BAE Systems was awarded a contract worth up to $1.2 billion from the U.S. Army for the Engineering, Manufacturing, and Development (EMD) and Low-Rate Initial Production (LRIP) of the Armored Multi-Purpose Vehicle (AMPV). The program aims to provide the U.S. Army with a highly survivable and mobile fleet of vehicles that addresses a critical need to replace the Vietnam-era M113s.
“This award represents a significant milestone for the U.S. Army and BAE Systems,” said Mark Signorelli, vice president and general manager of Combat Vehicles at BAE Systems. “The AMPV will provide a substantial upgrade over the Army’s current personnel carrier fleet, increasing the service’s survivability, force protection, and mobility while providing for future growth potential. It also confirms BAE Systems’ role as a leading provider of combat vehicles.”
The initial award is for a 52-month base term, valued at approximately $383 million, during which BAE Systems will produce 29 vehicles across each of the variants. The award also provides an option to begin the LRIP phase immediately following the current EMD phase, at which time the company would produce an additional 289 vehicles for a total contract value of $1.2 billion.
The AMPV capitalizes on proven Bradley and M109A7 designs, meeting the Army’s force protection and all-terrain mobility requirements while enabling the AMPV to maneuver with the rest of the Armored Brigade Combat Team (ABCT). The maximized commonality within the AMPV family of vehicles and the ABCT will reduce risk and provide significant cost savings to the Army.
The BAE Systems AMPV team includes DRS Technologies, Northrop Grumman Corporation, Air Methods Corporation, and Red River Army Depot. Work on the contract is expected to begin immediately and will take place primarily at the company’s York, Pennsylvania, and Sterling Heights, Michigan, facilities.
Source: BAE Systems PLC (LSE: BAES.L)
Date: Dec 24, 2014