The AMPV program is designed to deliver a replacement for the US Army’s ageing fleet of land vehicles such as the M113 APC.

The contract is expected to enable BAE Systems to establish itself as the sole “sustainment system and technical support” provider for the AMPV.

The US Army is expected source five different variants of the AMPV, including specialised medical, mission command, general purpose, mortar carrier and MEDEVAC vehicles.

Bill Sheehy, AMPV program director at BAE Systems, outlined how the program will support the warfighting capability of the US Army.

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“The AMPV family of vehicles will bring unmatched capability to the battlefield and has demonstrated outstanding survivability and force protection as well as flexibility and growth for the future,” he said.

“This contract award will not only support production, but it will also allow for future upgrades through the development and integration of new capability sets onto existing variants.”

BAE Systems made headlines in June for winning the US Navy contract to maintain the San Antonio Class amphibious transport dock, the USS San Diego.

David Thomas jnr, vice president and general manager of BAE Systems San Diego Ship Repair, outlined that the contract would extend the usable life of the vessel.

“The upcoming USS San Diego project is a major event in the service life of the ship, expanding its capability to execute a wide range of naval missions for many years to come,” Thomas said.

“Our team of employees, subcontractors and Navy personnel look forward to ushering USS San Diego into its next phase of fleet readiness.

“We also recognise the unique and special opportunity to work aboard a ship named for our hometown.”

[Related: BAE Systems wins contract to modernise USS San Diego]