quote: Force Protection issued a statement late Wednesday that said it was "disappointed" with the report. "We have consistently operated under urgent operational needs and have sought diligently to meet government requirements under extremely short timeframes," the company said. "When delays in deliveries have occurred, it has been representative not of a problem with the vehicle nor the system, but that even a minor glitch in the supply chain can push things back under such tight parameters."
Company spokesman Tommy Pruitt pointed out that the report examined contracts under a program that ended about two years ago, the Joint Explosive Ordnance Disposal Rapid Response Vehicle, which began when the company was just starting to expand its staff and facilities to increase production.
Pruitt acknowledged that Force Protection did fall behind schedule last month, but the company worked through the July 4 holiday and is now caught up.
Under the current Mine Resistant Ambush Protected vehicle program administered by the Marine Corps, the company has won orders for about 1,600 vehicles. "If we were continuing to do a bad job on deliveries, we would not expect to continue getting contracts," Pruitt said.
quote: Force Protection said it was disappointed in the report findings. The audit was based on contracts awarded in 2005 at a time when the company was rapidly expanding, said Tommy Pruitt, a Force Protection spokesman.
Since then, the company has expanded its production capacity and is meeting deadlines, he said.
“We are right now on or ahead of schedule for all the vehicles we have contracts on,” Pruitt said.
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Well at least it reversed promptly and IMO it looks like it will gradually creep up towards the open at EOD.
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Well, I guess this comes as no surprise...another Melissa Davis Article. (read it here and don't give her the "click")
Force Protection (FRPT - Cramer's Take - Stockpickr - Rating) may have run into a bit of a landmine.
For years, the Ladson, S.C., defense contractor monopolized the market for blast-resistant vehicles by boasting superior products and rapid delivery rates. But a damaging government report, published late last month by the Office of the Inspector General, raises questions about both claims.
For starters, the OIG report suggests that another company offered a suitable vehicle - with a faster deliver schedule - even though the military singled out Force Protection as the only viable contender when awarding the company big contracts without seeking competitive bids. Moreover, the report claims that Force Protection repeatedly missed delivery deadlines - despite an expansion project financed by the government - and escaped mandated penalties because of threats to the company's cash flow and overall financial condition.
The government's financial assistance supposedly came with strings attached. With 98% of its orders missing deadlines by early 2006, the report estimates, Force Protection faced up to $6.6 million in liquidated damages. Force Protection would have struggled to cover those extra costs, since - even without them - its auditors raised concerns about the company's ability to survive just a few months later. Losing the military as its only customer might have killed the company altogether.
Instead, Force Protection not only dodged expensive fines but also went on to score additional vehicle contracts and emerge as the leader in a field now crowded with larger competitors. Force Protection, through a joint-venture with heavyweight defense contractor General Dynamics (GD - Cramer's Take - Stockpickr - Rating), currently ranks as the biggest winner under the military's multibillion-dollar Mine-Resistant Ambush-Protected vehicle program.
Force Protection did not immediately respond to a telephone message left by TheStreet.com Thursday morning. However, the company seemed almost apologetic when discussing the situation with Bloomberg News the previous afternoon.
"We have continually given the government our most aggressive, best delivery schedule," Michael Aldrich, Force Protection's vice president of government relations, told Bloomberg News on Wednesday. "With increasing numbers and a more complex flow of materials, it is inevitable that our most aggressive schedule will be disrupted from time to time by lack of critical materials."
However, Aldrich conceded, "because we've been late, we need to provide compensation to the government, and we are negotiating on that."
Meanwhile, Force Protection has failed to monopolize MRAP - as many analysts expected - after the company missed its early deadlines and the military started welcoming other bidders. Moreover, the company faces mounting competition and calls for sturdier vehicles as it seeks to maintain its leadership position under a greatly expanded MRAP II program.
Still, until now, the government has complained little about Force Production's delivery delays. Indeed, in a February article published by the Marine Corps Times, Marine spokesman Bill Johnson-Miles singled out Force Protection as one of two companies that "have shown their reliability to produce vehicles, meaning they meet Marine Corps Systems Command survivability, production number and delivery timeline requirements."
At the same time, Force Protection itself has been boasting about "record" production rates and the company's ability to meet - and even exceed - tight deadlines. But David Phillips, a financial expert known as the "10-Q Detective," has always felt skeptical about Force Protection's claims.
"The company was so concerned with living up to the hype that it kept booking contract after contract," says Phillips, who has no position in Force Protection's stock himself. "But I never felt that management had the skill set - or that the company had the manufacturing capacity - to follow through on that volume."
Force Protection insiders haven't exactly displayed total confidence in the company, either. Notably, even as Force Protection touted its achievements, insiders were busy dumping loads of company shares. Thanks to stock sales, in fact, Force Protection's longtime chairman recently retired from his post as a multimillionaire.
Bulls like to argue that Force Protection executives sold their stock under prearranged plans. However, bears counter that those executives are free to cancel future sales - and might want to if they expected the stock to climb - any time they wish.
To be fair, ordinary shareholders have gotten rich on Force Protection's meteoric rise as well. But Phillips, for one, worries that investors could pay a steep price for their trust in company management in the end.
"The stock went from $3 to $30 on the expectation that the company was delivering the goods," he says. "But to be honest - as the Pentagon pointed out - the company did not deliver on its promises."
After dropping sharply in early trading, Force Protection shares bounced back Thursday to rise a dime to $22.79.
-------------------- "Great Day for Up!"....Dr. Seuss Posts: 3387 | Registered: Mar 2006
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And here's some news to conteract her article. ---------------------------
Press Release Source: Force Protection, Inc.
Force Protection Acquires New Vehicle Production Facility Thursday July 12, 4:15 pm ET
LADSON, S.C.--(BUSINESS WIRE)--Force Protection, Inc. (NASDAQ:FRPT - News) today announced it has purchased a new 430,000 square foot facility in Roxboro, NC. Force Protection plans to use the Person County facility for additional capacity for current and future products including its new Cheetah vehicle line. The company's ownership is effective today.
Force Protection is a leader in producing the world's most advanced mine protected vehicles that have become the gold standard for troop safety against the threat of improvised explosive devices (IEDs), land mines, and roadside bombs.
"This is an exciting development for Force Protection," said COO Raymond Pollard. "This will be a strategically important facility for the company, as it will enable us to continue to ramp up MRAP vehicle deliveries on the Cougar and Buffalo lines while simultaneously producing the next generation Cheetah vehicle series. At this new facility, we will initially have the capacity to produce approximately 2,000 vehicles in 2008."
"Force Protection is excited about establishing this significant new manufacturing capability in North Carolina," said Executive Vice President Dan Busher. "North Carolina and Person County understand the urgency of delivering more of our life saving products to our armed forces and have worked with us to identify the right set of facilities and resources to accomplish that mission. The broad based community involvement in understanding our needs and proposing solutions has really been outstanding."
Force Protection's Cheetah vehicle was recently featured in a Fox News Channel special report, and will join the Cougar and Buffalo vehicles that have an unmatched record for troop safety in Iraq and Afghanistan since 2003.
Force Protection is a leading ballistics research and manufacturing enterprise, specializing in the development and production of highly reinforced armored personnel carriers that are designed to save soldiers' lives by shielding them from the deadly effects of roadside bombs, or IEDs, which have become a leading killer of U.S. troops in Iraq. The trucks' unique, V-shaped hull is designed to deflect the force of IED blasts away from the vehicle, keeping soldiers inside safe and alive, and have become the proven response to an emerging global threat to U.S. troops. Its leading models include the 23 ton "Buffalo", a uniquely-designed mine clearance vehicle with a reinforced mechanical arm, and the family of "Cougar" vehicles, both of whose mine and ballistic protection capabilities are among the most advanced in the world. The vehicles are manufactured outside Charleston, SC. Visit the company's website at www.forceprotection.net.
This release contains forward-looking statements, including, without limitation, statements concerning our business, future plans and objectives and the performance of our products. These forward-looking statements involve certain risks and uncertainties ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward looking statements are further qualified by factors including, but not limited to, those set forth in the company's Form 10-K filing and other filings with the United States Securities and Exchange Commission (available at http://www.sec.gov) and the company's public statements. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law.
Contact: Force Protection, Inc. Media Contact: Policy Impact Communications Jeff Child, 202-737-5339
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Force Protection, Inc. Offers Comment on Report by Pentagon's Inspector General Last update: 7/13/2007 8:30:03 AM\
LADSON, S.C., Jul 13, 2007 (BUSINESS WIRE) -- Force Protection, Inc. (FRPT) today offered comment on a June 27 report issued by the Pentagon's Inspector General that criticized the U.S. Marine Corps for awarding sole source armored vehicle contracts to the company in 2005, despite delays in delivering the vehicles on schedule.
"Like all Americans, we are disappointed with some of the findings in the Inspector General's report," said Force Protection CEO Gordon McGilton. "From its beginnings, Force Protection's objective has been to provide the finest lifesaving vehicles in the world. We have consistently operated under urgent operational needs and have sought diligently to meet government requirements under extremely short timeframes. However, we believe that recent press coverage on the report has missed some key findings. As stated clearly on page 26, 'the Cougars and the JERRVs proved to have significant and operational value to our warfighters on the field.' The report also states that, 'We reviewed documentation from users and classified data on vehicle performance and learned that the vehicles performed well and saved lives.'
"When past delivery delays have occurred it has been representative that even a minor glitch in the supply chain can push things back under such tight parameters," McGilton said. "Enormous progress has been made in fielding this proven, battlefield solution years ahead of traditional defense schedules. Tens of thousands of our servicemen and women are alive and have reunited with their families and friends at home because of the protection provided by our vehicles. Force Protection will continue to work with the Department of Defense to produce and improve upon the best blast and ballistic protection technology in the world." Force Protection's vehicles have become the gold standard in troop protection against IEDs, roadside bombs, and land mines. The vehicles have logged more than three million hours of heavy combat operations and withstood thousands of blast attacks in Iraq and Afghanistan since 2003.
Force Protection is a leading ballistics research and manufacturing enterprise, specializing in the development and production of highly reinforced armored personnel carriers that are designed to save soldiers' lives by shielding them from the deadly effects of roadside bombs, or IEDs, which have become a leading killer of U.S. troops in Iraq. The trucks' unique, V-shaped hull is designed to deflect the force of IED blasts away from the vehicle, keeping soldiers inside safe and alive, and have become the proven response to an emerging global threat to U.S. troops. Its leading models include the 23 ton "Buffalo", a uniquely-designed mine clearance vehicle with a reinforced mechanical arm, and the family of "Cougar" vehicles, both of whose mine and ballistic protection capabilities are among the most advanced in the world. The vehicles are manufactured outside Charleston, S.C. Visit the company's website at .
This release contains forward-looking statements, including, without limitation, statements concerning our business, future plans and objectives and the performance of our products. These forward-looking statements involve certain risks and uncertainties ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward looking statements are further qualified by factors including, but not limited to, those set forth in the company's Form 10-K filing and other filings with the United States Securities and Exchange Commission (available at ) and the company's public statements. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law. SOURCE: Force Protection, Inc. Force Protection, Inc. Media: Policy Impact Communications Jeff Child, 202-737-5339
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Noticed this paragraph to be the opposite of what my best friend Melissa said.
Force will continue to ``exceed expectations,'' Kavanaugh, 47, said in an interview one week after stepping down on June 21. His share sales were part of a prearranged plan for company executives, which can't be altered once put into place, he said.Posts: 205 | Registered: Mar 2006
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Guess we'll see what Monday brings. Looks like AH got a $518mil contract for 1170 vehicles.
-------------------- Good judgment comes from experience. Unfortunately, experience usually comes from bad judgment. Posts: 205 | Registered: Mar 2006
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And Melissa once again. I refuse to read it. More mindless crap. I think she's trying for the crushing blow to FRPT.
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International Military and Government LLC, Warrenville, Ill., is being awarded $413,869,860 for firm-fixed-priced, delivery order #0004 under previously awarded contract (M67854-07-D-5032) for an additional 755 Category I (CAT I) Mine Resistance Ambush Protected (MRAP) Low Rate Initial Production (LRIP) vehicles. The CAT I is an MRAP vehicle provided for the Marine Corps and other Joint Forces that is needed in convoy operations. The MRAP vehicles are required to increase survivability and mobility of troops operating in a hazardous fire area against known threats such as small arms fire, rocket propelled grenades, and improvised explosive devices. Work will be performed in WestPoint, Miss., and work is expected to be completed by February 2008. Contract funds will not expire at the end of the current fiscal year. This contract was competitively procured. The Marine Corps Systems Command, Quantico, Va., is the contracting activity.
-------------------- Good judgment comes from experience. Unfortunately, experience usually comes from bad judgment. Posts: 205 | Registered: Mar 2006
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It was for Cat I and my understanding is FRPT doesn't really have the delivery system for their Cat I vehicles in place yet. Correct me if I'm wrong. Bring on some Cat II and III contracts so FRPT doesn't get hammered any further!!
-------------------- Good judgment comes from experience. Unfortunately, experience usually comes from bad judgment. Posts: 205 | Registered: Mar 2006
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Alright this is pissing me off. How many vehicles has the street been forecasting that FRPT gets????? All of them? FRPT is the only one that gets slammed or even goes negative when someone else wins a contract.
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Disregard the Cat I comments....I'm thinking of the cheetah program. Melissa on Monday or Tuesday, guarantee it.
-------------------- Good judgment comes from experience. Unfortunately, experience usually comes from bad judgment. Posts: 205 | Registered: Mar 2006
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Anybody looking at buying more? It may be a victim of the broader market and also some sympathy with SPAR's disappointing earnings.
-------------------- Good judgment comes from experience. Unfortunately, experience usually comes from bad judgment. Posts: 205 | Registered: Mar 2006
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Is there going to be news of a contract after hours? Or did people realize FRPT has pulled back way too far? Up about 6.5%!
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Well, no contract reported and the rally, like the broader market, didn't hold. Still an up day though.
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Force Protection, Inc. Awarded $5.3 Million Contract For New ILAV Vehicles and Equipment Wednesday August 1, 10:05 am ET
LADSON, S.C.--(BUSINESS WIRE)--Force Protection, Inc. (NASDAQ:FRPT - News) today announced it has received work totaling $5.3 million to produce more than 40 articulating interrogation arms for the Iraqi Light Armored Vehicle (ILAV). As part of this award, a total of 22 additional new vehicles will also be produced at the Ladson, SC facility. Deliveries are scheduled for December 2007.
Used to detect and remove suspected explosive threats, the articulated arm will be integrated into existing ILAV vehicles produced by BAE Land & Armament Systems as prime contractor and Force Protection as subcontractor. An award for 378 ILAVs was received in May 2006 to support the U.S. Army's training and mission transition efforts with Iraqi armed forces.
"This contract represents an important component of Force Protection's operations," said Force Protection CEO Gordon McGilton. "We have always been committed to the continuing innovation and enhancement of our counter-IED technology. We are pleased with the opportunity to provide additional equipment that will expand upon the capabilities of the ILAV and provide needed protection for the new Iraqi ground forces."
The ILAV is based on the proven design of the Cougar vehicle produced by Force Protection, which has been deployed in Iraq and Afghanistan since 2004. The first ILAVs were delivered to Iraq 90 days after the contract was awarded.
Force Protection is a leading ballistics research and manufacturing enterprise, specializing in the development and production of highly reinforced armored personnel carriers that are designed to save soldiers' lives by shielding them from the deadly effects of roadside bombs, or IEDs, which have become a leading killer of U.S. troops in Iraq. The trucks' unique, V-shaped hull is designed to deflect the force of IED blasts away from the vehicle, keeping soldiers inside safe and alive, and have become the proven response to an emerging global threat to U.S. troops. Its leading models include the 23 ton "Buffalo", a uniquely-designed mine clearance vehicle with a reinforced mechanical arm, and the family of "Cougar" vehicles, both of whose mine and ballistic protection capabilities are among the most advanced in the world. The vehicles are manufactured outside Charleston, S.C. Visit the company's website at www.forceprotection.net.
This release contains forward-looking statements, including, without limitation, statements concerning our business, future plans and objectives and the performance of our products. These forward-looking statements involve certain risks and uncertainties ultimately may not prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. The company cautions that these forward looking statements are further qualified by factors including, but not limited to, those set forth in the company's Form 10-K filing and other filings with the United States Securities and Exchange Commission (available at http://www.sec.gov) and the company's public statements. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise, except as required by law.
Contact: Media Contact: Policy Impact Communications Jeff Child, 202-737-5339
-------------------------------------------------------------------------------- Source: Force Protection, Inc.
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Thanks Jo! Up 8% today so far. Small contract though, but good. It shows that Iraqis will need these things too, not just the U.S. Whether we leave tomorrow or not, the Iraqis will still face the IED threat. I think the market for MRAPs is far bigger than anyone thinks.
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