Oshkosh wins contract to supply military vehicles for Afghanistan

From Larry Shaughnessy
CNN

WASHINGTON (CNN) - The Department of Defense announced Tuesday it awarded Oshkosh Corporation a contract worth more than $1 billion to build a new line of armored vehicles designed specifically for the rugged mountains of Afghanistan.

Under the contract, the military is buying 2,244 M-ATVs from Oshkosh for $1.06 billion dollars.

Oshkosh, based in Wisconsin, beat out four other competitors for the contract: Northrup Grumman, Navistar International, BAE Systems and Force Dynamics.

The purchase comes in an era when major defense projects are being cut, but defense department officials say more contracts for M-ATVs may be awarded as the United States increases its military presence in Afghanistan to help President Hamid Karzai's government battle Taliban insurgents.

M-ATVs are military all-terrain vehicles that are smaller and lighter than the model credited with protecting U.S. troops in Iraq.
The model used in Iraq has proven too heavy for Afghanistan's roads and too fragile to drive off-road through Afghanistan's rocky terrain, officials say.

The M-ATVs are designed to be tough enough to survive off-road driving, but light enough to prevent damage to Afghanistan's limited paved road system.

Like their predecessor used in Iraq, M-ATVs have hulls designed to divert the power of a roadside bomb explosion without harm to the troops inside. The Army hopes to start deploying the M-ATVs in Afghanistan by the end of the year.

Robert G. Bohn, the Oshkosh Corporation chairman and chief executive officer, said in a statement that Oshkosh would speed up production to meet the Defense Department's "accelerated delivery schedule."

Oshkosh also has asked other manufacturers if they can assist in production of Oshkosh M-ATVs to ensure delivery for the military's "urgent need," Bohn said.