Lockheed Martin Corp. files protest over U.S. Army's award of a $30B project to Oshkosh Corp

Lockheed Martin Corp said on Tuesday that the company is seeking to overturn billions dollar armored vehicle contract that the U.S. Army awarded to Oshkosh Corp. Lockheed Martin Corp had filed an official report to the U.S. Government Accountability Office (GAO). GAO had confirmed the filed protest and is said to have until December 17 to make a decision.

Bloomberg reported that through the $6.75 billion contract, Oshkosh Corp will provide the army with 17, 000 Joint Light Tactical Vehicle (JLTV) replacing the Humvee. The contract could be worth much more since the U.S. Army is planning to order up to 55, 000 unit over the next 25 years. Bloomberg reported that the potential total value of the program could worth $30 Billion.

The army decision to replace current Humvee because the new warfare required them to have a vehicle able to withstand the most destructive improvised bombs which are being widely use in Middle East war.

Another company that joined the bid for the contract, AM General who had been supplying the army with Humvee, will not make any appeal to GOA. The company said in a statement that "AM General continues to believe that the BRV-O was the right choice for JLTV".

However, AM General views the filing of a protest as a potential distraction from its current growth business area.

Recently, AM General had won a six-year contract worth $428 million to supply their new M997A3 Humvee Ambulance to the National Guard as reported by Crain's Detroit Business.

All three companies had submitted a total of 22 prototype vehicles for testing by the U.S Army for more than a year. Oshkosh Corp said in a statement cited by Journal Sentinel that the company believes that it will not lose the contract as the army had done a thorough investigation and testing for each vehicle.

The production of the JLTV will be put on hold until the result of the protest is known. Oshkosh is planning to produce 3,000 vehicles per year to meet the contract demand and it will hire 100 more new workers to work at company's base in Wisconsin.

Companies protesting over a contract awarded by the U.S government is not unusual. According to a report, there has been 2.4 percent protest filed over Defense Department contract from the fiscal year 2010 to 2014. Boeing protest over Air Force contract for its aerial refuelling tanker in 2008 saw the company winning the case and get the contract which was previously awarded to Northrop Grumman Corp.

The Lockheed Martin Corp. is in the first ranking for company manufacturing army related product while Oshkosh Corp is falling behind in the top 100 list. The company have been dealing and manufacturing lots of product for the U.S Army in the past and believe that vehicle produce it is producing will meet the U.S Army requirement.