Thursday, April 25, 2024
Thursday, April 25, 2024
The Army released a solicitation today for the Joint Light Tactical Vehicle follow-on contract, which is estimated to be worth $7.3 billion.
Bids are due April 12 to produce the JLTV, which will partially replace the humvee, for the next five to 10 years, according to an Army announcement.
“The awarded contract will be a Single award, five-year requirements type contract, with five one-year options on a Cost-Plus Fixed-Fee and Firm-Fixed Price basis,” the announcement states.
A winner will be selected in the fourth quarter of this fiscal year, the Army has previously said. The value in the solicitation is an increase from the $6.5 billion over 10 years that the service predicted in November.
The predicted size of the follow-on contract has fallen dramatically in the past year, from 30,000 to 16,600 vehicles over 10 years. The vehicle is one of the Army’s enduring systems, rather than a modernization priority, the Army’s chief of staff told a Senate panel in June.
Oshkosh Defense, the incumbent manufacturer of the JLTV, has said that it will compete for the follow-on contract, and AM General, the humvee manufacturer, has said that it intends to bid.
GM Defense expressed interest in the follow-on contract, but the company’s president said that the reduction “changes the business case a bit.” The company has not announced whether it will compete.
Oshkosh announced last month that it has developed a hybrid-electric version of the JLTV. Company officials said the Army has not made hybrid powertrains a requirement for the follow-on contract.