BAE Systems Secures $184 Million Contract for ACV Production Ramp-Up

The U.S. Department of Defense alongside BAE Systems proclaimed on Thursday a contract valued at approximately $184 million for the extensive production of the long-anticipated Amphibious Combat Vehicles.

According to the agreement, the Amphibious Combat Vehicle (ACV) program has reached its most pivotal milestone to this point, as the Marine Corps has opted to transition into full-rate production and has awarded a contract worth $184 million for 36 units.

The ACV is meticulously engineered to fully supplant the Corps’ outdated fleet of AAVs throughout the 2020s. Designed for expeditionary operations and modern versatility, the ACV seamlessly integrates with naval logistics and ship-to-shore connectors. Its capability to navigate oceans and waterways for transporting Marines and gear makes it exceptionally suited for diverse operational terrains, including Expeditionary Advanced Base Operations.

The full-rate production milestone arrives soon after the Marine Corps affirmed the ACV’s readiness to perform global missions under Initial Operational Capability (IOC) on November 13. This IOC confirmation is a significant turning point for the program and showcases the Marine Corps’ trust in the vehicle.

“As the ACV becomes operational, it will deliver cutting-edge solutions for executing maritime warfare missions and will be crucial in the Marine Corps’ intricate and demanding assignments,” stated John Swift, director of amphibious programs at BAE Systems. “For BAE Systems, entering full-rate production confirms years of commitment and collaboration with the Marines to equip warfighters with this capability, placing our competitors at a considerable disadvantage. We take pride in our involvement with the program.”

The ACV proves to be a highly mobile, resilient, and adaptable platform for executing a full range of ship-to-shore operations, augmenting combat effectiveness on the battlefield. In partnership with IVECO Defence Vehicles, the ACV signifies an optimal balance of aquatic and terrestrial mobility, durability, and potential for future advancements. Featuring force protection capabilities that are threefold compared to the Assault Amphibious Vehicle, the ACV is tailored so that Marines can fulfill their missions efficiently. It boasts significantly improved horsepower, equipped with a six-cylinder, 690 horsepower engine, enabling land velocities surpassing 55 mph. Its modular architecture also offers Marines the adaptability to tackle additional mission roles and embrace emerging technologies as they develop.

This initial phase of full-rate production is projected to increase to 72 vehicles by early 2021, with options for producing 80 vehicles annually across five years.

BAE Systems is currently operating under a $67 million contract modification awarded in June 2019 to design new variants for the ACV Family of Vehicles aimed at enhancing battlefield situational awareness and firepower. This agreement encompasses the design and development of the command variant (ACV-C) and the 30mm medium caliber cannon variant (ACV-30), both of which are in progress.

Production and support for the ACV are being carried out at BAE Systems facilities located in Stafford, Virginia; San Jose, California; Sterling Heights, Michigan; Aiken, South Carolina; and York, Pennsylvania.