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Oshkosh Corporation Message Board

  • bdnshine bdnshine Sep 4, 2009 4:11 PM Flag

    DOD stops FMTV work

    Can any one get the full story on this aticle?

    <Navistar Protests Major FMTV Award to Oshkosh; Army Stops Work InsideDefense (subscription) >

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    • So Loren Thompson is a consultant to BAE. I'm shocked!

      Reminds me of Captain Renault in Casablanca:

      Rick: How can you close me up? On what grounds?
      Captain Renault: I'm shocked, shocked to find that gambling is going on in here!
      [a croupier hands Renault a pile of money]
      Croupier: Your winnings, sir.
      Captain Renault: [sotto voce] Oh, thank you very much.
      [aloud]
      Captain Renault: Everybody out at once!

    • OK. Thanks.

      I still have a hard time understanding who's right and who's wrong.

      Guess we'll find out in December.

    • Not arguing either but where's his support for his "maximum 10% profit margin" statement. Sez who. Only numbers I could find were an original "guesstimate" that the trucks "might" cost in the area of $500K (fact). If OSK bid $385K (fact), that's 23% below the "guesstimate". If the claim that OSK underbid BAE by 30% is even close to truth, that puts BAE's bid over $500 by my figuring. Real close to the guesstimate. Hmmmmm.

      Again, if the customer hands you the plans it should cost less. OSK has been building trucks for almost 100 years. They're just better at it.
      Rating :

    • Not arguing either but where's his support for his "maximum 10% profit margin" statement. Sez who. Only numbers I could find were an original "guesstimate" that the trucks "might" cost in the area of $500K (fact). If OSK bid $385K (fact), that's 23% below the "guesstimate". If the claim that OSK underbid BAE by 30% is even close to truth, that puts BAE's bid over $500 by my figuring. Real close to the guesstimate. Hmmmmm.

      Again, if the customer hands you the plans it should cost less. OSK has been building trucks for almost 100 years. They're just better at it.

    • <Doesn't look like an underbid in MHO.>

      I don't know one way or the other. But the other poster raised a point that cannot be ignored. He said that in these contracts the maximum profit margin is around 10%. IF, IF BAE's claim is true that OSK bid is 30% lower than its own, and Navistar is also protesting probably on the same grounds, one has to wonder whether OSK bid is below cost. And if it is and if that is illegal, then what?

      Not arguing. Just trying to find out.

    • I think this is about politics too. BAE bought the old Stewart/Stevenson company in Texas but the Army had already bought up the FMTV design rights. When a client hands out the plans and says "build this", it should certainly be cheaper than doing all the design/engineering yourself. OSK has a better truck and knows how to build them. Doesn't look like an underbid in MHO.

    • In my opinion, this could actually work out quite well for OSK. I say that because they already have to work hard to get the MATV contract into full production, plus they have a $122M order for their superior suspensions that FRPT was ordered to put on their MRAP, and possibly more orders for that suspenion to retrofit the other competitor MRAPs.
      This stop-work order could be just the ticket for them to concentrate on the need to get the MATV's on the production ramp up they promised by end of Dec.
      And by then they should hopefully have all the tweeking done of the production line to get this contract back.
      If I remember, BAE bought Stewart/Stevens in a White Knight buyout back when OSK wanted to buy them after S/S won the last 10 year contract. That was bitterly fought over also, OSK even tried to sue in court, I believe. OSK had the superior truck back then, and they have it now. Politics was very much involved then, as in now. JMHO

    • So does it mean they cant work on the truck until Dec. 14 if the army doesnt make a decision until then?

    • Navistar, BAE Systems Protest Major FMTV Award to Oshkosh; Army Stops Work (Updated)


      (Editor’s note: This story has been updated to add information on BAE Systems’ protest.)

      Sept. 4, 2009 -- Navistar and BAE Systems have filed protests with the Government Accountability Office over the Family of Medium Tactical Vehicles "rebuy" contract award to Oshkosh, a GAO representative told Inside the Army today.

      The Army late last month 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. The incumbent FMTV maker, BAE Systems, and Navistar competed for the contract.

      Michael Golden of GAO told ITA today that Navistar filed a protest Sept. 3 and BAE Systems filed its own Sept. 4. The Navistar case is due to be decided by Dec. 14, he said.

      An Army official confirmed to ITA that a stop-work order has been issued to Oshkosh.

      In an e-mail to ITA today, Navistar spokeswoman Elissa Koc confirmed the protest.

      "I cannot elaborate much at this time, but following our debrief meeting with the government, we found several issues with the source-selection process and procedures," she wrote. "We are pursuing a review of those issues."

      BAE Systems declined to comment.

      Oshkosh spokesman John Daggett told ITA today that "until we know further details, we really can't comment."

      The filings mark the latest in a series of protests registered in recent Army vehicle efforts. Both the Joint Light Tactical Vehicle program and the Mine Resistant Ambush Protected All-Terrain Vehicle effort -- in its earliest stages -- faced protests. GAO denied the JLTV protests, which were filed by Northrop Grumman, which partnered with Oshkosh Defense, and Textron, which teamed with Boeing and Science Applications International Corp. In the case of M-ATV, Navistar quickly withdrew its protest.

      Last week, BAE Systems issued a statement calling the news of Oshkosh's win "disappointing" but stressing that the company would continue to deliver FMTVs.

      In the statement, 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," she continued. "We remain committed to implementing a global land systems strategy, particularly in the areas of readiness and sustainment and export activities." -- Marjorie Censer

    • The previous headline just mentioned navistar. This one mentions BAE too;


      <Navistar, BAE Systems Protest Major FMTV Award to Oshkosh; Army ... InsideDefense (subscription)>

 
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