BAE Systems Wins $1.2 Billion Contract On Armored Multi-Purpose Vehicle Program

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  • 09:05 AM, December 24, 2014
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BAE Systems Wins $1.2 Billion Contract On Armored Multi-Purpose Vehicle Program

BAE Systems has won a contract worth $1.2 billion from the US 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 US Army with a highly survivable and mobile fleet of vehicles that addresses a critical need to replace the Vietnam-era M113s.

“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,” said Mark Signorelli, vice president and general manager of Combat Vehicles at BAE Systems.

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.

After EMD phase 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. Immediately, the work on the contract is expected to start primarily at the company’s York, Pennsylvania, and Sterling Heights, Michigan, facilities. 

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