Navistar Defense LLC, an affiliate of Navistar International Corp. [NAV], yesterday saidithas expanded its military vehicle portfolio with a new application based on its International 5000 Series platform.

The U.S. Army awarded Navistar Defense an $11 million contract to provide the heavy equipment transporter and trailer combination and spare parts to the Iraqi Ministry of Defense.

Approximately 40 tractor and trailer combination vehicles will be produced and delivered in fiscal year 2009.

The Army TACOM Life Cycle Management Command contracted Navistar Defense to answer a specific request for a vehicle to transport the Iraqi military’s heavy equipment, which includes Russian T-72 tanks.

Leveraging Navistar’s recently announced strategic-alliance relationship with Caterpillar [CAT] these vehicles will include proven Caterpillar C-15 engines.

“Navistar’s strong performance in rapidly providing quality vehicles and reliable service to defend against evolving threats has positioned us as a leader in the defense industry,” Bob Walsh, vice president, Navistar Defense, said. “We will continue to leverage our design and manufacturing expertise and explore new vehicle applications to help meet the mission needs of the U.S. military and its allies.”

Navistar will supply all required spare parts necessary to support several years of scheduled maintenance.