Oshkosh Defense Files Challenge with Canadian International Trade Tribunal for MSVS SMP Award Decision
January 14 2016 - 9:23AM
Business Wire
Challenge Cites PWGSC’s Failure to Conduct a
Fair and Transparent Procurement Process
Oshkosh Defense Canada, Inc., an Oshkosh Corporation (NYSE: OSK)
company, announced today that it has filed a challenge with the
Canadian International Trade Tribunal (CITT) of Public Works and
Government Services Canada’s (PWGSC), now Public Services and
Procurement Canada, contract award decision for the Medium Support
Vehicle System (MSVS) Standard Military Pattern (SMP) procurement.
The MSVS SMP contract award was announced in July 2015 and valued
at $834 million (CAD). The challenge process, which is the legal
process designed to provide an independent review of Canadian
Government procurements, was initiated by Oshkosh on January 6,
2016 and the CITT has now accepted the inquiry based on Oshkosh’s
filing.
“The MSVS SMP competition was intended to provide the most
capable technical solution to the Department of National Defence,
as well as the best value for Canadian taxpayers,” said Wilson
Jones, president and chief executive officer of Oshkosh
Corporation. “We firmly believe Oshkosh provided the overall best
value offering for MSVS SMP. Following a thorough review during the
past five months, Oshkosh has concluded that there are significant
questions regarding the conduct of the MSVS SMP testing and
evaluation under the terms of the Request for Proposal that support
a formal challenge with the CITT.”
About Oshkosh Defense
Oshkosh Defense is a leading provider of tactical wheeled
vehicles and life cycle sustainment services worldwide. Oshkosh
Defense Canada, Inc. is a wholly-owned subsidiary of Oshkosh
Defense, LLC, located in Ottawa, Ontario.
For decades Oshkosh Defense has been mobilizing military and
security forces around the globe by offering a full portfolio of
heavy, medium, light and highly protected military vehicles to
support our customers’ missions. In addition, Oshkosh offers
advanced technologies and vehicle components such as TAK-4®
independent suspension systems, TerraMax® unmanned ground vehicle
solutions, Command Zone™ integrated control and diagnostics system,
and ProPulse® diesel electric and on-board vehicle power solutions,
to provide our customers with a technical edge as they fulfill
their missions. Every Oshkosh vehicle is backed by a team of
defense industry experts and complete range of sustainment and
training services to optimize fleet readiness and performance.
Oshkosh Defense, LLC is an Oshkosh Corporation company [NYSE:
OSK].
To learn more about Oshkosh Defense, please visit us at
www.oshkoshdefense.com.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and
marketer of a broad range of access equipment, commercial, fire
& emergency, military and specialty vehicles and vehicle
bodies. Oshkosh Corporation manufactures, distributes and services
products under the brands of Oshkosh®, JLG®, Pierce®, McNeilus®,
Jerr-Dan®, Frontline™, CON-E-CO®, London® and IMT®. Oshkosh
products are valued worldwide by rental companies, concrete
placement and refuse collection businesses, fire & emergency
departments, municipal and airport services and defense forces,
where high quality, superior performance, rugged reliability and
long-term value are paramount. For more information, please visit
www.oshkoshcorporation.com.
®, TM All brand names referred to in this news release are
trademarks of Oshkosh Corporation or its subsidiary companies.
Forward-Looking Statements
This press release contains statements that the Company believes
to be “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact, including, without
limitation, statements regarding our future financial position,
business strategy, targets, projected sales, costs, earnings,
capital expenditures, debt levels and cash flows, and plans and
objectives of management for future operations, are forward-looking
statements. When used in this Proxy Statement, words such as “may,”
“will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,”
“should,” “project” or “plan” or the negative thereof or variations
thereon or similar terminology are generally intended to identify
forward-looking statements. These forward-looking statements are
not guarantees of future performance and are subject to risks,
uncertainties, assumptions and other factors, some of which are
beyond our control, which could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. These factors include the cyclical nature of the
Company’s access equipment, commercial and fire & emergency
markets, which are particularly impacted by the strength of U.S.
and European economies; the Company’s estimates of access equipment
demand which, among other factors, are influenced by historical
buying patterns and rental company fleet replacement strategies;
the strength of the U.S. dollar and its impact on Company exports,
translation of foreign sales and purchased materials; the expected
level and timing of U.S. Department of Defense (“DoD”) and
international defense customer procurement of products and services
and funding thereof; risks related to reductions in government
expenditures in light of U.S. defense budget pressures,
sequestration and an uncertain DoD tactical wheeled vehicle
strategy; risks related to the Company’s future defense segment
depending upon the outcome of a competitor’s challenge of the JLTV
production contract award to the Company; the Company’s ability to
finalize an international contract for a significant quantity of
M-ATVs, with the majority of the units sold in fiscal year 2016;
the Company’s ability to increase prices to raise margins or offset
higher input costs; increasing commodity and other raw material
costs, particularly in a sustained economic recovery; risks related
to facilities expansion, consolidation and alignment, including the
amounts of related costs and charges and that anticipated cost
savings may not be achieved; global economic uncertainty, which
could lead to additional impairment charges related to many of the
Company’s intangible assets and/or a slower recovery in the
Company’s cyclical businesses than Company or equity market
expectations; projected adoption rates of work at height machinery
in emerging markets; the impact of severe weather or natural
disasters that may affect the Company, its suppliers or its
customers; risks related to the collectability of receivables,
particularly for those businesses with exposure to construction
markets; the cost of any warranty campaigns related to the
Company’s products; risks related to production or shipment delays
arising from quality or production issues; risks associated with
international operations and sales, including compliance with the
Foreign Corrupt Practices Act; the Company’s ability to comply with
complex laws and regulations applicable to U.S. government
contractors; cybersecurity risks and costs of defending against,
mitigating and responding to a data security breach; and risks
related to the Company’s ability to successfully execute on its
strategic road map and meet its long-term financial goals.
Additional information concerning these and other factors is
contained in the Company’s filings with the Securities and Exchange
Commission. All forward-looking statements speak only as of the
date of this press release. The Company assumes no obligation, and
disclaims any obligation, to update information contained in this
press release. Investors should be aware that the Company may not
update such information until the Company’s next quarterly earnings
conference call, if at all.
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version on businesswire.com: http://www.businesswire.com/news/home/20160114005692/en/
Oshkosh DefenseJennifer Christiansen, Vice President,
Business
Development920-966-5635jchristiansen@defense.oshkoshcorp.com
Oshkosh (NYSE:OSK)
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