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 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. He also works for the NHS. George is on Twitter at @geoallison
Subscribe
Notify of
guest
35 Comments
oldest
newest
Inline Feedbacks
View all comments
Chris
Chris
3 months ago

BAE sure knows how to sell to Uncle Sam.

Watcherzero
Watcherzero
3 months ago
Reply to  Chris

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.

Last edited 3 months ago by Watcherzero
AlexS
AlexS
3 months ago
Reply to  Chris

I wonder if the Iveco engines are build in US. Maybe it is possible since Fiat bought Chrysler and now are same group.

BB85
BB85
3 months ago
Reply to  AlexS

Pretty sure the entire vehicle will be US made under license. Certainly every major component anyway.

Johan
Johan
3 months ago
Reply to  AlexS

Great in reverse Gears as they have 14 and only one forward. LOL

MJAB
MJAB
3 months ago
Reply to  AlexS

CNH Industrial was demerged from Fiat Group about 2012. Engines are manufactured by FTP Industrial and should be a variant of Cursor 16 (or 13).

Andrew Peter Smith
Andrew Peter Smith
3 months ago
Reply to  Chris

That part of BAE is American

MikeB1947
MikeB1947
3 months ago
Reply to  Chris

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.

DaveC
DaveC
3 months ago

So the US buys quality from a UK company and UK buys crap from a US company ?

AlexS
AlexS
3 months ago
Reply to  DaveC

Crap? Iveco engines are well regarded.

In this case BAE changed the hull to accomplish US Marines requirements, but the vehicle basis is Iveco SuperAV which was a Italian Armed Forces project.

https://en.wikipedia.org/wiki/CNH_Industrial

Spyinthesky
Spyinthesky
3 months ago
Reply to  AlexS

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.

Last edited 3 months ago by Spyinthesky
AlexS
AlexS
3 months ago
Reply to  Spyinthesky

Yeah, i was mistaken.

DanielMorgan
DanielMorgan
3 months ago
Reply to  DaveC

Please list all of the products you consider “crap” that the UK buys from US companies.

Gary j Purser
Gary j Purser
3 months ago
Reply to  DanielMorgan

Ajax

eclipse
eclipse
3 months ago
Reply to  DanielMorgan

I think he’s going for Ajax…

Dc647a
Dc647a
3 months ago
Reply to  eclipse

Thank you I should have made it more clear.

Spyinthesky
Spyinthesky
3 months ago
Reply to  Dc647a

The T45 Intercoolers.

Tom
Tom
3 months ago
Reply to  Spyinthesky

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 .

Dc647a
Dc647a
3 months ago
Reply to  Tom

Actually the intercooler were made by Northrop Grumman Corporation a US company.

Dc647a
Dc647a
3 months ago
Reply to  Dc647a

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.

Tom
Tom
3 months ago
Reply to  Dc647a

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

Dc647a
Dc647a
3 months ago
Reply to  Tom

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

Johan
Johan
3 months ago
Reply to  Dc647a

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

Johan
Johan
3 months ago
Reply to  DanielMorgan

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,

BB85
BB85
3 months ago
Reply to  DaveC

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.

Johan
Johan
3 months ago
Reply to  DaveC

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.

simon
simon
3 months ago
Reply to  Johan

BAE Systems is the MOD biggest supplier (13.5% of MOD expenditure) and is a British company.

Monkey spanker
Monkey spanker
3 months ago
Reply to  simon

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… Read more »

MikeB1947
MikeB1947
3 months ago
Reply to  Johan

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.

Graham Moore
Graham Moore
3 months ago
Reply to  DaveC

That’s a memorable statement. BAE does make some pretty good kit, including CV90 and 155mm M777 towed howitzer.

MikeB1947
MikeB1947
3 months ago
Reply to  Graham Moore

The CV-90 was designed in Sweden by Hagglunds and Bofors in the mid-1990s. Both companies were acquired by BAE in 2005.

Graham Moore
Graham Moore
3 months ago
Reply to  MikeB1947

BAE has acquired many companies over the years including all 5 British AFV manufacturers.

Frank Simpson
Frank Simpson
3 months ago

Basically a modern Alvis Stalwart.

Frank Delacoe
Frank Delacoe
3 months ago

The headline should read ” US to buy up all the old tech British Army HMLC Stalwart technology”
Mugs

Monkey spanker
Monkey spanker
3 months ago

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.