BAE gets $754M contract for Armored Multi-Purpose Vehicle program

STERLING HEIGHTS–BAE Systems (LON: BA) received a $754 million contract award to continue producing the Armored Multi-Purpose Vehicle (AMPV) family of vehicles for the U.S. Army. This contract begins the second phase of full-rate production of AMPVs between March 2026 and February 2027.

The multi-mission ready AMPV FoV replaces vehicles from the Army’s Vietnam War-era M113 family, modernizing the force and providing critical survivability, mobility, and interoperability upgrades to the Armored Brigade Combat Team (ABCT).

This most recent milestone follows the program’s full-rate production contract award in August 2023.

“It’s crucial that we continue to replace the M113s, and that we do it at a pace that ensures Soldiers are unmatched on the modern battlefield. We are fully committed to continue our swift work with the Army to produce high-quality AMPVs at an increased and sustained rate for Soldiers,” said Bill Sheehy, BAE Systems AMPV program director. “This next phase for AMPV furthers our joint efforts to equip the ABCT with a combat platform that helps them successfully achieve missions they’ll encounter today and decades from now, in addition to having a highly capable vehicle that can maneuver with the fleet in the toughest terrains out there.”

Currently produced in five variants including the General Purpose, Mortar Carrier, Medical Evacuation, Medical Treatment and Mission Command, the AMPV operates in various roles for the warfighter, with hulls that serve as a foundation to upgrade to future mission roles.

BAE Systems remains committed to the future of the AMPV platform, ensuring that Soldiers are unmatched on the modern battlefield. Investments are underway to create a more modular chassis that will allow for quick integration of next-generation technologies and capabilities to support potential future customer needs.

The Army first awarded BAE Systems the AMPV engineering and manufacturing development contract in 2014 and signed a low-rate initial production contract in 2018. This most recent milestone follows the program’s full-rate production contract award in August 2023.

BAE Systems announced new investments by the company and the U.S. Army to expand the AMPV production line in York, Pennsylvania last year. Investing in AMPV production expansion ensures that BAE Systems has the capacity and technology necessary to deliver capability to the U.S. government at a faster rate while strengthening the combat vehicle industrial base. Most recently, the AMPV line installed an additional robotic weld capability which further increases quality throughput during the manufacturing process and makes room to expand production to meet the growing business demand.

Besides Sterling Heights, work on the AMPV program takes place across BAE Systems’ industrial network, including Aiken, S.C., Anniston, Ala., Phoenix, and York, Pa.

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