BAE Systems Books $181M Navy Contract Modification for ACV

BAE Systems Land & Armaments has secured a $181 million contract modification from the U.S. Navy to procure amphibious combat vehicles, or ACVs.

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Amphibious Combat Vehicles Contract Scope

The Department of Defense said Monday the firm-fixed-price modification to an existing contract covers the delivery of 31 full-rate production ACV medium caliber cannon mission role variants. The new deal includes associated production, fielding and support costs and spares. The contract value will increase to $3.85 billion if all options are exercised.

The Sterling Heights, Michigan-based company will perform 60 percent of the work in York, Pennsylvania. The remaining work will be conducted in Aiken, South Carolina, San Jose, California, Sterling Heights, Michigan, and Stafford, Virginia. The project is expected to run through September 2027.

The Marine Corps Systems Command in Quantico, Virginia, will allocate $181 million from the Marine Corps’ fiscal 2025 procurement funds at the time of award. This allocation will not expire at the end of fiscal year 2025.

Previous Navy-BAE Systems ACV Contracts

In March, the company’s Land & Armaments business unit also secured a three-year, $188 million contract for 30 medium-caliber cannon mission ACVs. This contract modification is expected to be completed in August 2028.

BAE Systems was also awarded a potential $181.9 million contract in March 2024 for 34 ACV personnel variants and related fielding, test equipment and support.

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