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BAE Systems (OTC: BAESY) has received a $184 million contract option from the U.S. Marine Corps for more Amphibious Combat Vehicles (ACV) under full-rate production. The order demonstrates the Marine Corps’ confidence in a program that is on track to deliver this critical capability to the Marines. This contract award will cover production, fielding, and support costs for the ACV personnel carrier (ACV-P) variant. BAE Systems was awarded the first full-rate production contract option in December for the first 36 vehicles. This option on that contract increases the total number of vehicles under full-rate production to 72, for a total value of $366 million.

The ACV is a highly mobile, survivable, and adaptable platform for conducting rapid ship-to-shore operations and brings enhanced combat power to the battlefield. BAE Systems is under contract to deliver two variants to the Marine Corps under the ACV Family of Vehicles program: the ACV-P and the ACV command variant (ACV-C). A 30mm cannon (ACV-30) is currently under contract for design and development and a recovery variant (ACV-R) is also planned.

The Marine Corps selected BAE Systems along with teammate Iveco Defence Vehicles for the ACV program in 2018 to replace its legacy fleet of Assault Amphibious Vehicles (AAV), also built by BAE Systems. BAE Systems was also recently awarded an indefinite delivery indefinite quantity (IDIQ) contract worth up to $77 million for the ACV program that includes the provision of spare and replacement parts, testing equipment, and other services.

ACV production and support is taking place at BAE Systems locations in Stafford, Virginia; San Jose, California; Sterling Heights, Michigan; Aiken, South Carolina; and York, Pennsylvania.

The U.S. Army has awarded BAE Systems a $45 million contract for the Extended Range Cannon Artillery (ERCA) Increment 1 prototype with the purpose of increasing the range and rate of fire on current and future M109A7 self-propelled howitzers.

The development of ERCA is in collaboration with the Army’s Combat Capabilities Development Command (CCDC) Armaments Center.

This prototype phase will address capability gaps in the Army’s indirect fire systems and improve the rate and range of fire with the development of power distribution software and hardware integration solutions. ERCA will be integrated onto the M109A7 and will require the M109A7’s current 39-caliber turret to be replaced with a 58-caliber, 30-foot long gun barrel with the objective of creating firepower double the current range.

“ERCA is a significant technological step forward for the Army’s artillery portfolio,” said Scott Davis, vice president or programs, BAE Systems’ Combat Vehicles business. “We were selected based on our years of experience in the development of self-propelled howitzer systems. Long-range precision fire is a top priority for the Army, and we are pleased to be a partner in efforts to equip soldiers with the latest technology.”

The development program aims to provide the warfighter with extended range while maintaining the weight found in current systems to minimize performance impacts on the chassis. Under separate contracts, BAE Systems is also developing precision guidance kits with anti-jamming capabilities (PGK-AJ) that can operate in the challenging ERCA firing environment. PGK-AJ is compatible with existing and new long-range rounds for multiple firing platforms, including the M109 self-propelled howitzer.

BAE Systems is currently producing the M109A7 configuration for the Army in the low-rate initial production phase.

Development work on ERCA Self Propelled Howitzer will take place at the Army’s Picatinny Arsenal and BAE Systems’ facilities in York, Pennsylvania; Sterling Heights, Michigan and Minneapolis, Minnesota.

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U.S. Marine Corps Awards BAE Systems $184 Million for Additional ACV’s

BAE Wins $45 Million Extended Range Cannon Contract

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