Defense Update News:

Oshkosh Awarded Over $1.2 Billion Contract to Supply the US Army with FHTV Heavy Trucks

The U.S. Army Tank-automotive and Armaments Command (TACOM) awarded Oshkosh Defense (a division of Oshkosh Corporation NYSE:OSK) an order for the supply of more than 6,000 upgraded vehicles to the U.S. Armys Family of Heavy Tactical Vehicle (FHTV) fleet. The upgraded FHTV family of vehicles includes increased horsepower and performance features due to power-train and suspension upgrades. All three vehicle families will be Long Term Armor Strategy (LTAS) compliant and come off the assembly line fitted with upgraded suspensions and integral composite (“A” kit) armor. They also will be ready to receive an add-on (“B” kit) armor appliqué. (more...)

The first order under the new three-year contract is valued at $1.2 billion and delivery will start in November 2008. This order follow earlier contracts awarded this year for initial delivery of 1700 heavy trucks. This award somewhat sweetens the bitter news for the company this week, as the Oshkosn-Northrop Grumman team failed the selection for the technology demnostration selection phase of the Joint Light Tactical Vehicle competition (JLTV).

FHTV III variants include the 13 ton payload Heavy Expanded Mobility Tactical Trucks (HEMTT), 16.5 ton payload Palletized Load Systems (PLS) and PLS trailers (PLST), and Heavy Equipment Transporters (HET) capable of transporting main battle tanks and other tracked combat vehicles weighing up to 70 tons. As part of the contract, Oshkosh Defense will supply the U.S. Army with the next-generation HEMTT, the HEMTT A4, and will soon introduce the A1 models of the PLS and HET, offering increased horsepower and performance features due to power-train and suspension upgrades.

Earlier this week Oshkosh was awarded a $46 million contract by the US Marine Corps Systems Command, for the supply of 173 Medium Tactical Vehicle Replacement (MTVR) and their armor kits.