BAE systems gets $1.65 bn contract for tactical vehicles

June 5th, 2008 - 10:28 pm ICT by IANS  

Sealy (Texas), June 5 (IANS) The US Department of Defense has awarded BAE Systems a contract for the supply of up to 10,000 family of medium tactical vehicles (FMTVs), worth up to $2.2 billion, with $1.65 billion of funding already agreed to, the company said Thursday. The contract includes a one-year option for the procurement of 10,000 additional vehicles.

“BAE Systems will continue providing the most advanced tactical vehicles to our soldiers and marines,” Denny Dellinger, president of the company’s Mobility and Protection Systems, said in a statement.

“The capacity expansions over the last two years allow BAE Systems to properly team with the US Army Tank-automotive and Armaments Command (TACOM) and the Defence Contract Management Agency to meet the pressing truck and trailer needs of the US Army,” Dellinger added.

FMTV trucks are long-term armour strategy (LTAS) configured cargo trucks, wreckers, expandable vans and tractors as also high mobility artillery system support vehicles and low velocity airdrop configured trucks.

“BAE Systems’ LTAS is the newest version of FMTV. It is designed to accept an adaptable armour system offering high levels of protection when required,” the statement said.

“Additional elements of the contract include programme support, engineering, integrated logistics support, configuration management and field service support,” it added.

More than 48,000 FMTV trucks and trailers are in service with the US Army. The commonality of parts among FMTVs includes shared engines, transmissions, power trains, tires and cabs.

“This commonality significantly reduces the logistics burden, and operating and support costs for the US Army. FMTVs have set new tactical vehicle standards for capability, reliability, mobility, protection and transportability,” the statement added.

“Today’s $1.65 billion contract announcement by the army is great news for BAE Systems’ 2,500 Texas-based employees, the city of Sealy, the state of Texas, and most importantly to our soldiers in the theatre,” Senator Kay Bailey Hutchison (Republican-Texas) said.

“BAE Systems delivers outstanding tactical vehicles for our soldiers on time and on schedule and their product dependability is vital to the success of our military personnel as they carry out their mission at home and abroad. As always, I applaud the hard workers in Sealy and their work in support of our troops.”

Production of the LTAS cargo vehicles will be performed at BAE Systems’ facility in Sealy and in Cincinnati, Ohio. Deliveries of the base contract are expected to be complete by February 2010 and deliveries of the option, if exercised, will be complete by November 2010.

BAE Systems employs more than 2,400 people in Sealy, Texas, and has 900,000 square feet of manufacturing and office space on approximately 200 acres. The location has a long history with wheeled vehicle products with payload capacities from 2.5 to 18 tonnes.

In Cincinnati, BAE Systems employs more than 1,600 people and has almost one million square feet of manufacturing and office space.

BAE Systems is a premier global defence and aerospace company delivering a full range of products and services for air, land and naval forces, as well as advanced electronics, information technology solutions and customer support services.

With 97,500 employees worldwide, BAE Systems’ sales exceeded $31.4 billion in 2007.

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