The US Army has awarded AM General a $4.7 billion contract to support the production of its future Joint Light Tactical Vehicle (JLTV) fleet.
Under the agreement, the company will provide associated kits, trailers, services, and additional vehicles to advance the army’s JLTV program.
Work for the contract is scheduled for completion by February 2028.
New JLTV Program Partner
The latest contract builds on a deal awarded to AM General earlier this year for more than 20,000 JLTVs, 10,000 trailers, and related vehicle upgrades.
Valued at $8.7 billion, the agreement was won through a recompete contract initially signed with Oshkosh Defence in 2015.
In March, incumbent JLTV provider Oshkosh Defense filed a protest against the unexpected award, citing “significant concerns” about the bidding evaluation process between the US Army and AM General.
“One of the key strategies of the JLTV program from its earliest days was to leverage competition to control cost and maximize buying power for the government,” US Army Program Executive Officer Brig. Gen. Samuel Peterson explained.
“From the start of production, the government procured the data rights to the JLTV Technical Data Package from the original equipment manufacturer… to conduct future production competitions and control the platform’s configuration and vehicle price well into the future.”
“These government-held data rights permitted the program to complete this follow-on production contract with much better control of the production configuration and cost.”
The JLTVs are being developed to replace the US defense’s aging Humvees in service since the 1980s.
The new vehicles feature enhanced protection, mobility, and firepower capabilities compared to their predecessor.
It enables warfighters to dominate off-road and all-terrain environments with an advanced engine, steering system, and transmission while sustaining maneuverability and payload capacity.
Currently, in-service JLTVs are used as command and control platforms, weapons carriers, and troop transport assets.