AM General has been awarded a contract of up to $8.66 billion to build more Joint Light Tactical Vehicles (JLTV) for the US Army.

The American automotive manufacturer clinched the recompete contract initially awarded to Oshkosh Defense in 2015.

The US Army can exercise the option to recompete contracts to determine if other defense firms will build a product at reduced cost.

Oshkosh had already been awarded a $6.7-billion contract for low-rate initial production of 16,901 JLTVs before the service decided to open bidding again.

“One of the key strategies of the JLTV program from its earliest days was to leverage competition to control cost and maximize buying power for the government,” program executive officer Samuel Peterson said.

As part of the recompete contract, AM General will manufacture an estimated 20,000 JLTVs, along with around 10,000 trailers.

The deal also includes technology enhancements for the tactical vehicles.

Integrating Innovative Solutions

Designed to replace the US Army’s Humvee vehicles, the JLTV offers “protected, sustained, and networked mobility” for military personnel deployed on various missions.

It is also capable of carrying up to 5,100 pounds (2,313 kilograms) of payload.

According to AM General, the company is “well positioned” to evolve next-generation JLTVs to meet mission US armed forces requirements.

It will work to enhance the tactical vehicles’ corrosion protection and improve their fuel efficiency.

“It was with the warfighters in mind that we set out to not only demonstrate our world-class manufacturing capabilities, but also to integrate innovative solutions into the JLTV so they receive the best product for their mission,” company president Jim Cannon stressed.

Work for the contract will be performed at AM General’s dedicated military production facility in Indiana.