PENTAGON: You wouldn’t have known it from the way the Army announced it, but the service awarded arguably its most important contract in a decade this evening to build the first 17,000 Joint Light Tactical Vehicles (JLTV) to Oshkosh. “The JLTV production contract is a historic win for Oshkosh Corporation and more than 300 suppliers in 31… Keep reading →

WASHINGTON: “Go drive it, Sydney,” Heidi Shyu called out across a room. “I want you to go drive it. It’s awesome.” “It” is the JLTV, the Army and Marine Corps’ future Joint Light Tactical Vehicle, a $30 billion program for 55,000 vehicles. As the Army’s top acquisition official, Shyu will choose the winning contractor — –… Keep reading →

Not every vote on a Pentagon program is cast in Washington, DC. Today, the Arkansas state legislature convened in special session to decide on an $87 million bond issue to benefit aerospace giant Lockheed Martin. The “super project” at stake — to use the Arkansas statute’s term of art — is the expansion of Lockheed’s… Keep reading →

WASHINGTON: The hearing season is roaring ahead at full tilt, with senior officials at five defense hearings on Wednesday. Here’s our preview of some of the likely topics and issues. The most interesting to Breaking Defense readers probably will be the unique pairing of the four Army and Air Force leaders before the full Senate… Keep reading →

WASHINGTON: The top question on defense lawmakers’ minds right now is: “Can we trust you with the people’s money?” And no large military organization has a worse record in that respect than the US Army, with its unhappy track record of canceled programs and wasted billions dating to before 9/11. It’s such a sensitive and high-stakes question that, when I started to ask Army… Keep reading →

PENTAGON: After years of cuts and cancelled programs, tanks and other armored vehicles are beginning a comeback. In contrast to other investments in the 2016 budget request released today, the ground vehicle increases have so much congressional backing — and involve such relatively small amounts — that they’re actually likely to happen. Four tracked vehicle… Keep reading →

The race to replace the iconic Humvee has entered its final stretch. Today, the Army gave competing contractors AM General, Oshkosh, and Lockheed Martin the final Request For Proposal for production of the Joint Light Tactical Vehicle. The competitors have until February 5 to ask the government questions and must submit their proposals by Feb.… Keep reading →

[UPDATED with Pentagon confirmation] The better-protected, more-mobile replacement for the Humvee took a big step forward this month, when all three competitors’ vehicles completed a crucial series of military tests. All three have also completed a government Production Readiness Review to certify their ability to mass-produce their vehicle. Next comes the final Request For Proposals (RFP) for… Keep reading →

[CORRECTED data on competitor Oshkosh] LOCKHEED MARTIN “LIGHTHOUSE,” SUFFOLK, VA: “We’re in a really tough competition…a knife fight in [a] phone booth,” said Tom Kelly, who runs Lockheed Martin’s government relations for the Joint Light Tactical Vehicle program. In the defense contracting world writ large, Lockheed is the 800-pound gorilla. In the three-way competition to replace… Keep reading →

After three years of the “age of austerity” in Western military spending, investors’ imperatives and corporate strategies show one indication of how the defense-industrial base will evolve over the next decade. Investors want public companies that demonstrate an attractive risk-adjusted total return, not just M&A-fueled arbitrage plays. In response, companies are husbanding or harvesting their financial… Keep reading →