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Lockheed Martin Claims Secret Documents Could Have Swayed GAO JLTV Decision In Its Favor

Lockheed Martin Claims Secret Documents Could Have Swayed GAO JLTV Decision In Its Favor
Lockheed Martin’s JLTV offering. Photo: Lockheed Martin

Lockheed Martin [LMT] claims a trove of documents and data that only recently came to light could salvage its bid to build thousands of tactical trucks for the Army and Marine Corps.Lockheed Martin already had filed a complaint with the GAO over the $6 billion Joint Light Tactical Vehicle (JLTV) program contract award to Oshkosh Defense [OSK]. The revelation of undisclosed Army data spurred the company to take its case to federal claims court, circumventing the standard protest procedure through the Government Accountability…

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Lockheed Martin Claims Secret Documents Could Have Swayed GAO JLTV Decision In Its Favor

Lockheed Martin [LMT] claims a trove of documents and data that only recently came to light could salvage its bid to build thousands of tactical trucks for the Army and Marine Corps.

Lockheed Martin already had filed a complaint with the GAO over the $6 billion Joint Light Tactical Vehicle (JLTV) program contract award to Oshkosh Defense [OSK]. The revelation of undisclosed Army data spurred the company to take its case to federal claims court, circumventing the standard protest procedure through the Government Accountability Office.

On Dec. 17, Lockheed Martin filed a bid protest with the U.S. Court of Federal Claims. The complaint was filed under seal against the U.S. Army Materiel Command, headquartered at Redstone Arsenal near Huntsville, Ala., which was in charge of source selection for JLTV on behalf of the Army and Marine Corps. A redacted version of the complaint should be publicly available as soon as both Lockheed Martin and the Army can agree upon a version that is appropriate for release, according to the federal claims court clerk’s office.

JLTV Photo: Lockheed Martin
JLTV
Photo: Lockheed Martin

“After careful consideration of all options, Lockheed Martin decided to file a complaint with the Court of Federal Claims concerning our Joint Light Tactical Vehicle (JLTV) contract award process,” the company said Thursday in a statement. “We look forward to working with all parties involved on the next steps.”

The statutory 100-day period in which the GAO must rule on a protest was nearing a close but Lockheed Martin was not granted an extension to consider the new documentation. An industry source with knowledge of the matter said the new data was “a larger quantity of material and data than all the material and data previously provided Lockheed Martin during the protest process” and could have changed witness testimony on the matter before the GAO.

Lockheed Martin would not characterize the newly unearthed data as relating to vehicle performance, lifecycle cost calculations or previously unpublished government requirements.  Neither the company nor the GAO were provided the cache of documents until “very late” in the protest period, Lockheed Martin said in a statement late Tuesday.

“Recently, we were made aware of a substantial number of documents directly related to the competition that were not provided to the GAO or Lockheed Martin until very late in the protest process,” Lockheed Martin said. “We believe this newly discovered information should have been considered by the GAO before issuing a ruling on the protest, however, GAO declined to grant an extension to the 100-day deadline and could not consider the new documents. Therefore, we are considering all options available to us to ensure that a fair and unbiased evaluation of all available data is considered before issuing a decision in this important matter.”

The industry source would not specify the content of the Army’s late documentation, but said it contained additional grounds on which Lockheed Martin could base its protest. Because of the volume of material, he said it is safe to assume there is a “wide variety” of information.

After a contract award, the awarding government agency generally briefs all companies on the performance of their submission. The losing competitors then have 10 days to file a protest if they wish. The GAO then considers the protest arguments and the government’s source-selection data and procedures and holds hearings over a 100-day period. It then either upholds or denies the protest.

The clock on Lockheed Martin’s protest with the GAO was set run out Dec. 17. The Army came out with the data in question only days before the agency was required to make a determination and without ample time for the information to be heard by GAO officials, the industry source said. The data could have “materially affected the case, including the testimony and cross examination of government witnesses,” he said.

Oshkosh was informed of Lockheed Martin’s complaint filing on Thursday, but has not received orders to halt production on its JLTV. Production resumed earlier this week when the GAO dismissed Lockheed Martin’s original protest because the matter had been referred to the courts.

“We are confident that the Army conducted a thorough, methodical procurement including exhaustive testing and evaluation to ensure our troops get the best vehicle, and that this process was validated by the GAO review,” John M. Urias, president of Oshkosh Defense, said in a statement Dec. 17.  “We are confident that the U.S. Court of Federal Claims will expeditiously reach the same conclusion and the award to Oshkosh will be upheld.  We are hopeful that this latest protest filing will not be permitted to further delay the JLTV program and delivery of these vehicles to provide greater protection for our troops in future missions.”



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