Stewart & Stevenson, Oshkosh battle for Army contract

Stewart & Stevenson, which has built military vehicles since 1991 at its Sealy plant west of Houston, is facing some rare competition, according to the Houston Chronicle. The newspaper says Stewart & Stevenson is battling with Oshkosh Truck Corp for the $1.7 billion Army contract, with the winner expected to be announced by the end of the month. The contract is for 7,000 medium-sized trucks and 3,800 trailers. In 1991, Stewart & Stevenson won a contract to build 11,000 trucks. Seven years later, the company negotiated a contract to build 8,000 more. The newspaper said that in 1998, the General Accounting Office cited design problems with the company's trucks that were later resolved. The Chronicle quoted Dennis Dellinger, president and chief operating officer of Stewart & Stevenson Tactical Vehicle Systems, as saying the battle with Oshkosh is "a very tough competition." It said Stewart & Stevenson produces 2.5-ton and 5-ton FMTV trucks, and that the company said its trucks have a 98 percent operational readiness rating, higher than any other vehicle the Army has fielded.