Canadian International Trade Tribunal Rules in Favor of Oshk
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This news is classified in: Defense Combat Vehicles / Artillery

May 24, 2016

Canadian International Trade Tribunal Rules in Favor of Oshkosh Defense Canada for MSVS SMP Challenge

CITT Recommends Re-evaluation of Oshkosh Bid and/or Monetary Compensation

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:

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  • 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.

Oshkosh Corporation (NYSE: OSK)
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