DETROIT ARSENAL, Mich. (Feb. 9, 2023) – The Army announced today the award of a requirements contract with five base ordering years plus five one-year optional ordering periods to AM General LLC for estimated Joint and Foreign Military Sales (FMS) production of up to 20,682 Joint Light Tactical Vehicles (JLTVs) and up to 9,883 JLTV Trailers. The total contract value is $8.66 billion. This competitive follow-on production contract has been part of the JLTV acquisition strategy from the beginning and focused on a best value determination that includes retaining the capability of the JLTV today, while ensuring that it can be upgraded in the future with the latest technologies.
The JLTV follow-on contract strategy was designed to provide a fair and competitive environment, while ensuring the Army obtained a premier manufacturer that delivers the highest quality, most capable, and affordable tactical vehicle in the world.
The JLTV follow-on contract request for proposal, in accordance with the Army Climate Strategy, sought to incentivize offerors to propose fuel efficiency technologies that targeted on-the-move fuel economy improvements and anti-idle capability in support of optimizing combat effectiveness. The JLTV A2 design is the first tactical wheeled vehicle with baseline architecture utilizing lithium-ion batteries, which is a key enabler for anti-idle capability.
Effective competition is the critical element for controlling cost and maximizing buying power for the government. The JLTV engagement strategy with industry has been very successful in establishing executable timelines, adding mature technology insertions, and providing transparency throughout the process to allow contractors to make individual business decisions.
“One of the key strategies of the JLTV program from its earliest days was to leverage competition to control cost and maximize buying power for the government,” said Brig. Gen. Samuel L. “Luke” Peterson, program executive officer, Combat Support & Combat Service Support. “From the start of production, the government procured the data rights to the JLTV Technical Data Package from the original equipment manufacturer, which the program leverages to conduct future production competitions and control the platform’s configuration and vehicle price well into the future. These government-held data rights permitted the program to compete this follow-on production contract with much better control of the production configuration and cost.”
To ensure the JLTV follow-on production contract was robustly competitive, the government focused on rigorous communication with its industry partners. This consistent communication strategy included prior notifications to the current contractor that future contracts were intended to be competitive. The original JLTV contract was awarded in August 2015 to Oshkosh Defense, and the Technical Data Package option was ordered shortly thereafter.
“Our industry partners are essential to ensure we deliver critical, advanced technology and capabilities like the JLTV to our warfighters,” said Brig. Gen. David Walsh, commander of Marine Corps Systems Command. “We look forward to partnering with AM General to build upon this proven platform and ensure our warfighters have the latest in vehicle technology.”
Since August 2019, Joint Program Office JLTV actively engaged the light tactical wheeled vehicle industrial base. The feedback received from market research was instrumental in framing the acquisition plan, which was approved by the Army Acquisition Executive in November 2020. The plan:
- Focused on and extended the presolicitation period
- Provided multiple draft Request for Proposal releases that sought feedback to shape the solicitation and eliminate barriers
- Provided lease vehicles to provide a deeper level of understanding for the nonincumbents
- Released both the JLTV A1 and A2 Technical Data Packages to provide competitive balance
- Enabled multiple static displays and one-on-one sessions with government subject matter experts
- Provided a responsive Q&A forum, resulting in active industry engagement (more than 400 questions submitted and corresponding responses.)
The JLTV Family of Vehicles, an Army-led joint program with the U.S. Marine Corps, closes capability gaps in the light tactical vehicle fleets. JLTVs can perform multiple mission roles and are designed to provide protected, sustained, networked mobility for personnel and payloads across the full range of military operations. The JLTV brings increased protection and performance to the fleet; minimizes ownership costs by maximizing commonality, fuel efficiency and reliability; and maintains effective competition throughout its life cycle. Commonality of components, maintenance procedures, training, etc., between vehicles is expected to be inherent in Family of Vehicle solutions across mission variants to minimize total ownership cost.
The JLTV program has been lauded as a model of successful acquisition. It has received two David Packard for Acquisition Excellence Awards as well as Department of Defense Should-Cost and Innovation Awards.