Navistar, BAE Protest Upheld on Army’s Oshkosh Pact

Navistar Defense LLC and BAE Systems were informed today that the Government Accountability Office (GAO) sustained their protest of the Army Tank-automotive and Armaments Command’s (TACOM) award of the Family of Medium Tactical Vehicles (FMTV) program.

In August, a Department of Defense contract had been awarded to Oshkosh Corp. to build a new Army truck. Originally for 2,568 trucks worth about $280.9 million, the five-year contract will cover as many as 23,000 trucks and trailers. In September, Navistar and BAE, which had both bid on the contract, filed protests.

Oshkosh stock, which had risen 24% the day after winning the contract, tumbled 15% to $35 in early trading. Shares of Navistar rose 4.2% to $35.73, while BAE’s rose 1.2% to $22.61.

"Our review of the record led us to conclude that the Army's evaluation was flawed with regard to the evaluation of Oshkosh's proposal under the capability evaluation factor, and the evaluation of Navistar's past performance," the GAO said in a release, adding it's recommending a reevaluation of the offers including a new look at Navistar's past performance and that the Army "make a new selection decision."

Said Archie Massicotte, president, Navistar Defense: “We appreciate the time and effort the GAO invested in the review of the FMTV solicitation process. We welcome today’s ruling and we will wait for further direction from the Army regarding what may be required of us moving forward.”

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