The Government Accountability Office has dismissed Lockheed Martin‘s (NYSE: LMT) protest of the Army’s potential $6.75 billion Humvee replacement contract award to Oshkosk (NYSE: OSK) on procedural grounds as Lockheed plans to challenge the branch’s decision in the Federal Claims Court.
GAO said it does not decide on a protest if the contract award is the subject of litigation although Lockheed has not officially filed its protest with the court yet.
Oshkosh will proceed on the eight-year Joint Light Tactical Vehicle program after the Army lifted a stop-work order on the company, which is contracted to start vehicle deliveries within the next 10 months and deliver at least 10, 000 units under the low-rate initial production phase over three years.
The Oshkosh, Wisconsin-based company could build up to 55, 000 vehicles over the program’s full duration.
AM General, the third JLTV competitor, said in September it would not go forward with a protest of the award.
Lockheed and partner Boeing (NYSE: BA) also are awaiting the review of joint protest filed in November against the Air Force‘s award in November of the Long Range Strike Bomber contract to Northrop Grumman (NYSE: NOC) and GAO’s deadline for that decision is in January.
Shares in Lockheed closed down $1.74 — or 0.8 percent –Â to $214.84Â with a gradual dip in the afternoon session, while Oshkosh’s stock gained 34 cents — or 0.87 percent –Â $39.61Â with a sharp turn upward from 3 p.m. Eastern time when the company showed a nominal gain.
