DoD Awards Huge M-ATV Contract

WASHINGTON - Oshkosh Corp. won a $1.06 billion Army contract to build new, off-road terrain vehicles to outfit ground forces in Afghanistan, the Pentagon said late Tuesday.

The Oshkosh, Wis.-based vehicle maker beat out three teams for the deal to build 2,244 vehicles, including: BAE Systems, the U.S. subsidiary of subsidiary of British defense conglomerate BAE Systems PLC, Navistar International Corp., and Force Dynamics, a joint venture between Force Protection Inc. and General Dynamics Corp.

The military has said it needs a hybrid armored vehicle to provide the same type of protection as mine-resistant, ambush-protected vehicles that have been used in Iraq. But it must be far more agile, lighter and provide increased maneuverability to handle Afghanistan's rocky terrain.

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The Defense Department has previously said it could buy between 2,080 and 10,000 of the so-called MRAP-All Terrain Vehicles for use by the Army and Marine Corps.

Because of the urgent demand by the Pentagon for these vehicles, Oshkosh said it began daily production on its manufacturing line a few weeks ago.

"We and our suppliers have already made significant investments in materials and are well positioned to accelerate our manufacturing capabilities," said Andy Hove, Oshkosh executive vice president and president of the company's defense unit, in a statement.