Losing a $30 Billion Contract Makes Lockheed Martin Contest US Army's Decision over JLTV

Lockheed Martin JLTV 1 photo
Photo: Lockheed Martin
Without getting into the whole conspiracy theory thing, manufacturing military equipment is certainly a very profitable business. So profitable that you don't let go that easily.
Last month, the US Army announced the company that will build the next light armored infantry vehicle (or Joint Light Tactical Vehicle - JLTV - as the army is calling it) replacing the aging Humvee. Out of the three entries, the Oshkosh Corporation was chosen as the winner in front of AM General and Lockheed Martin.

The contract is said to be worth around $6.7 billion for the initial batch of 17,000 vehicles. In reality, it could end up being much more than that (some voices are rumoring $30 billion), considering the current Humvee has been produced in more than 280,000 units. And, you know, the world doesn't look like it's passed its warmongering tendencies.

Now, though, since there's a hell of a lot of green bills involved, somebody is becoming a sore loser and is officially lodging a protest over the way the contract was handled. That somebody is Lockheed Martin, a company already enlisted as a trusted supplier to the US Army, but one that apparently can't get enough.

We did it best

"Lockheed Martin does not take protests lightly, but we are protesting to address our concerns regarding the evaluation of Lockheed Martin's offer," read a company's statement quoted by Defense News.

Lockheed Martin is not alone in this, but support isn't coming from the other defetead competitor, AM General, but a member of the Congress. It's the Republican senator and Senate Appropriations Committee John Boozman, representing the State of Arkansas where production of the JLTV would have taken place had Lockheed won the contest.

"I believe Lockheed Martin has valid concerns over the JLTV contract award and under such circumstances, it is appropriate to file a protest and seek an independent review of the contract award by the [Government Accountability Office]," Boozman told DN.

On the other hand, AM General decided to make the most of the situation by gracefully accepting the decision and moving on. In a recent press release, the company said: "AM General continues to believe that the BRV-O was the right choice for JLTV. However, we believe a protest would ultimately result in a distraction from our current growth business areas, including meeting the significant current and future needs of our customers in the United States and around the globe."

Of course, it's easier for AM General to accept the situation as they will still be tasked with repairing and maintaining the fleet of Humvees, even though that contract is certainly less profitable than the $30 billion JLTV one.

Below, you can find AM General's full press release regarding the situation.
If you liked the article, please follow us:  Google News icon Google News Youtube Instagram
Press Release
About the author: Vlad Mitrache
Vlad Mitrache profile photo

"Boy meets car, boy loves car, boy gets journalism degree and starts job writing and editing at a car magazine" - 5/5. (Vlad Mitrache if he was a movie)
Full profile


Would you like AUTOEVOLUTION to send you notifications?

You will only receive our top stories