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Lockheed says withdraws protest of Oshkosh U.S. truck contract
February 18, 2016 / 12:36 AM / 2 years ago

Lockheed says withdraws protest of Oshkosh U.S. truck contract

A military vehicle passes by the Oshkosh plant in Wisconsin October 12, 2011. REUTERS/Darren Hauck

WASHINGTON (Reuters) - Lockheed Martin Corp (LMT.N) on Wednesday said it had withdrawn its protest in federal court of a $6.75 billion contract awarded by the U.S. Army to Oshkosh Corp (OSK.N) for 17,000 new armored vehicles to replace the Humvee.

Lockheed spokesman John Kent said the company decided to withdraw its lawsuit from the U.S. Court of Federal Claims after “careful deliberation,” but gave no further details.

Lockheed’s decision followed the court’s decision last week to deny a Lockheed motion seeking to halt any work by Oshkosh on the new trucks while the protest was being reviewed.

Oshkosh on Friday said it would resume work on the new Joint Light Tactical Vehicle (JLTV) trucks after the court’s decision.

Wilson Jones, the company’s chief executive officer, said the court’s decision was “another indication that the U.S. Army conducted a thorough, methodical procurement process.”

Lockheed had argued that the U.S. Army’s evaluation of the competing bids was flawed because it assessed the reliability of the rival vehicles using different standards.

It was not immediately clear why the company withdrew its lawsuit, its second attempt to reverse the U.S. contract award.

The Government Accountability Office, the congressional agency that rules on contract protests, dismissed Lockheed’s protest in December after the company announced its plan to take the matter to federal court.

One source familiar with the case the GAO had been poised to reject Lockheed’s protest before it decided to file a lawsuit in federal court, and the federal claims court only very rarely reversed a decision made by the GAO.

Reporting by Andrea Shalal; Editing by Sandra Maler and Lisa Shumaker

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