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© albert lozano dreamstime.com Electronics Production | December 30, 2014

BAE Systems gets U.S. Army manufacturing deal

BAE Systems was awarded a contract worth up to $1.2 billion from the U.S. Army for the Engineering, Manufacturing, and Development (EMD) and Low-Rate Initial Production (LRIP) of the Armored Multi-Purpose Vehicle (AMPV).

“This award represents a significant milestone for the U.S. Army and BAE Systems,” said Mark Signorelli, vice president and general manager of Combat Vehicles at BAE Systems. “The AMPV will provide a substantial upgrade over the Army’s current personnel carrier fleet, increasing the service’s survivability, force protection, and mobility while providing for future growth potential. It also confirms BAE Systems’ role as a leading provider of combat vehicles.” The initial award is for a 52-month base term, valued at approximately $383 million, during which BAE Systems will produce 29 vehicles across each of the variants. The award also provides an option to begin the LRIP phase immediately following the current EMD phase, at which time the company would produce an additional 289 vehicles for a total contract value of $1.2 billion. The BAE Systems AMPV team includes DRS Technologies, Northrop Grumman Corporation, Air Methods Corporation, and Red River Army Depot. Work on the contract is expected to begin immediately and will take place primarily at the company’s York, Pennsylvania, and Sterling Heights, Michigan, facilities.
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