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BAE Systems – The worldwide leader in medium tactical vehicles.

Statement                                                                         

December 14, 2009

BAE Systems Responds to U.S. Government Accountability Office’s Family of Medium Tactical Vehicles Protest Ruling

HOUSTON, Texas – The U.S. Government Accountability Office (GAO), the investigative arm of Congress, today informed BAE Systems that it has ruled in favor of a key element of the company’s protest to the U.S. Army’s Family of Medium Tactical Vehicles (FMTV) rebuy contract.  In reaching this decision, the GAO said: “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, […]. “

The GAO recommends the following actions be taken by the Army in the flawed FMTV rebuy award decision: “We recommend that the Army: reevaluate the offerors’ proposals under the capability evaluation factor, in a manner consistent with the terms of the solicitation, […] and make a new selection decision.”

By statute, the Army now has 60 days to inform the GAO of its actions in response to the GAO’s recommendations.

Bob Murphy, president of BAE Systems Land & Armaments group, said, in response to GAO’s ruling:

“BAE Systems is pleased with GAO’s acknowledgement of a key point raised in our protest. We look forward to reviewing the full GAO report and its recommendations so we can fully consider the implications for our business and our options for moving forward. 

“This ruling is potentially good news for our over 3,000 employees in Texas and Michigan, who have built more than 56,000 FMTV vehicles for our nation’s soldiers. We look forward to working with the Army to agree a way forward. In the meantime, we will endeavor to work with our customer to ensure the continued production of FMTVs for our men and women in the armed forces.”

Dennis Morris, president of BAE Systems Global Tactical Systems, said:

“We are confident that our skilled and experienced workforce in Texas and Michigan will put us in the very best position to compete successfully for continued FMTV production, especially since the new Long-Term Armor Strategy cab is our design.

“Our current bridge takes production through 2010, but decisions need to be made by this spring to sustain uninterrupted FMTV production into 2011. Our workforce remains focused and committed to providing our men and women in uniform with the world’s safest, most reliable medium tactical vehicles.

“We are extremely grateful for all the support we received from the Texas community, the Sealy FMTV Task Force, the Greater Houston Partnership and our state and federal elected officials as they stood alongside us throughout this protest period.”

For further information, please contact:

Mike Teegardin, BAE Systems
Tel: +1 281 616 6112   Mobile: +1 281 450 9652
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Lisa Hillary-Tee, BAE Systems
Tel: +1 703 312 6157  Mobile:  +1 571 296 8237
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www.baesystems.com