LITTLE ROCK -- Arkansas officials expressed disappointed Tuesday that a military vehicle assembly contract they had hoped to lure with an $87 million incentive package is going to another state.
The Army announced that it is awarding the contract for the Joint Light Tactical Vehicle to Wisconsin-based Oshkosh Corp. The contract is valued at $6.75 billion. Lockheed Martin was among three companies competing for the project, which it intended to build at its Camden facility in southern Arkansas. Indiana-based AM General also competed for the project.
The Arkansas Legislature in May approved issuing bonds if Lockheed won the project. Gov. Asa Hutchinson said he believed lawmakers did the right thing by approving the incentive package he proposed.
"There is no doubt that we were competitive in terms of price, our workforce is second to none, and I remain very grateful for Lockheed Martin's investment and confidence in our Camden facility," the Republican governor said in a statement. "That investment will pay off in the long term."
State officials have said the project would have brought 600 new jobs to Arkansas. It would have been the second time the state issued bonds under a 2004 voter-approved constitutional amendment aimed at helping land major economic deals. Lawmakers two years ago approved $125 million in bonds for a steel mill under construction in east Arkansas.
Mike Preston, executive director of the state Economic Development Commission, said he believed southern Arkansas would still benefit from the state pursuing the project.
"Lockheed Martin has added some of the most advanced technology in manufacturing at their Camden facility and I have no doubt this combined with the area's workforce will bring growth opportunities to the company in the near future," Preston said.
Lockheed Martin said it was disappointed with the decision and hadn't decided whether to challenge the contract being awarded to Oshkosh.
"We believe we presented a very strong solution and await the customers' debrief to hear more detail regarding the reasons behind this selection before making a decision about a potential protest," the company said in a statement.
State Desk on 08/26/2015