Arthur McMiler
BAE Systems’ business unit Land & Armaments has secured a firm-fixed-price contract modification valued about $188.5 million from the U.S. Navy for the production of 30 medium caliber cannons mission variants of the Marine Corps’ amphibious combat vehicles, or ACVs. The contract’s deliverables also include equipment fielding and support to the Marines, according to a Department of Defense announcement released Friday.
Three-Year Work Performance
Most of Land & Armaments’ contract work will be performed at York, Pennsylvania. Contract completion is expected in August 2028, with other tasks done in Aiken, South Carolina; San Jose, California; Sterling Heights, Michigan; and Stafford, Virginia. Marine Corps’ procurement funding for fiscal year 2025 for the contract’s full amount is being obligated with the contract award, with no expiry at the current fiscal year’s end.
The Marine Corps Systems Command in Quantico, Virginia, initiated the contracting activity for the cannon variant’s procurement, which is part a Navy contract valued approximately $3.9 billion if all options are exercised.
BAE Systems’ ACV Contracting History
In March 2024, BAE Systems’ Land & Armaments was awarded a potential $181.9 million contract modification to manufacture and deliver 34 ACV personnel variants and related fielding, test equipment and support services. Subsequently in April, an additional $25 million firm-fixed-price modification was awarded to the company for the Marines’ ACV procurement.
The BAE Systems unit received in November 2023 an earlier $211.5 million contract modification for the full-rate production of 40 ACV personnel variants. The company delivered the first ACV variants in January 2024.
In another contract modification in June 2019, BAE Systems received a $67 million, three-year Navy award to draft engineering drawings for ACVs, mission role variants and a medium-caliber cannon. The contract modification follows a $103.7M fixed-price-incentive contract for engineering, manufacturing and development of ACV systems awarded in November 2015.
