s Warfighters the world’s most capable light vehicle – the Oshkosh JLTV,” said Charles L. Szews, Oshkosh Corporation chief executive officer.  “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.”

The JLTV program provides protected, sustained and networked light tactical mobility for American troops across the full spectrum of military operations and missions anywhere in the world.  The JLTV production contract awarded to Oshkosh includes a base contract award and eight option years covering three years of LRIP and five years of FRP.  Oshkosh will begin delivering vehicles approximately ten months after contract award.

 

“Because of the JLTV program, our Soldiers and Marines are getting a level of technical performance that no other vehicle can match,” said U.S. Army Major General (Retired) John M. Urias, executive vice president of Oshkosh Corporation and president of Oshkosh Defense.  “Our JLTV has been extensively tested and is proven to provide the ballistic protection of a light tank, the underbody protection of an MRAP-class vehicle, and the off-road mobility of a Baja racer.  The Oshkosh JLTV allows troops to travel over rugged terrain at speeds 70% faster than today’s gold standard, which is our Oshkosh M-ATV.  Looking to future battlefields, we know that our troops will face a myriad of threats.  Soldiers and Marines can be assured that the highly capable Oshkosh JLTV will perform the mission.”

 

The JLTV Family of Vehicles is comprised of two variants, a two seat and a four seat variant, 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).

The Oshkosh JLTV combines the latest in automotive technologies with the Oshkosh CORE1080 crew protection and TAK-4i™ independent suspension systems to provide next generation performance.  In designing its JLTV, Oshkosh leveraged its extensive experience producing and sustaining more than 150,000 heavy, medium and protected MRAP vehicles for the U.S. and its allies.

 

The Oshkosh JLTV Journey

2005:  Oshkosh begins developing its next generation TAK-4i independent suspension system

2007:  Oshkosh develops the Light Combat Tactical Vehicle (LCTV) technology demonstrator

2010:  The Oshkosh LCTV is the first military-class vehicle to complete the Baja 1000 desert off-road race

2011:  Oshkosh evolves its design and introduces the Light Combat Tactical All-Terrain Vehicle (L-ATV), the platform for the Oshkosh JLTV solution

2012:  U.S. Government awards Oshkosh one of three JLTV Engineering and Manufacturing Development (EMD) contracts in August

2013: Oshkosh builds its JLTV EMD prototypes on a warm production line and delivers them to the U.S. Army for EMD testing and evaluation

2014: During EMD, Oshkosh successfully completes all requirements, testing and evaluation

2015:  Oshkosh responds to the U.S. Government’s JLTV Production Request for Proposal in February and Request for Final Proposal Revisions in July

2015: Oshkosh is awarded the JLTV Production contract

“Developing our Oshkosh JLTV solution has been an incredible journey,” said Szews.  “For the past decade, our entire team has been focused on putting our troops behind the wheel of the world’s most capable light vehicle.  It’s our relationship with our troops and our deep appreciation for their service that inspires our best work every day.  I offer my sincere thanks to our employees and suppliers for their years of dedication to reach this historic day.”

BATTLESPACE Comment: The JLTV saga comes to an end! BATTLESPACE has covered the development of the JLTV vehicle from inception thru the competition to contract award yesterday. The contract award to Oshkosh of the M-ATV and L-ATV gave the Company a huge advantage over Lockheed and AM General as it gave them numbers of vehicles in service with a long line of service, support and compatibility for the eventual JLTV award. Another pointer to the US desire to streamline its vehicle procurement was the award of the FMTV contract taking it away from BAE Systems. This now gives the US Army and USMC a one stop shop from heavy vehicles such as HEMTT, PLS, FMTV thru M-ATV, L-ATV to JLTV.

Lockheed’s development of its JLTV offering from the purchase of the HMT suspension technology to the full development and building of its trails vehicles showed how a non-vehicle Company can start from scratch and continue up to the end. The AM General vehicle never looked right and this loss will be a big blow to AM General for future sales in the US and across the world. Lockheed has learned a lot about light vehicles so don’t rule them out for future competitions or contract modifications.

Now JLTV has been awarded by the DoD, the next stage will be overseas sales which Oshkosh will be having a major push with the UK being one country eyeing the final award with interest for its M-RVP Requirement.

On a global basis, the JLTV award puts a new emphasis on survivability on the battlefield, a process which started with the attrition suffered by the US with unarmoured HUMVEES and the British with SNATCH and soft skinned Land Rovers and Pinzgauers.

Expect a big shift by the major powers to JLTV-like vehicles away from soft skinned and pick up type vehicles on the battlefield to smaller fleets of JLTV-like vehicles with a Training and Tactical Fleet.

The next big Requirement will be the replacement of the HMMVs sued on US and overseas bases and the Land Rover Wolf Replacement in the UK expected in 2030, with some coming out before then. The UK is looking at a White Fleet type solution in leasing rather than buying, whilst the US usually buys. Look to Mercedes to offer their ‘G’ Wagen for these Requirements.

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