Lockheed Fails to Block Rival's Work on New Military Vehicle

  • Initial $6.75 billion job awarded to Oshkosh Corp. unit
  • Lockheed filed suit last year challenging contract decision

Lockheed Martin Corp. failed in a bid to block work on a $6.75 billion contract for a next generation combat vehicle replacing the aging Humvee that went to a much smaller competitor.

U.S. Court of Federal Claims Judge Charles Lettow denied the biggest U.S. defense contractor’s request in a sealed order issued Thursday. Lockheed last year sued to overturn the government’s decision to award the job to a unit of Oshkosh Corp., which ranked No. 99 among U.S. defense contractors. Lockheed seeks a temporary halt to production while it fights to overturn the contract award.

The U.S. plans to buy about 55,000 of the multipurpose joint light tactical vehicles for its troops and for the Marine Corps through 2040, at a total cost of about $30 billion. Oshkosh Defense LLC in August won the initial order for about 17,000 JLTVs which are more heavily armored than the Humvees they’re slated to replace.

Bill Phelps, a spokesman for Bethesda, Maryland-based Lockheed Martin, declined to comment on the court’s decision. Michael Clow, an Army spokesman, said his branch of the military doesn’t comment on pending litigation as a matter of policy.

“The decision is another indication that the U.S. Army conducted a thorough, methodical procurement process, and we are confident that the original JLTV contract award to Oshkosh will be upheld,” the Oshkosh, Wisconsin-based company said in a statement.

The case is Lockheed Martin Corp. v. U.S., 15-cv-1536, U.S. Court of Federal Claims (Washington).

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