CITT Recommends Re-evaluation of Oshkosh Bid
and/or Monetary Compensation
Oshkosh Defense Canada, Inc., an Oshkosh Corporation (NYSE: OSK)
company, announced today that the Canadian International Trade
Tribunal (CITT) ruled in the Company’s favor regarding its legal
challenge to the Medium Support Vehicle System (MSVS) Standard
Military Pattern (SMP) contract award decision. CITT’s ruling
recommends that Canada’s Department of Public Works and Government
Services take action, including re-evaluation of Oshkosh’s bid and
physical re-evaluation of vehicles, and/or monetary compensation to
Oshkosh.
“We are pleased with CITT’s ruling, which validates our concerns
and defends the fair and transparent procurement process that the
Canadian Government strives to implement,” said Wilson Jones,
president and chief executive officer of Oshkosh Corporation.
“Following years of work and investment, the Oshkosh team firmly
believes we offered the most capable vehicle for the Department of
National Defence, and overall best value for Canada. While we are
disappointed in the significant errors found in the conduct of the
MSVS evaluation process, we look forward to a fair and timely
implementation of the Tribunal’s recommendations.”
As part of its determination, CITT recommended the following
actions to the Department of Public Works and Government
Services:
- Conduct a re-evaluation of the bid
submitted by Oshkosh, including a physical re-evaluation of the
vehicle test protocols, and/or payment of compensation to
Oshkosh.
- Compensate Oshkosh for its reasonable
costs incurred in preparing and proceeding with the CITT
complaint.
The MSVS SMP contract award was announced in July 2015 and
valued at $834 million (CAD). Oshkosh initiated the Challenge
process, which is the legal process designed to provide an
independent review of Canadian Government procurements, for the
MSVS SMP contract award decision announced on January 6, 2016.
Following a four month review, the CITT in part validated Oshkosh’s
claims related to procurement processes, technical compliance and
testing protocols shortfalls during the MSVS SMP evaluation.
The CITT decision issued on May 20, 2016 indicates that a
statement of reasons will be issued at a later date.
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 the Company’s 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 press release, 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 the Company’s 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 and construction seasons; the Company’s estimates of
access equipment demand which, among other factors, is influenced
by customer 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 or payments
thereof; the Company’s ability to utilize material and components
which it has committed to purchase from suppliers; higher material
costs resulting from production variability due to uncertainty of
timing of funding or payments from international defense customers;
risks related to reductions in government expenditures in light of
U.S. defense budget pressures, sequestration and an uncertain DoD
tactical wheeled vehicle strategy; the impact of any DoD
solicitation for competition for future contracts to produce
military vehicles, including a future Family of Medium Tactical
Vehicle production contract; 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/20160524006184/en/
Oshkosh DefenseJennifer ChristiansenVice President, Business
Development920-966-5635jchristiansen@defense.oshkoshcorp.com
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