BAE Systems Awarded Contract for 36 Amphibious Combat Vehicles

amphibious vehicle drives out of the water

Amphibious Combat Vehicle (ACV) – BAE Systems

BAE Systems has received a $183.8 million contract for Amphibious Combat Vehicles (ACVs) for the Marine Corps. The award is a fixed-price incentive modification to a previously awarded contract (M67854-16-0006) for ACVs.  The total cumulative value of the contract is $3.3 billion.

This modification provides for the exercise of options for the procurement of 36 full rate production ACVs and associated production and fielding and support costs. The contract represents the second lot of full-rate production vehicles. The first lot of 36 vehicles was awarded in December 2020. This month’s contract completes planned procurement of 72 vehicles in FY21. The original contract contains options for 80 vehicles per year over five years.

Work under the latest contract will be performed in York, Pennsylvania (60%); Aiken, South Carolina (15%); San Jose, California (15%); Sterling Heights, Michigan (5%); and Stafford, Virginia (5%).  Work is expected to be completed in April 2023.

Fiscal 2021 procurement (Marine Corps) funds in the amount of $183.8 million will be obligated at the time of award, none of which will expire at the end of the current fiscal year.  Marine Corps Systems Command, Quantico, Virginia, is the contracting activity (M67854-16-C-0006).

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About Shaun McDougall

Shaun McDougall is an analyst at Forecast International covering the U.S. and Canadian defense markets.

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