Image source: topwar.ru
The US Army is still not fully disclosing information about the key details of its new deal with AM General to create future light tactical vehicles (JLTV). However, according to the representative of the service, it is known that the repeated competition greatly affected the reduction of costs for this program.
Earlier this month, the US military announced that they had chosen the JLTV production application of AM General, rather than the current manufacturer Oshkosh Defense. Oshkosh still has a few days to decide whether the company will file a protest with the government's Accounting Chamber, and until then, the army said it could not disclose details about the price.
- said Michael Sprang, Project Manager of the Joint Program Office Joint Light Tactical Vehicle
In 2015, the U.S. Army engaged Oshkosh to produce its JLTV line and awarded the company a $6.7 billion initial production Contract (LRIP) before approving full-scale production in 2019. According to this, the JLTV technical data package belongs to the government. This is what allowed the US Army to renegotiate the contract in order to find a team that could produce cars at a reduced price.
However, in January, the Congressional Research Service (CRS) published a report warning that if the army chooses a new company to produce its JLTVs, it could increase the cost in the first year. At the same time, CRS said that a new deal with Oshkosh could also raise the price due to "unpredictable prices and strong commodity-related inflation."
— writes CRS.
At the moment, Michael Sprang said that AM General has 18 months to install its production line and check production processes. It is expected that the first JLTV A2 test cars will roll off the assembly line in the next year and a half, and if everything goes according to plan, the company will gradually increase production.
It is known that the US military expects to place all remaining orders from Oshkosh by November 2023. Then it is expected that by 2025 all new works will be included in the subsequent contract and transferred to AM General.
