Oshkosh [OSK] has been awarded a $6.7 billion contract to build the Joint Light Tactical Vehicle (JLTV), which replaces large portions of the Army and Marine Corps Humvee fleets.
Oshkosh’s light combat tactical all-terrain vehicle (L-ATV) beats out incumbent Humvee manufacturer AM General and a Lockheed Martin [LMT]-BAE Systems team for the enormous contract to build the first 17,000 of more than 55,000 JLTVs for the Army and Marine Corps.
It is one of the few vehicle programs to weather a financially unstable Pentagon and emerge from dual drawdowns in Iraq and Afghanistan relatively unscathed. It is also the first new-start full-fleet vehicle contract award in decades.
The Army and Marine Corps will procure approximately 17,000 vehicles under this initial contract, with a decision on full-rate production by the Department expected in FY ’18. Procurement of 5,500 USMC vehicles are front-loaded into the JLTV production plan.
The L-ATV is a lighter cousin of the MRAP all-terrain vehicle, which Oshkosh said is already performing the Army’s desired mission profile in the field by providing MRAP-level protection and Humvee-type mobility. No stranger to building military trucks, Oshkosh holds contracts for both heavy and medium tactical vehicles in the thousands, not to mention being one of several companies that surged MRAPs into Iraq and Afghanistan to protect troops from roadside bombs.
“With America’s Soldiers and Marines in mind, the program team successfully met both Services’ requirements for affordable, achievable capability advancements that will make a true difference,” Sean Stackley, assistant secretary of the navy for research, development, and acquisition, said in a prepared statement. “Today’s award brings us a step closer to delivering a flexible vehicle that balances the payload, performance, and protection critical in the operating environments of today and tomorrow.”
Photo: Oshkosh Defense
The award marks the end of a long road that began before 2008, when eight teams proposed technology demonstration vehicles to replace the workhorse Humvee, which had proved totally inadequate to withstand improvised explosive devices (IED) in Afghanistan and Iraq. Heavy casualties prompted innumerable aftermarket armor upgrades that eventually began to weigh down and wear out the Humvee.
The Army’s desire was to find maneuverability on par with the existing Humvee, but with blast protection equal to that of the much larger and heavier mine-resistant, ambush-protected (MRAP) vehicle. The Humvee, built by AM General, entered service in 1985, before IEDs became the go-to weapon for insurgents, terrorists and non-state actors, particularly against the technologically superior U.S. military.
The list of JLTV competitors was pared to five and then to three for the engineering and manufacturing development (EMD) phase, after which final proposals for production vehicles were delivered early this year.
The contract was a huge leg up for Oshkosh, given the enormous production figures involved. The Army plans to buy 49,909 JLTVs between fiscal year 2015 and fiscal 2040. Another 5,500 vehicles will go to the Marine Corps beginning in fiscal 2015 with the last one delivered before fiscal 2021.
DoD requested $457 million in fiscal year 2016 for JLTV, enough to procure a total low-rate initial production (LRIP) buy of 559 vehicles: 445 for the Army and 109 for the Marine Corps. LRIP is slated to begin in the first quarter of fiscal year (FY) 2016.
Under the 3-year low rate initial production (LRIP) portion of the contract,Oshkosh will build 17,000 vehicles for the Army and Marine Corps combined. It will then begin a five-year full-rate production period.
The Army’s tactical wheeled vehicle strategy sets fiscal 2018 as the date by which the first unit must be equipped with JLTVs. Initial USMC operating capability is expected in Fiscal Year 2018 with fielding to the Marine Corps complete in Fiscal Year 2022. The fleet should be 77 percent fielded by fiscal 2035 to meet the final fielding date of fiscal 2040.
JLTV manufacturing will be performed in Oshkosh, Wis., with deliveries beginning 10 months after award. A full-rate production decision is expected in Fiscal Year 2018.