RTN - $45 Billion Back on the Table for Government Contractors
The U.S. Army has pulled the plug on its planned $45 billion competition to replace its mainstay Bradley Fighting Vehicle, deciding instead to go back to the drawing board and rework what it is looking for in a new armored vehicle.
The decision is a setback for General Dynamics (NYSE: GD), which was the last remaining bidder in the now-canceled Optionally Manned Fighting Vehicle (OMFV) competition. But it could also present an opportunity for BAE Systems (OTC: BAESY) or even Raytheon (NYSE: RTN) to jump back into the competition.
This is the third time since 2009 that the Army's attempt to replace the Bradley has ended in cancellation. This latest effort was run by the Army's new Futures Command, a unit established in 2018 to help speed hardware modernization. But speed ultimately killed the OMFV effort. And the industry is now left waiting to hear how the Army wants to proceed next.