GAO Wants Review Of $3B Oshkosh Army Contract

After protests from Navistar and BAE Systems, U.S. Government Accountability Office wants Army to re-evaluate its $3 billion contract award to Oshkosh Corp.

Dec 14th, 2009

OSHKOSH, Wis. (AP) -- The U.S. Government Accountability Office wants the Army to re-evaluate a $3 billion contract award to the Oshkosh Corp. for 23,000 military trucks and trailers.

Two companies that did not win the contract, BAE Systems and Navistar Inc., protested after Oshkosh won the contract in August. The companies, in part, questioned whether Oshkosh could meet the price it quoted.

The GAO Monday said the Army's evaluation of the bids was flawed.

Oshkosh Corp. issued a statement saying the GAO denied most of its competitors' claims, including the price challenge. Chief executive Robert Bohn says Oshkosh believes its offer continues to be the best value, and that it expects to keep the contract after the Army reviews the two remaining issues.

Production of the Family of Medium Tactical Vehicles is scheduled to start in 2011 and employ about 2,000 people.

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