Truck: Stop

BAE Systems today called the news of Oshkosh's surprising win in the Family of Medium Tactical Vehicle "rebuy" competition "disappointing" but said the company would continue to deliver FMTVs through the fourth quarter of FY-10.

The Army last week awarded Oshkosh a $280.9 million contract for 2,568 FMTVs as well as support services and engineering. According to Oshkosh, the order is the first in a five-year contract to buy 23,000 trucks and trailers. Incumbent BAE Systems as well as Navistar also competed for the contract.

In a statement released last week, Linda Hudson, president of BAE Systems Land & Armaments, said the company "delivered a strong proposal, which we believe met the best interests of the business, customer and our shareholders.

While this news is disappointing, we are proud of what we have achieved in making the FMTV the medium tactical vehicle of choice for the Army during the past 17 years. We remain committed to implementing a global land systems strategy, particularly in the areas of readiness and sustainment and export activities.

The new award is not expected to affect financial planning assumptions for FMTV sales in 2009 or 2010, the release adds.

Additionally, BAE remains "under contract to deliver FMTVs through to the fourth quarter of 2010" and "continues to support the U.S. Army's FMTV program through its public-private partnership with Red River Army Depot for the reset and support of FMTVs," the announcement said.