Military awards armored vehicle deal |
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Thu, 31 May 2007 23:43
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WASHINGTON (AP) - The U.S. Marine Corps Thursday awarded a $623.1 million contract to a Navistar International Corp. subsidiary to build 1,200 armored vehicles for American soldiers in Iraq.The pact, awarded to Atlanta-based International Military and Government LLC, is the largest order to date for Mine Resistant Ambush Protected, or MRAP, vehicles used to reduce the number of U.S. soldiers killed or wounded by roadside bombs.The MRAPs, designed with a V-shaped hull to repel improvised explosive devices, will replace armored Humvees made by privately held AM General Corp.The military selected nine companies earlier this year, including the Navistar unit, to each build four test MRAPs. Delivery of the MRAPs for this contract are expected by February 2008.A Marine Corps-led joint military team wants to get funding approved to deliver nearly 18,000 MRAPs, expected to cost about $20 billion, as quickly as possible to soldiers in combat.The team has up to $8.4 billion to build roughly 7,700 MRAPs this year. The Navistar contract is the second one awarded to date.In April, Ladson, S.C.-based Force Protection Industries Inc. won a $490 million contract for 1,000 MRAP vehicles. The company is teaming up with Falls Church, Va.-based General Dynamics Corp. under a joint venture called 'Force Dynamics' to increase production capacity.Other companies vying for the military's armored-vehicle business include the U.S. subsidiary of British defense contractor BAE Systems PLC, Oshkosh, Wis.-Oshkosh Truck Corp. and Jacksonville, Fla.-based Armor Holdings Inc.Shares of the Warrenville, Ill.-based Navistar jumped $2.50, or 4 percent, to $64.89 in over-the-counter trading Thursday.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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