The US Army has announced the award of a requirements contract to AM General for the production of up to 20,682 Joint Light Tactical Vehicles (JLTV) and up to 9,883 JLTV trailers.

The total contract value is $8.66bn, and the follow-on production contract amounted to $230.8mn states the US Department of Defense.

The US Army says that “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”.

Bids were solicited via the internet with two received. AM General unseated the Wisconsin-based JLTV manufacturer Oshkosh Defense in the competition to build JLTVs.

Work will occur in South Bend, Indiana, with an estimated completion date of February 8, 2033.

The Fiscal 2023 procurement fund; Army funds, procurement; U.S. Marine Corps funds; research, development, test and evaluation, Army funds; and research, development, test and evaluation, Navy funds in the amount of $230,874,512 were obligated at the time of the award.

But consideration went beyond the cost-effectiveness of this competitive strategy according to the US Department of Defense.

Part of the rationale was to incentivise bidders to propose fuel-efficiency technologies that targeted on-the-move fuel economy improvements and anti-idle capability in support of optimising combat effectiveness.

“It was with the Warfighters in mind that we set out to not only demonstrate our world-class manufacturing capabilities, but also to integrate innovative solutions into the JLTV so they receive the best product for their mission” said Jim Cannon, AM General President and CEO.

Some of the JLTV technology enhancements include enhanced corrosion protection and improved fuel efficiency in addition to continuous developments for an updated Next Generation Vehicle Architecture.