Five-Year Contract for 20,000 Vehicles, 10,000 Trailers, $8.7 Billion
The US Army awarded AM General a five-year contract, with an option for an additional five years, on 9 February to build over 20,000 Joint Light Tactical Vehicles (JLTV) and almost 10,000 trailers, in a deal some observers estimate to be worth up to $8.7 billion.
In winning the contract, the company has overturned incumbent Oshkosh Defense, which won the original competition against AM General in 2015. “The effort that we put into our winning proposal is testament to our commitment to serve those who serve to protect us […] It was with the warfighters in mind that we set out to not only demonstrate our world-class manufacturing capabilities, but also to integrate innovative solutions into the JLTV, so they receive the best product for their mission,” commented Jim Cannon, AM General President and CEO.
AM General is well positioned to evolve next-generation JLTVs to meet mission demands as they develop. The company’s core capability in development and production of light tactical vehicles, coupled with its R.I.D.E (Responsive, Integrity, Dynamic, Excellence) values and culture, ensure that the end-user is well-equipped and supported on the battlefield. Significant programme experience, combined with proven transformative commercial manufacturing initiatives, like its Smart Factory, Automated Guided Vehicle System (AGV), Radio Frequency Identification/Global Positioning System (RFID/GPS) traceability, and rigorous International Automotive Task Force (IATF) 16949-certified quality management system, enable it to produce and deliver JLTVs with technical enhancements that surpass requirements. Some relevant technology enhancements include enhanced corrosion protection and improved fuel efficiency, in addition to continuous developments for an updated Next-Generation Vehicle Architecture.
Pointing out that a “competitive follow-on production contract has been part of the JLTV acquisition strategy from the beginning,” a 9 February US Army statement added that the “government-held data rights permitted the program to compete this follow-on production contract with much better control of the production configuration and cost”. An Oshkosh Defense release stated that it was “disappointed to learn of the government’s decision,” and went on to point out “As the incumbent manufacturer, only Oshkosh’s JLTV proposal leveraged substantial JLTV experience and established infrastructure, while providing best-in-class upgrades to the JLTV platform”. Oshkosh is pursuing a debriefing from the government in the near future, MON understands.
AM General will manufacture the JLTV in a dedicated military production facility in Indiana, which features an onsite test track where JLTVs will undergo testing in a dynamic operating environment. These dedicated facilities underpin the company’s readiness to execute a smooth transition for JLTV production, quality testing, and delivery. Deliveries are expected to begin 17 months after contract award.
