The Bot Board (BOTS)

[SPIN]

Force Protection May Win Army Armored Truck Award (Update1)

By Edmond Lococo

March 9 (Bloomberg) -- Force Protection Inc., the biggest maker of blast-resistant trucks for the U.S. Marine Corps, may win a U.S. Army order to make vehicles used to clear roadways of mines and explosives in Iraq valued at about $144 million.

The Army on Feb. 16 issued a notice of its plan to buy 180 of Force Protection's Buffalo trucks, without a competition, and allowed protests of the decision to be filed until March 5. The deadline to protest the uncontested award passed this week without response from potential competitors, Army spokesman Don Jarosz said in an interview today.

The Army plans on awarding the contract in June or July, Jarosz said. The Buffalo is the largest of three types of mine- protected trucks used by the Army and Marines, and features a 30-foot robotic arm with iron claw to clear explosives. Assistant Secretary of the Army Claude Bolton said yesterday the two services may buy 4,000 to 6,600 mine-protected vehicles.

``There is no competitor out there for the Buffalo currently, so it makes sense they would get this sole-source award,'' said Alan Albrecht, an individual investor who said he holds about 400,000 shares of Force Protection among his private investments. ``Production is ramping up quickly.''

The Buffalo costs about $800,000 per vehicle, Force Protection Vice President Michael Aldrich said. At that price, a purchase of 180 trucks would be worth about $144 million.

Shares of Force Protection rose $1, or 6.2 percent, to $17.15 at 4 p.m. New York time in Nasdaq Stock Market composite trading. They have surged more than ninefold in the past year.

Cougar in Competition

The Army purchases would add to the approximately 100 Buffalo trucks already ordered by the service, and would follow a $16.3 million Marine Corps order for 19 of the vehicles on March 6, Aldrich said.

``They put out a pre-solicitation notice when they intend to make a sole-source award so that anyone who wishes to protest can do so,'' Aldrich said in an interview today.

``We have not received any protests,'' Jarosz said.

Force Protection based in Ladson, South Carolina also is competing for awards to build the smaller mine-protected trucks with its Cougar vehicle. The Buffalo and Cougar have already logged more than two million hours of heavy combat operations and withstood more than 2,000 explosive attacks since they were first deployed in 2003, the company has said.

To contact the reporter on this story: Edmond Lococo in Boston at [e-mail].

Last Updated: March 9, 2007 16:27 EST

http://www.bloomberg.com/apps/news?pid=conewsstory&refer=conews&tkr=FRPT:US&sid=asKwmJoP...