I posted this in mid Jan/09 regarding Force Protection Industries. An example of potential US style type contract at 2.5B potential
If you go to the DND web site (May 7,2007 arcticle) , it turns out that the CDN military uses the Buffalo and Cougar US brand military vechicles deployed in Afganistan made by you guessed it.....Force Protection Industries (South Carolina based) acquired from the US Army.
So perhaps this may be a possible US Military angle contract connection. Cymat could also contribute on the Blast Mitigation side from the Aigis "TabreShield" product which integrates SAF for blast resistant technology as well. Just think of the many possibilities beyond these, plus all other possibilities in Architectural and Auto.
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More news on the US Joint Light Tactical Vechicle program....could be worth 2.5Billion, awards timeframe is Mar/Apr....sure would be nice to get a small slice of this.
By Shara Tibken
Of DOW JONES NEWSWIRES
Shares of
Force Protection Inc. (FRPT) hit a fresh 52-week high on hopes the defense contractor will be successful in its bid for a contract to build new mine-resistant ambush-protected all-terrain vehicles (M-ATV) for the U.S. military.
"I think investors are very enthusiastic about its prospects on the new competition for a lighter mine-resistant ambush-protected vehicle, also known as M-RAP," Stanford Group analyst Josephine Millward said in an interview. Millward added that the vehicles are meant for use in the rough terrain in Afghanistan.
Force Protection spokesman James Palczynski said in an interview with Dow Jones that Force Protection submitted the proposal to the U.S. Army Tank-automotive and Armaments Command (TACOM) through Force Dynamics, its
joint venture with
General Dynamics Corp. (GD), which Millward said boosted shares Tuesday.
In recent trading, shares jumped 11% to $6.98. Shares rose as much as 14% to $7.22, a 52-week high for the company.
A spokesman for Force Dynamics said the company felt "good" about its proposal.
"We think we have an excellent vehicle that has gone through a long development history that meets all the requirements," Force Dynamics' Palczynski said. "We think we have an excellent solution."
Stanford's Millward said she doesn't believe the partnership with General Dynamics really changes Force Protection's odds of winning the contract and said the odds of winning are not greater than 50% due to the tough competition ahead. But she said in a note she thinks Force Protection is "one of the top contenders" and could be "one of several vendors receiving initial production awards in March/April for additional testing."
Competitor
Oshkosh Corp. (OSK) said Tuesday it submitted a proposal for the program last week, and an article from Inside the Army said nearly 140 companies were represented at the pre-solicitation conference last month, including
Navistar International Corp. (NAV), which has won one past awards for the Joint Light Tactical Vehicle contest.
Stanford's Millward said in a note that the contract "represents a $2.5 billion opportunity next year for Force Protection." She added she believes the military will likely purchase 5,000 units of the M-ATV, higher than the 2,000 units expected by most in the industry.
-By Shara Tibken, Dow Jones Newswires; 201-938-2168; shara.tibken@dowjones.com
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