US Army Issues Two Contract Mods Valued at $575 Million
The US Army has awarded BAE Systems two contract modifications, valued at $575 million, to begin low-rate initial production (LRIP) of the Armored Multi-purpose Vehicle (AMPV), the company announced on 19 February. Total LRIP funding for the programme so far amounts to $873 million, including awards made in January and earlier in February.
The AMPV is a highly mobile, survivable, multipurpose vehicle designed to meet the mission of the Army’s Armored Brigade Combat Teams (ABCT) and addresses a critical need to replace the Vietnam War-era M113. Production will include five variants: command and control (C2); general purpose; medical evacuation; medical treatment; and mortar carrier. It is a mature, cost-effective solution that leverages modern, proven combat vehicle designs. It meets the Army’s force protection and all-terrain mobility requirements, enabling the AMPV to manoeuvre with the rest of the ABCT. Commonality within the ABCT also reduces developmental risk and streamlines maintenance, providing significant cost savings to the Army.
These contracts come following the Engineering, Manufacturing and Development (EMD) phase and a Milestone C decision. Under the earlier EMD award, the company produced and delivered prototype vehicles to the Army for test and evaluation purposes. The initial award in 2014 also provided options to begin the LRIP phase prior to completion of the EMD phase, at which time the company would produce up to approximately 460 additional vehicles for a cumulative contract value of up to $1.2 billion.
“Moving into this phase of the AMPV programme is exciting because it brings soldiers one step closer to deploying this critical capability for completing their missions and coming home safely,” commented AMPV Program Director for BAE Systems’ combat vehicles business, Bill Sheehy. “We have been preparing for this moment and are ready to take this programme to the next stage.”
Work on the AMPV programme will take place at BAE Systems’ facilities in Aiken, SC; Minneapolis, MN; San Jose, CA; Sterling Heights, MI; and York, PA.