BAE Systems has won a $184m Lot I full-rate production (FRP) contract from the US Marine Corps (USMC) for 36 amphibious combat vehicles (ACV).

The FRP decision follows the declaration of ACV’s initial operational capability (IOC) last month.

The award marks a significant milestone for the company’s ACV Family of Vehicles (ACV FOV) programme.

Since 2018, BAE Systems has been in low-rate production on the personnel carrier variant in the ACV family.

BAE Systems noted that the FRP Lot I is planned to increase to 72 vehicles early next year, with the options to grow to 80 vehicles per annum over five years.

BAE Systems amphibious programmes director John Swift said: “As the ACV enters into service it will provide highly advanced solutions for conducting maritime-based warfare operations and will play a vital role in the Marine Corps’ complex and challenging missions.

“For BAE Systems, full-rate production validates years of dedication and teamwork in partnership with the Marines to introduce this capability to the warfighter and leave our adversaries on the battlefield at a marked disadvantage.”

The ACV mobile, survivable and adaptable platform has been developed by BAE Systems with teammate IVECO Defence Vehicles.

It is designed to carry out rapid ship-to-shore operations, enabling marines to successfully complete their missions.

The ACV family comprises additional variants, including command and control, 30mm medium calibre turret, and recovery versions.

Powered by a six-cylinder, 690hp engine, the vehicle is capable of land speeds in excess of 55mph.

Production and support of the ACVs is taking place at BAE Systems’ locations in the US states of Virginia, California, Michigan, South Carolina and Pennsylvania.

In February, BAE secured a contract worth $113.5m to supply an additional 26 ACVs to the USMC.