US Army awards Oshkosh Corp. $676M in defence contracts

OSHKOSH, Wis. – A defence contractor in east-central Wisconsin has picked up about $676 million in federal contracts to build and update military vehicles.

The U.S. Army on Monday granted Oshkosh Corp. three renewal contracts totalling $433 million to refurbish a host of outdates military vehicles damaged in combat. The Army on Wednesday also awarded the company an additional $243 million contract to build 675 Joint Light Tactical Vehicles.

The contracts represent the first wave of an award that could net Oshkosh Corp. $30 billion over the next 25 years, USA Today Network-Wisconsin ( ) reported.

The deals are expected to create jobs at Oshkosh Corp., Wisconsin’s largest federal contractor, and boost job growth at the companies that supply it, according to Aina Vilumsons, executive director of the Wisconsin Procurement Institute.

“These contracts are huge for Oshkosh and huge for the state of Wisconsin,” Vilumsons said.

Wisconsin’s rankings in federal contracts have been boosted by Oshkosh Corp.’s awards.

In 2010, Wisconsin ranked 16th in federal-contract dollars nationwide, with Oshkosh Corp. accounting for 73 per cent of the state’s awards. But in fiscal 2014, Wisconsin dropped to 32nd, as Oshkosh Corp’s state-contract share fell to 19 per cent, according to data from the Wisconsin Procurement Institute, an agency that helps businesses navigate government awards.

In fiscal 2015, Oshkosh Corp. accounted for 45 per cent of Wisconsin’s total federal contracts, or about $1.2 billion of the state’s 2.8 billion in federal-contract dollars that year, according to the institute’s data.

From 2010 to 2015, Wisconsin lost about 1,000 defence contracts, dropping from nearly 3,700 to 2,700 as federal defence spending fell over several years. But Oshkosh Corp.’s JLTV contract should help reverse that trend, Vilumsons said.

The company plans to complete the three renewal contracts by November 2017. The fourth contract must be completed by December 2024.


Information from: Oshkosh Northwestern Media,