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Wednesday, May 25, 2016

Oshkosh wins challenge on CAF Mack Truck Contract

By: David Pugliese
U.S. defence firm Oshkosh is alleging that the Canadian government unfairly awarded a $834 million contract that would see Mack Trucks deliver vehicles, such as the one in the photo, to the Canadian Forces. Photo courtesy Mack Trucks 
Oshkosh Defense Canada, Inc., an Oshkosh Corporation company, announced today that the Canadian International Trade Tribunal ruled in the firm’s favour regarding its legal challenge to the Medium Support Vehicle System’s Standard Military Pattern (SMP) contract award decision.

The CITT ruling recommends that Public Services and Procurement Canada re-evaluate Oshkosh’s bid and conduct a re-evaluation of vehicles for the project. Failing that the government could provide monetary compensation to Oshkosh.

The first of the new trucks, coming from Mack, have successfully undergone testing and are expected to be soon delivered to the Canadian Forces.

“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,” Wilson Jones, president and chief executive officer of Oshkosh Corporation, said in a statement. “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 government:

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 contract, valued at $834 million, was awarded in July to Mack.

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 firm noted.

The Department of National Defence referred questions to Public Services and Procurement Canada. That department has yet to respond.