A military contract, valued at about two billion dollars to Wisconsin-based Oshkosh Corporation, may be in jeopardy. The Government Accountability Office said a challenge mounted by Oshkosh rivals, BAE Systems, and Navistar International, was valid in key areas of procurement. The G.A.O.’s Michael Golden said his agency’s review led them to conclude that the U.S. Army, which awarded the contract for medium-duty trucks to Oshkosh in August, made a flawed decision. The G.A.O. recommended that the Army reevaluate the selection and terminate the contract if Oshkosh is found ”to not offer the best value.”
Oshkosh Corporation chairman and chief executive officer Robert Bhohn said the firm believes that its offer was, and continues to be, the best value for the U.S. Army, the troops and the U.S. taxpayer, and that the Army’s decision to award the contract to the Wisconsin firm will stand. The Army has 60 days to respond to the findings. The protests were filed by BAE and Navistar in September, after Oshkosh was awarded the contract to build up to 23,000 vehicles and trailers.