CITT Recommends Re-evaluation of Oshkosh Bid and/or Monetary
Compensation
OTTAWA, Ontario--(BUSINESS WIRE)--
Oshkosh Defense Canada, Inc., an Oshkosh Corporation (NYSE: OSK)
company, announced today that the Canadian International Trade Tribunal
(CITT) ruled in the Company’s favor regarding its legal challenge to the
Medium Support Vehicle System (MSVS) Standard Military Pattern (SMP)
contract award decision. CITT’s ruling recommends that Canada’s
Department of Public Works and Government Services take action,
including re-evaluation of Oshkosh’s bid and physical re-evaluation of
vehicles, and/or monetary compensation to Oshkosh.
“We are pleased with CITT’s ruling, which validates our concerns and
defends the fair and transparent procurement process that the Canadian
Government strives to implement,” said Wilson Jones, president and chief
executive officer of Oshkosh Corporation. “Following years of work and
investment, the Oshkosh team firmly believes we offered the most capable
vehicle for the Department of National Defence, and overall best value
for Canada. While we are disappointed in the significant errors found in
the conduct of the MSVS evaluation process, we look forward to a fair
and timely implementation of the Tribunal’s recommendations.”
As part of its determination, CITT recommended the following actions to
the Department of Public Works and Government Services:
-
Conduct a re-evaluation of the bid submitted by Oshkosh, including a
physical re-evaluation of the vehicle test protocols, and/or payment
of compensation to Oshkosh.
-
Compensate Oshkosh for its reasonable costs incurred in preparing and
proceeding with the CITT complaint.
The MSVS SMP contract award was announced in July 2015 and valued at
$834 million (CAD). Oshkosh initiated the Challenge process, which is
the legal process designed to provide an independent review of Canadian
Government procurements, for the MSVS SMP contract award decision
announced on January 6, 2016. Following a four month review, the CITT in
part validated Oshkosh’s claims related to procurement processes,
technical compliance and testing protocols shortfalls during the MSVS
SMP evaluation.
The CITT decision issued on May 20, 2016 indicates that a statement of
reasons will be issued at a later date.
About Oshkosh Defense
Oshkosh Defense is a leading provider of tactical wheeled vehicles and
life cycle sustainment services worldwide. Oshkosh Defense Canada, Inc.
is a wholly-owned subsidiary of Oshkosh Defense, LLC, located in Ottawa,
Ontario.
For decades Oshkosh Defense has been mobilizing military and security
forces around the globe by offering a full portfolio of heavy, medium,
light and highly protected military vehicles to support our customers’
missions. In addition, Oshkosh offers advanced technologies and vehicle
components such as TAK-4® independent suspension systems,
TerraMax® unmanned ground vehicle solutions, Command Zone™
integrated control and diagnostics system, and ProPulse®
diesel electric and on-board vehicle power solutions, to provide our
customers with a technical edge as they fulfill their missions. Every
Oshkosh vehicle is backed by a team of defense industry experts and
complete range of sustainment and training services to optimize fleet
readiness and performance. Oshkosh Defense, LLC is an Oshkosh
Corporation company [NYSE: OSK].
To learn more about Oshkosh Defense, please visit us at www.oshkoshdefense.com.
About Oshkosh Corporation
Oshkosh Corporation is a leading designer, manufacturer and marketer of
a broad range of access equipment, commercial, fire & emergency,
military and specialty vehicles and vehicle bodies. Oshkosh Corporation
manufactures, distributes and services products under the brands of
Oshkosh®, JLG®, Pierce®, McNeilus®,
Jerr-Dan®, Frontline™, CON-E-CO®, London®
and IMT®. Oshkosh products are valued worldwide by rental
companies, concrete placement and refuse collection businesses, fire &
emergency departments, municipal and airport services and defense
forces, where high quality, superior performance, rugged reliability and
long-term value are paramount. For more information, please visit www.oshkoshcorporation.com.
®, TM All brand names referred to in this news release are
trademarks of Oshkosh Corporation or its subsidiary companies.
Forward-Looking Statements
This press release contains statements that the Company believes to be
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than
statements of historical fact, including, without limitation, statements
regarding the Company’s future financial position, business strategy,
targets, projected sales, costs, earnings, capital expenditures, debt
levels and cash flows, and plans and objectives of management for future
operations, are forward-looking statements. When used in this press
release, words such as “may,” “will,” “expect,” “intend,” “estimate,”
“anticipate,” “believe,” “should,” “project” or “plan” or the negative
thereof or variations thereon or similar terminology are generally
intended to identify forward-looking statements. These forward-looking
statements are not guarantees of future performance and are subject to
risks, uncertainties, assumptions and other factors, some of which are
beyond the Company’s control, which could cause actual results to differ
materially from those expressed or implied by such forward-looking
statements. These factors include the cyclical nature of the Company’s
access equipment, commercial and fire & emergency markets, which are
particularly impacted by the strength of U.S. and European economies and
construction seasons; the Company’s estimates of access equipment demand
which, among other factors, is influenced by customer historical buying
patterns and rental company fleet replacement strategies; the strength
of the U.S. dollar and its impact on Company exports, translation of
foreign sales and purchased materials; the expected level and timing of
U.S. Department of Defense (“DoD”) and international defense customer
procurement of products and services and funding or payments thereof;
the Company’s ability to utilize material and components which it has
committed to purchase from suppliers; higher material costs resulting
from production variability due to uncertainty of timing of funding or
payments from international defense customers; risks related to
reductions in government expenditures in light of U.S. defense budget
pressures, sequestration and an uncertain DoD tactical wheeled vehicle
strategy; the impact of any DoD solicitation for competition for future
contracts to produce military vehicles, including a future Family of
Medium Tactical Vehicle production contract; the Company’s ability to
increase prices to raise margins or offset higher input costs;
increasing commodity and other raw material costs, particularly in a
sustained economic recovery; risks related to facilities expansion,
consolidation and alignment, including the amounts of related costs and
charges and that anticipated cost savings may not be achieved; global
economic uncertainty, which could lead to additional impairment charges
related to many of the Company’s intangible assets and/or a slower
recovery in the Company’s cyclical businesses than Company or equity
market expectations; projected adoption rates of work at height
machinery in emerging markets; the impact of severe weather or natural
disasters that may affect the Company, its suppliers or its customers;
risks related to the collectability of receivables, particularly for
those businesses with exposure to construction markets; the cost of any
warranty campaigns related to the Company’s products; risks related to
production or shipment delays arising from quality or production issues;
risks associated with international operations and sales, including
compliance with the Foreign Corrupt Practices Act; the Company’s ability
to comply with complex laws and regulations applicable to U.S.
government contractors; cybersecurity risks and costs of defending
against, mitigating and responding to a data security breach; and risks
related to the Company’s ability to successfully execute on its
strategic road map and meet its long-term financial goals. Additional
information concerning these and other factors is contained in the
Company’s filings with the Securities and Exchange Commission. All
forward-looking statements speak only as of the date of this press
release. The Company assumes no obligation, and disclaims any
obligation, to update information contained in this press release.
Investors should be aware that the Company may not update such
information until the Company’s next quarterly earnings conference call,
if at all.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160524006184/en/
Oshkosh Defense
Jennifer Christiansen
Vice President, Business
Development
920-966-5635
jchristiansen@defense.oshkoshcorp.com
Source: Oshkosh Defense