UK BAE Systems wins $1.2 billion contract for wheeled amphibious combat vehicles

The U.S. Marine Corps has awarded London-based defence, security and aerospace company BAE Systems Plc a contract for wheeled amphibious combat vehicles (ACV) that transport Marines from ship to shore under hostile conditions.

The Department of Defense estimated that procurement and maintenance of all 208 vehicles in the program will be about $6.2 billion over their lifetime.

The acquisition cost for the 208 vehicles is expected to total about $1.2 billion
The new vehicles will replace the ageing fleet of expensive-to-maintain flat-bottomed amphibious assault vehicles in service since 1972. BAE has confirmed the $198 million deal and that the company has already produced 16 prototypes.

In 2015, Marines awarded BAE and U.S.-based Science Applications International Corporation, a technology and engineering company, development and testing contracts for the wheeled amphibious combat project.