BAE and Navistar Protest Of Oshkosh's (OSK) Armored-Vehicle Contract Upheld

BAE Systems and Navistar International (NYSE: NAV) won a key protest today on the $3 billion Army armored-vehicle contract that was previously awarded to Oshkosh (NYSE: OSK).

In a statement today the U.S. Government Accountability Office said, "Our Office sustained, or upheld, the protests today. Our review of the record led us to conclude that the Army's evaluation was flawed with regard to the evaluation of Oshkosh's proposal under the capability evaluation factor, and the evaluation of Navistar's past performance. We therefore sustained Navistar's and BAE's protests. We also denied a number of Navistar's and BAE's challenges to the award to Oshkosh, including challenges to the evaluation of Oshkosh's price."

The GAO is recommending that the Army reevaluate the proposals. If at the conclusion of the reevaluation Oshkosh is not found to offer the best value, the GAO said the agency should terminate Oshkosh's contract.

Shares of Oshkosh have fallen 14 percent on the decision. Navistar is up 4 percent.

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