Defence company Navistar has lost the lawsuit it filed against the US Army’s decision to sole source vehicles from Oshkosh.

In 2009, the US Army awarded an initial five-year contract to Oshkosh Defense to deliver its Family of Medium Tactical Vehicles (FMTV).

Under the contract, Oshkosh was required to produce up to 12,415 trucks, 10,926 trailers, and associated support and engineering services. The contract has an estimated value of $3.023bn.

This decision was protested by Navistar Defense and BAE Systems, Tactical Vehicle Systems on several grounds with the Government Accountability Office (GAO).

The GAO sustained portions of those challenges by Navistar and BAE and recommended the army re-evaluate its decision.

The army re-evaluated the contract decision and awarded it to Oshkosh.

After the completion of the initial contract period, the service chose to continue to source the vehicles from Oshkosh instead of making a new source selection decision, citing urgent needs.

This decision was protested by Navistar with the GAO. However, the company opted to approach the US Court of Federal Claims and filed a lawsuit.

Navistar claims that the US Army failed to justify its decision and was violating the federal acquisition regulations and breached the Competition in Contracting Act.

Additionally, the company claimed the army’s 2019 decision to procure an additional 1,916 vehicles from Oshkosh was improper.

Navistar agreed to a settlement to a 2016 GAO protest raised by it.

The court found that the army’s contract extension beyond the ten-year limit has proper approvals in place.

The final decision as stated by the court was quoted by DefenseNews as saying: “The court agrees with the government that Navistar may not pursue claims related to the decision to extend the contract in 2016 or a challenge of the terms of the FMTV contract as they related to foreign military sales.”

Approximately $6bn has been spent to date on FMTV procurement from Oshkosh. The family of vehicles is designed for a wide variety of missions ranging from transportation of different cargo to missile defence radars.