BAE Systems American land and armaments division has received a $169.3 million contract to manufacture an additional 33 amphibious combat vehicles for the U.S. Marine Corps.

The U.S. Marine Corps exercised options under the ACV production contract with a potential value of up to $3.35 billion, the U.S. Department of Defense said Wednesday.

The following is the contract notice:

“BAE Systems Land & Armaments L.P., Sterling Heights, Michigan, is awarded a $169,334,012 modification (P00139) to previously awarded firm-fixed-price contract (M67854-16-C-0006) for Amphibious Combat Vehicles (ACV). The total value of the contract if all options are exercised is $3,354,159,920.

This modification provides for the exercise of options for the procurement of 33 full rate production ACVs and associated production, and fielding and support costs. Work will be performed in York, Pennsylvania (60%); Aiken, South Carolina (15%); San Jose, California (15%); Sterling Heights, Michigan (5%); and Stafford, Virginia (5%), with an expected completion date of August 2023. F

iscal 2022 procurement (Marine Corps) funds in the amount of $169,334,012 will be obligated at the time of award, and will not expire at the end of the current fiscal year. Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-16-C-0006).”

The U.S. Marines initially procured 36 vehicles from a BAE-Iveco team in December 2020.

George Allison
George has a degree in Cyber Security from Glasgow Caledonian University and has a keen interest in naval and cyber security matters and has appeared on national radio and television to discuss current events. George is on Twitter at @geoallison

35 COMMENTS

    • The US desperately needs them. This month they banned their existing vehicle, the Assault Amphibious Vehicle from going into water or taking part in regular combat operations unless in a crisis as they are no longer considered safe to operate after one sank last year killing its crew. They have been confined to dry land and an upgrade program has been cancelled.

    • BAE are only selling to Uncle Sam because of the US acquisitions they have made over the years. It is highly unlikely that US Congress would ever sanction the purchase of frontline military equipment direct from any British factories.

      • Think you need to read it again he makes no reference to Iveco engines in a US project being crap, exact opposite in fact, he is talking about UK projects like Ajax for an obvious example that we get from US companies.

        *And yes we know that’s not the full story but just pointing out the error in the interpretation.

          • Actually they where RR, the then Defence Secretary was MP for a consistency close to the RR plant , he ignored all the advice from BAe and selected the RR option .

          • The gas turbine marine engine was designed by RR but it had a inadequate intercooler fitted not capable of handling the needs of the type 45 in warmer waters.

          • Actually I suggest you go and read what the MoD said to the defence committee.
            The WR21 GT was built by RR , the GT and inter cooler design was an RR NGC collaborative venture
            Geoff Hoon turned down the LM2500 which is a highly reliable unit; instead, he opted for the RR offering.
            The decision was political

          • The whole thing was a joint venture but the individual components were made by each company ie RR gas turbine NGC intercooler

          • Taxpayers’ money was used to support taxpayers, BUT SOMEONE agreed that design and said it was fit for purpose and failed.
            Its why the Procurement won’t go risky anymore, no-risk option is now considered at the design with future development a priority

      • The warrior upgrade program was one, Ajax is another though most of these problems are of Spanish origin. issues tend to appear when its a US Group but uses European production,

    • The US subsidiary of BAE is entirely US, I’m surprised BAE rebranded its US operations rather than keep the United Defense name, ‘British’ probably hammers them when it comes to US politics.

    • BAE, is not a British Company anymore and was removed from the Dedicated supplier list by Procurement after the Harrier/MRA4/and associated Contracts in a pissing contest. has to be a partner NOW in a tender.

        • I think there are 2 separate companies. BAE in the uk and BAE in the USA. While they share nearly the same name they are separate in a number of ways. The massive expansion they undertook in the USA from the 2000’s has led them to where they are today.
          There are some interesting articles about all the acquisitions BAE made and what they had to do to break into the American market. Even wiki has a good description.
          The Swedish company was particularly good purchase.
          With regards to Ajax etc the MOD need to realise sometimes things just go wrong and you have to stop and reassess what to do.
          Would the Royal Marines like some of these vehicles? To supplement Viking? I’m not sure if they fit in with the Royal Marines current role. Perhaps 100 between the army and marines.

      • I suppose, like all the big US defence suppliers (Boeing, Lockheed Martin etc) BAE is now a multinational company. It just happens to have been founded in the UK, with HQ in London and listed on the London Stock Exchange.

  1. The more I look at the vehicle the more appealing it is. The are making a 30mm turret variant. As standard it can carry a remote weapons station for upto a 50cal or grenade launcher.
    The Italian one is air transportable in a C-130 or A400.
    It says it can keep up with an Abrams off-road and can swim.
    Can be up armoured. Has the uk missed a trick here. If boxer is the future could this fit into the plan aswell. At least for marines.

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