BAE Systems has won a potential $688 million contract to start production work on self-propelled howitzers for the U.S. Army.
Low rate initial production for the base period is valued at $195 million and covers 19 Palidin howitzers with 18 carrier ammunition tracked vehicles, BAE said Thursday.
The Army holds options to purchase 66.5 total vehicle sets, spares, kits and manuals.
“The PIM team, the program office, BAE Systems and our suppliers have been working cooperatively throughout the engineering, manufacturing and development phase of the program, ” said Mark Signorelli, vice president and general manager of combat vehicles at BAE.
Work under the Paladin Integrated Management project includes updates to the howitzer’s space, weight and power-cooling technologies.
BAE will also replace the chassis, engine, transmission, suspension and steering system.
Vehicles will be manufactured in Elgin, Okla., and York, Penn. with the first howitzers are scheduled to be delivered in mid-2015.