By Debbie Gregory.

Last week, Lockheed Martin Corp. officials announced that they have filed a lawsuit against the Pentagon over the U.S. Army’s decision to award a $6.75 billion contract to Oshkosh Corporation.

The contract is to build a replacement for the Humvee combat vehicle.

The Army plans to buy about 55,000 of the multipurpose vehicles for its troops and the Marine Corps through 2040, spending an estimated $30 billion. Oshkosh in August was awarded the initial order for about 17,000 JLTVs, which are more heavily armored than the Humvees they will replace.

“After careful consideration of all options, Lockheed Martin decided to file a complaint with the Court of Federal Claims concerning our Joint Light Tactical Vehicle (JLTV) contract award process,” the company said in an e-mailed statement. “We look forward to working with all parties involved on the next steps.”

A hearing was scheduled for Friday before Judge Charles Lettow. Lettow granted Lockheed’s motion to seal its complaint against the contract award. Lettow also sealed a Lockheed motion for an injunction in the case, but has not yet ruled on that move, court papers show.

The government’s answer is due by February16th.

Oshkosh Vice President John Urias said he believed the court will uphold the Army’s selection.

Oshkosh Corporation, based in Oshkosh, WI, was ranked the 48^th largest American defense contractor for 2015 by Defense News. Lockheed Martin, based in Bethesda, MD, ranked first.

Urias stated that he had confidence in the Army’s procurement process, which he said included “exhaustive testing and evaluation to ensure our troops get the best vehicle.”

Because Department of Defense spending has been shrinking, competition for military contacts has tightened in recent years. While the number of contract protests filed with the GAO rose 5 percent in 2014 fiscal year, successful protests fell from 17 percent in 13 percent.

By Debbie Gregory.

The Air Force has awarded the contract for the Long Range Strike Bomber, (LRS-B) to Northrop Grumman Corp.  Boeing, which along with partner Lockheed Martin submitted the losing bid, has filed a protest  with the Government Accountability Office (GOA) over the contract.

In a joint statement, Boeing and Lockheed Martin called the selection process for the LRS-B “fundamentally flawed.”

The contract is composed of two parts. The contract for the Engineering and Manufacturing Development, or EMD, phase. The second part of the contract is composed of options for the first 5 production lots, comprising 21 aircraft out of the total fleet of 100. They are fixed price options with incentives for cost.

Northrop Grumman won the award in part because of a projected cost per plane of $511 million in 2010 dollars, well below the Pentagon’s cost cap of $550 million in 2010 dollars. In fiscal 2016 dollars, those figures translate into $563 million and $606 million, respectively. The Boeing/Lockheed team bid $11 billion for EMD, but the Air Force calculated EMD at $21.4 billion, which shifts the risk from the contractor to the government.

“Although it is every competitor’s right to file a protest, the Air Force is confident that the source selection team followed a deliberate, disciplined and impartial process to determine the best value for the warfighter and taxpayer,” said US Air Force spokesman Maj. Robert Leese.

Boeing has little to lose and much to gain from a protest, but faces long odds of a successful outcome.

The LRS-B is designed to replace the Air Force’s aging fleets of bombers – ranging in age from 50+ years for the B-52 to 17+ years for the B-2 – with a long range, highly survivable bomber capable of penetrating and operating in tomorrow’s anti-access, area denial environment. The LRS-B provides the strategic agility to launch from the United States and strike any target, any time around the globe.