The U.S. Army has awarded AM General a potential 10-year, $8.66 billion contract to produce up to 20,682 Joint Light Tactical Vehicles and 9,883 JLTV trailers for the joint force and foreign military sales customers.
The recompete contract has a five-year base ordering period and five option years, the Army said Thursday.
“From the start of production, the government procured the data rights to the JLTV Technical Data Package from the original equipment manufacturer, which the program leverages to conduct future production competitions and control the platform’s configuration and vehicle price well into the future,” said Brig. Gen. Samuel “Luke” Peterson, program executive officer for the Army’s combat support and combat service support.
The JLTV family of vehicles is a joint program of the Army and the U.S. Marine Corps. The vehicles are designed to perform multiple missions and provide networked and protected mobility for warfighters and payloads across military operations.
Army Contracting Command received two bids for the recompete JLTV program and obligated $230.8 million in fiscal 2023 funds at the time of award, according to the Department of Defense.
AM General said it will implement vehicle technology enhancements, including improved fuel efficiency and corrosion protection, and build the JLTV in a military production facility at its Mishawaka Manufacturing Campus in Indiana. The company expects the deliveries to kick off 17 months after contract award.
Oshkosh (NYSE: OSK), the incumbent JLTV contractor, won an approximately $6.75 billion award in August 2015. AM General and Lockheed Martin (NYSE: LMT) also competed for the initial production effort.