The US Government Accountability Office (GAO) has dismissed Lockheed Martin's formal protest concerning a $6.75bn deal between Oshkosh Defense and the US Army.
The deal being protested was for the production of joint light tactical vehicles (JLTV) for army use.
US GAO said in a statement: "Our office will not decide a protest where the matter involved is the subject of litigation before a court of competent jurisdiction.
"Based on Lockheed's submission of its notice to the US Court of Federal Claims stating its intent to file a protest with the Court involving the same subject matter as the protests pending before our Office, we are closing our files without further action."
As part of the decision, the US Army's Tank-automotive and Armaments Command (TACOM) Life Cycle Management Command (LCMC) has allowed Oshkosh to resume work on the JLTV production contract.
In August, Oshkosh was selected over Lockheed and AM General for a contract covering the delivery of approximately 17,000 new armoured trucks and sustainment services.
Following the decision, Lockheed lodged a formal protest with the GAO, citing concerns regarding the evaluation of its proposal, as well as the source selection process.
The contract will see Oshkosh manufacture the vehicles over a period of eight years, with delivery scheduled to begin within ten months.