Oshkosh Defense Files Bid Protest on Recent JLTV Award Decision

Rhea-AI Summary

Oshkosh Defense, a subsidiary of Oshkosh Corporation (NYSE:OSK), has filed a formal bid protest with the U.S. Government Accountability Office (GAO) concerning the U.S. Army's recent award decision for the Joint Light Tactical Vehicle (JLTV) Follow-On Contract. This protest, initiated on March 6, 2023, follows significant concerns raised by Oshkosh regarding the evaluation of proposals. The company asserts that the government's assessment failed to properly consider the financial and operational capabilities necessary to select the best value solution. As the original designer of the JLTV platform, Oshkosh claims its experience and production capabilities are unmatched.

Positive

• Oshkosh Defense is the incumbent manufacturer and original designer of the JLTV platform.
• The company possesses substantial JLTV experience and production capabilities.

Negative

• Concerns regarding the evaluation process may indicate a risk of losing future contracts.
• The protest could lead to potential delays in contract award and revenue recognition.

OSHKOSH, Wis.--(BUSINESS WIRE)-- Oshkosh Defense, a wholly owned subsidiary of Oshkosh Corporation (NYSE:OSK), has filed a formal bid protest with the U.S. Government Accountability Office (GAO) over the U.S. Army’s recent award decision with respect to the Joint Light Tactical Vehicle (JLTV) Follow-On Contract.

Oshkosh Defense Joint Light Tactical Vehicle (JLTV) (Photo: Business Wire)

The independent GAO review of the procurement decision was initiated by Oshkosh on March 6, 2023.

“After participating in the government’s post-award debriefing process, we have significant concerns regarding the evaluation of the proposals under the solicitation that support an independent review,” said Tim Bleck, executive vice president Oshkosh Corporation and president Oshkosh Defense.

“We believe the Government’s evaluation did not properly review the financial, technical, and manufacturing capabilities offered to select the best value and lowest risk solution to deliver the JLTV.”

As the incumbent manufacturer and original designer of the JLTV platform, only Oshkosh’s proposal leveraged substantial JLTV experience and proven JLTV production infrastructure, while providing best-in-class upgrades to the JLTV platform.

About Oshkosh Defense

Oshkosh Defense is a global leader in the design, production and sustainment of best-in-class military vehicles, technology solutions and mobility systems. Oshkosh develops and applies emerging technologies that advance safety and mission success. Setting the industry standard for sustaining fleet readiness, Oshkosh ensures every solution is supported worldwide throughout its entire life cycle.

Oshkosh Defense, LLC is an Oshkosh Corporation company [NYSE: OSK].

Learn more about Oshkosh Defense at www.oshkoshdefense.com.

About Oshkosh Corporation

At Oshkosh (NYSE: OSK), we make innovative, mission-critical equipment to help everyday heroes advance communities around the world. Headquartered in Wisconsin, Oshkosh Corporation employs approximately 15,000 team members worldwide, all united behind a common cause: to make a difference in people’s lives. Oshkosh products can be found in more than 150 countries under the brands of JLG®, Pierce®, MAXIMETAL, Oshkosh® Defense, McNeilus®, IMT®, Jerr-Dan®, Frontline™, Oshkosh® Airport Products, London™ and Pratt Miller. For more information, visit oshkoshcorp.com.

Forward Looking Statements

This news release contains statements that the Company believes to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including, without limitation, statements regarding the Company’s future financial position, business strategy, targets, projected sales, costs, earnings, capital expenditures, debt levels and cash flows, and plans and objectives of management for future operations, are forward-looking statements. When used in this news release, words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “project” or “plan” or the negative thereof or variations thereon or similar terminology are generally intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, assumptions, and other factors, some of which are beyond the Company’s control, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include the extent of supply chain and logistics disruptions; the Company’s ability to increase prices or impose surcharges to raise margins or to offset higher input costs, including increased raw material, labor, freight and overhead costs; the Company’s ability to predict the level and timing of orders for indefinite delivery/indefinite quantity contracts with the U.S. federal government; the impact of any U.S. Department of Defense solicitation for competition for future contracts to produce military vehicles; the impact of orders from the U.S. Postal Service; the Company’s ability to comply with complex laws and regulations applicable to U.S. government contractors; cybersecurity risks and costs of defending against, mitigating and responding to data security threats and breaches impacting the Company; and risks related to the Company’s ability to successfully execute on its strategic road map and meet its long-term financial goals. Additional information concerning these and other factors is contained in the Company’s filings with the Securities and Exchange Commission. All forward-looking statements speak only as of the date of this news release. The Company assumes no obligation, and disclaims any obligation, to update information contained in this news release. Investors should be aware that the Company may not update such information until the Company’s next quarterly earnings conference call, if at all.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230306005852/en/

Alexandra Hittle, Director, Global Marketing and Communications

920-410-1929

ahittle@defense.oshkoshcorp.com

Source: Oshkosh Corporation

FAQ

Why did Oshkosh Corporation file a bid protest with the GAO?

Oshkosh Corporation filed the protest due to concerns about the U.S. Army's evaluation of proposals for the JLTV Follow-On Contract.

What date was the bid protest filed by Oshkosh Corporation?

The bid protest was filed on March 6, 2023.

What is the significance of the JLTV Follow-On Contract for Oshkosh Corporation?

The JLTV Follow-On Contract is significant as it affects future revenue and market position for Oshkosh Corporation.

What issues did Oshkosh identify in the Army's evaluation process?

Oshkosh highlighted that the evaluation did not adequately consider financial, technical, and manufacturing capabilities.

How might the bid protest impact Oshkosh Corporation's stock performance?

The protest could create uncertainty, potentially impacting investor confidence and the stock performance of Oshkosh Corporation (NYSE:OSK).