Canadian International Trade Tribunal Rules in Favor of Oshkosh Defense Canada for MSVS SMP Challenge
May 24, 2016 | MSVS SMP
CITT Recommends Re-evaluation of Oshkosh Bid and/or Monetary Compensation
OTTAWA, Ontario (May 24, 2016) — 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.
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