Lockheed Martin Sues Pentagon Over $6.7 Billion Combat Vehicle Contract

Lockheed Martin has filed a lawsuit against the Pentagon over the decision to award $6.7 billion Joint Light Tactical Vehicle contract to Oshkosh for replacement of US Army’s Humvee fleet.

"After careful consideration of all options, Lockheed Martin decided to file a complaint with the Court of Federal Claims concerning our Joint Light Tactical Vehicle (JLTV) contract award process," the company said in a statement Thursday. "We look forward to working with all parties involved on the next steps."

US Army plans to purchase about 55,000 multi-purpose vehicles for its troops and Marine corps at an estimated $30 billion. Oshkosh won the initial order of about 1,000 JLTVs beating Lockheed Martin for the Humvees replacement in August.

Lockheed filed a protest with the Government Accountability Office (GAO) in August. The GAO dismissed Lockheed Martin’s protest Wednesday based on Lockheed Martin’s notice that it intends to file a protest in the US Court of Federal Claims. Shortly thereafter, the US Army lifted the stop work order and instructed Oshkosh to resume performance of the JLTV contract.

Lockheed filed a protest with the Government Accountability Office (GAO) in August after the Army awarded the first 17,000 of a projected 55,000 Joint Light Tactical Vehicle fleet manufacturing contract to Oshkosh. The GAO dismissed the protest, citing the defense firm’s decision to mount a challenge in court.

"We firmly believe we offered the most capable and affordable solution for the program," Lockheed said in September, when it lodged its original protest with the U.S. Government Accountability Office.

Lockheed opted to abandon the GAO proceedings after learning that "a substantial number of documents directly related to the competition" were not provided to it or to the agency until late in that process, it said in a statement.

The agency declined to extend its 100-day deadline for ruling on the dispute and could not consider the new information, according to Lockheed. The GAO then rejected Lockheed's protest, citing the company's filing of a notice of intent to sue.

A hearing is scheduled for Friday before the Judge. The government's answer is due by Feb. 16.