Oshkosh has been directed by the US Army to stop work on the recently awarded $6.75bn contract to manufacture joint light tactical vehicles (JLTV).
The stop-work order comes after one of the losing contractors Lockheed Martin lodged a formal protest with the US Government Accountability Office (GAO) citing concerns regarding the evaluation of its proposal.
Last month, Oshkosh was selected over Lockheed and AM General for a contract that covers delivery of approximately 17,000 new armoured trucks and sustainment services.
The entire contract is expected to have a maximum potential ceiling of up to $30bn. AM General decided against protesting the contract award, which includes both low rate initial production and full rate production.
US Army spokesman Michael Clow was quoted by Reuters as saying that the stop-work order, or stay of contract performance, must be issued under the federal procurement law.
The army remained confident that the new JLTV to be manufactured by Oshkosh will provide a substantial capability improvement to the US soldiers and marines at an affordable cost, Clow added.
GAO managing associate general counsel for procurement law Ralph White had earlier confirmed to the news agency that a decision on the protest by will be issued by 17 December.
The JLTV programme is a multi-service initiative aimed at replacing the US Army and Marine Corps' fleet of ageing high-mobility multipurpose wheeled vehicles (HMMWVs), which have been in active service for more than 25 years.
Oshkosh has offered Light Combat Tactical All-Terrain Vehicle, which is said to combine the latest in automotive technologies with the Oshkosh CORE1080 crew protection and TAK-4i independent suspension systems to offer next-generation performance.
Vehicle deliveries were supposed to start approximately ten months after the contract award.