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Oshkosh Defense cutting hundreds of jobs
by Richard Tomkins
Oshkosh, Wis. (UPI) Oct 10, 2014

Air Force exercises option on DI contract
Mclean, Va. (UPI) Oct 10, 2014 - U.S. Air Force war reserve materiel at several locations in the United States and the Middle East will continue to be managed by DynCorp International.

The work comes under a contract modification worth $80.3 million, the exercise of a sixth option year under a 2008 firm-fixed-price, cost-plus-award-fee and cost reimbursable contract.

"Our partnership with the U.S. Air Force on the WRM program is invaluable to us," said Randy Bockenstedt, DynLogistics senior vice president, DynCorp International. "The DI team looks forward to continuing to support this important program."

Under the award, DI will continue to maintain, repair, inspect, store and secure the WRM resources. DI team members will also perform outload and reconstitution of pre-positioned assets, including expeditionary airfield resources, aerospace ground equipment, air base operability equipment, mobility readiness spares packages and peacetime operating stocks.

DI said it will also maintain government-furnished property and facilities for storing the assets and will provide exercise and contingency logistics support.

Additional details were not disclosed.

Hundreds of workers at Oshkosh Defense are to lose their jobs in December as a result of lower U.S. defense spending, the company announced.

The workforce reduction will affect between 250-300 hourly-wage workers and 70 salaried positions.

"We continue to reshape our workforce as a result of significantly lower U.S. defense spending and dramatic reductions in military vehicle production," said John Urias, Oshkosh Corporation executive vice president and president of Oshkosh Defense.

"We have gone to great lengths to minimize and delay the impact of these changes on our Defense workforce. At the same time we are aggressively competing for future contracts including JLTV, MSVS and other international opportunities, which will serve as a catalyst for growth of the Defense business."

Oshkosh said the reductions will mostly involve elimination of temporary employees, plus elimination of open positions. Those retiring will not be replaced.

County and Wisconsin State workforce development agencies and local employers will be tapped to help those affected in the layoff. The company also plans a job fair for affected employees to meet prospective future employers.

"Amid the defense spending downturn, we remain committed to our role in supporting our customers' military ground operations around the world," Urias said. "We will retain a strong, experienced workforce to serve all existing and new contracts as they are awarded."

Oshkosh said it will have a workforce of about 1,800 personnel in Wisconsin and key regional facilities following the trim.


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