BAE wins £1bn deal with the US Army

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BAE Systems has won a contract worth up to $1.2bn (£1bn) to build a new type of armoured vehicle for the US Army, the company and Army officials have revealed.

The British-based defence contractor said in a statement the programme aims to engineer and produce a limited initial number of the vehicles, called the Armoured Multi-Purpose Vehicle (AMPV), to replace the Vietnam War-era M113.

The initial 52-month term of the contract, worth about $383m, calls for 29 vehicles to be produced among five variants, with an option to follow with 289 more, for a total contract value of $1.2bn, BAE said in a statement.

“The AMPV capitalises on proven Bradley and M109A7 designs, meeting the Army’s force protection and all-terrain mobility requirements while enabling the AMPV to manoeuvre with the rest of the Armored Brigade Combat Team (ABCT),” the statement said.

Work is expected to start immediately, mainly at the company’s facilities in York, Pennsylvania, and Sterling Heights, Michigan, it said.

The programme was aimed at ultimately replacing 2,897 M113 vehicles, at the brigade and below level, the US Army said in a statement announcing the contract award. It said replacements for another 1,922 M113s supporting Echelons Above Brigade may have different requirements, which had yet to be decided.