Oshkosh has been directed by the US Army to stop work on the recently awarded $6.75bn contract to manufacture joint light tactical vehicles (JLTV).

The stop-work order comes after one of the losing contractors Lockheed Martin lodged a formal protest with the US Government Accountability Office (GAO) citing concerns regarding the evaluation of its proposal.

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Last month, Oshkosh was selected over Lockheed and AM General for a contract that covers delivery of approximately 17,000 new armoured trucks and sustainment services.

The entire contract is expected to have a maximum potential ceiling of up to $30bn. AM General decided against protesting the contract award, which includes both low rate initial production and full rate production.

"The stop-work order comes after one of the losing contractors Lockheed Martin lodged a formal protest with the US Government Accountability Office."

US Army spokesman Michael Clow was quoted by Reuters as saying that the stop-work order, or stay of contract performance, must be issued under the federal procurement law.

The army remained confident that the new JLTV to be manufactured by Oshkosh will provide a substantial capability improvement to the US soldiers and marines at an affordable cost, Clow added.

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GAO managing associate general counsel for procurement law Ralph White had earlier confirmed to the news agency that a decision on the protest by will be issued by 17 December.

The JLTV programme is a multi-service initiative aimed at replacing the US Army and Marine Corps’ fleet of ageing high-mobility multipurpose wheeled vehicles (HMMWVs), which have been in active service for more than 25 years.

Oshkosh has offered Light Combat Tactical All-Terrain Vehicle, which is said to combine the latest in automotive technologies with the Oshkosh CORE1080 crew protection and TAK-4i independent suspension systems to offer next-generation performance.

Vehicle deliveries were supposed to start approximately ten months after the contract award.