Army awards BAE Systems $797M contract to produce armored vehicles
Daily Tribune, Royal Oak, Mich. September 7, 2023
(Tribune News Service) — Defense contractor BAE Systems, which runs a large technical and manufacturing campus in Sterling Heights, Mich., announced it has received a $797 million contract to keep manufacturing the Armored Multi-Purpose Vehicle (AMPV) for the U.S. Army.
Representatives of the British company reported last week it has received the contract to continue production of the AMPV, with additional options for a potential total contract amount of $1.6 billion.
The award brings the AMPV program into full-rate production, making it the first newly designed and built tracked vehicle in the U.S. Army's fleet to reach this production stage in three decades, the contractor announced in a news release.
The AMPV replaces the U.S. Army's fleet of Vietnam War-era M113 family of vehicles. The multi-mission AMPV family of vehicles provides critical survivability, mobility, and interoperability upgrades to the Armored Brigade Combat Team (ABCT).
"Entering full-rate production is a momentous milestone in the lifecycle of a production program for both the U.S. Army and BAE Systems," Jeremy Tondreault, president of the Platforms & Services sector at BAE Systems, said in the release.
"The AMPV is the next generation replacement for the venerable M113, and we are proud that this critical capability is on its way to the men and women who need our most capable combat vehicles on the front lines."
The AMPV program is one of the U.S. Army's top vehicle modernization programs. The Army first awarded BAE Systems the AMPV contract in 2014 and signed a low-rate initial production (LRIP) contract in 2018. The first LRIP vehicle was delivered in August 2020.
The multi-mission AMPV family of vehicles includes:
The AMPV is specifically designed to accommodate future technology needs, including enhanced size, weight, and power provisions for network integration and future mission payloads.
Work on the AMPV program takes place across BAE Systems' industrial network, which in addition to Sterling Heights includes facilities in Aiken, S.C.; Anniston, Ala.; Phoenix; and York, Pa.
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