The MoD indicates that the ultimate contract will cover more than 5,000 vehicles as well as whole-life support for 20 years plus options for additional vehicles.
The order value is expected to be approximately GBP 1.1 billion for initial vehicle acquisition. Deliveries are scheduled to begin in late 2007.
"Oshkosh Truck and its employees invested all the necessary effort and resources to pursue this major program. It has been a hard-fought competition and our employees should be proud of their work", said Robert G. Bohn, Oshkosh's chairman, president and chief executive officer.
"We submitted a superior proposal in terms of vehicle performance, value for money, whole-life support and more than 90% U.K. industrial participation. Oshkosh military trucks have been battle tested in Iraq, Afghanistan and Bosnia and have proven to provide awesome off-road mobility, reliability and overall performance."
This contract would have created at least 600 jobs over the life of the program at Oshkosh's facility in Llantrisant, South Wales, at ABRO and throughout its supplier base.
"The loss of this program is certainly disappointing, but this was one of many opportunities that Oshkosh has been focused on to grow our business, both organically and through acquisitions", continued Bohn.
"We will continue to offer exceptional support to the U.K. MoD on the two defense programs that we are currently fulfilling - the U.K. HET and U.K. Wheeled Tanker programs. As a company, we remain focused on providing the best equipment and service to our military and commercial customers worldwide and will continue to aggressively develop other business opportunities."
On the Support Vehicle bid, Oshkosh again partnered with ABRO, DSDA and King Trailers. ABRO, based in Warminster, Wiltshire, would have manufactured the cargo bodies, installed ancillary equipment, performed final test and delivery functions, and provided through-life maintenance support.
DSDA was selected to provide spare parts storage and shipping services. King Trailers Ltd. of Market Harborough, Leicestershire, would have built the Recovery Trailers.
"Loss of this program not only affects Oshkosh, but also our exceptional partners for this program," explained Bohn.
Oshkosh will comment further on the loss of this program in its earnings conference call scheduled for October 28, 2004.