On Thursday, the U.S. Department of Defense announced that it has awarded Oshkosh (NYSE:OSK) a $194.9 million firm-fixed-price contract, modifying an existing contract for the purchase of "Family of Medium Tactical Vehicles."
FMTV is a line of armored military trucks previously manufactured by BAE Systems, up until the time when Oshkosh won away the contract to produce them three years ago. That contract, for an indefinite delivery of an indefinite quantity (an "IDIQ" contract) of trucks, anticipated that Oshkosh would ultimately build the U.S. Army as many as 23,000 FMTVs over the course of its relationship. This latest installment is expected to be complete by September 30, 2014.
Shares of Oshkosh rose 1.6% to close at $32.07 Thursday, ahead of the Pentagon's announcement.