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The Pentagon on Tuesday awarded a $1.06 billion contract to Oshkosh Corp. (OSK) to build armored patrol trucks for U.S. troops in Afghanistan.

The contract specifies that the Wisconsin-based specialty truck maker produce 2,244 all-terrain trucks.

Other contractors competing for the production contract were Navistar International Corp. (NAV); Force Dynamics LLC, a joint venture between defense contractors General Dynamics Corp. (GD) and Force Protection Inc. (FRPT); and BAE Systems PLC (BA.LN).

As the winning entry in the competition, Oshkosh is positioned to influence the Pentagon debate over a replacement for the military's ubiquitous Humvee utility truck.

The Humvee has been the workhorse for all branches of the military for 25 years, but as a tactical combat vehicle in Iraq and Afghanistan, the truck has been particularly vulnerable to rocket attacks and land mines.

The new all-terrain truck is intended as a smaller, more mobile variant of the Mine Resistant Ambush Protected, or MRAP, trucks deployed in Iraq to counter attacks from roadside bombs. The MRAPs, which were credited with reducing U.S. casualties and helping coalition forces defeat insurgents in Iraq, proved to be too large and top-heavy for Afghanistan's mountainous terrain and rugged, unpaved roads.

-By Bob Tita, Dow Jones Newswires; 312-750-4129; robert.tita@dowjones.com