In a development for US military defence, Sterling Heights, Michigan-based BAE Systems Land & Armaments LP has clinched a contract modification worth $211.5m to enhance the supply of Amphibious Combat Vehicles (ACV). 

The contract, part of a cumulative value of $2.5bn, is set to boost the US military’s capabilities by procuring 40 full-rate production ACV Personnel variants.

The contract modification’s primary objective is to exercise options for procuring 40 full-rate production ACV Personnel variants, accompanied by the necessary production, fielding, and support costs, as well as support and test equipment.

The ACV vehicles, built on an 8×8 platform, are designed to meet the US Marine Corps’ expeditionary requirements, offering open-ocean amphibious capabilities, land mobility, survivability, and adaptability. 

Work-related to this vehicle contract will be carried out in various locations across the United States, including York, Pennsylvania (60%); Aiken, South Carolina (15%); San Jose, California (15%); Sterling Heights, Michigan (5%); and Stafford, Virginia (5%). The anticipated completion date for this contract is February 2026.

The fiscal year 2024 procurement funds allocated by the Marine Corps, totalling $211.5m, will be obligated at the time of the award. The Marine Corps Systems Command, based in Quantico, Virginia, is the contracting activity responsible for overseeing this contract.

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By GlobalData

This contract modification signifies a step in the broader effort to enhance the US Marine Corps amphibious vehicle military capabilities. With BAE Systems at the helm, the military’s acquisition of 40 ACV Personnel variants indicates the ongoing commitment to modernise and strengthen the nation’s defence infrastructure.

This year, BAE Systems also secured a $256.8m contract from the US Marine Corps for the production, fielding, and support of the ACV Personnel and Command variant (ACV-P, ACV-C). This contract encompassed $145.3m allocated for over 25 ACV-P vehicles and $111.5m for more than 14 ACV-C vehicles. 

The US plans to procure 4,350 units of the Amphibious Combat Vehicle from BAE Systems between 2018 and 2040. The programme cost is expected to reach $22.3bn according to GlobalData’s “The Global Military Land Vehicles Market 2023-2033” report.

According to the GlobalData report, BAE Systems Plc will capture a 26.3% share of the military land vehicles market in North America with forecast revenue of $16.6bn over the 2023–33 period, owing to its contract for the Armored Multi-Purpose Vehicle, Family of Amphibious Combat Vehicles, and Improved Recovery Vehicle for the US Army.