The US Court of Federal Claims has instructed Oshkosh to resume work on its recent $6.75bn contract to manufacture joint light tactical vehicles (JLTV) for the US Army.
The court denied Lockheed Martin's request for a preliminary injunction against Oshkosh while hearing its formal protest.
Oshkosh Corporation president and CEO Wilson R. Jones said: "This decision is another indication that the US Army conducted a thorough, methodical procurement process, and we are confident that the original JLTV contract award to Oshkosh will be upheld.
"The Oshkosh JLTV team, including our employees and hundreds of suppliers, is pleased to continue our work to deliver JLTVs to our nation's soldiers and marines."
In August, Oshkosh was selected over Lockheed and AM General to deliver approximately 17,000 armoured trucks and sustainment services under an eight-year contract.
The US Army told the company to stop work after Lockheed Martin lodged a formal protest with the US Government Accountability Office (GAO), citing concerns regarding the evaluation of its proposal, as well as the source selection process.
The JLTV programme aims to replace the US Army and Marine Corps' high-mobility multipurpose wheeled vehicles (HMMWVs), which have been in active service for more than 25 years.
Vehicle deliveries were supposed to start approximately ten months after the contract award.
Image: Oshkosh will resume work on the contract covering the delivery of approximately 17,000 new armoured trucks for US Army. Photo: ©2016 OSHKOSH DEFENSE.