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30 Apr 2008  -  United States

$43.6 Million U.S. Army contract for BAE Systems

BAE Systems has been awarded a $43.6 million contract by the U.S. Army to manufacture 730 Long Term Armor Strategy (LTAS) cargo vehicles, as announced on April 15, 2008. This contract is part of the Army’s Long Term Armor Strategy initiative to equip all tactical vehicles with the ability to be armored when necessary. It provides the initial production and full scale ramp up of the Family of Medium Tactical Vehicles (FMTV) LTAS variant.

BAE Systems’ LTAS is system-designed for the FMTV comprised of a different cab and vehicle elements allowing for significant increases in weight. The “A-Kit” modifies the FMTV to allow the addition of armor including a new cab. The “B Kit” is the armor itself.

Initial production calls for 730 LTAS A-Kit configured vehicles. A follow-on modification includes an additional 103 A-Kit configured vehicles resulting in a total of 833 A-Kit vehicles. A follow-on order for B-Kits is expected later this month.

“The LTAS marks a significant advancement to the FMTV arguably making it the most effective, adaptable tactical military vehicle in the world today. We are proud to have worked so effectively with the Program Office to bring this joint development to the Armed Services,” said Chris Chambers, vice president of Medium/Heavy Vehicles for BAE Systems.

Over 39,000 FMTV trucks have been manufactured for military forces worldwide. More than 45,000 FMTV trucks and trailers are in service with the U.S. Army. The commonality of parts among the FMTV includes shared engines, transmissions, power trains, tires and cabs. This commonality significantly reduces the logistics burden and operating and support costs for the U.S. Army. FMTVs set new tactical vehicle standards for capability, reliability, mobility, protection and transportability.

Production of LTAS cargo vehicles will be performed in Sealy, Texas and Cincinnati, Ohio. Deliveries will commence in August 2008 and are expected to be completed by November 2008.

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 Medium/Heavy Vehicles business unit leverages a long history with wheeled vehicle products. It has established itself as a world-class designer, volume manufacturer and through-life supporter of high-quality, best value, military tactical trucks and wheeled vehicle systems with payload capacities from 2.5 to 18 tons. Today, BAE Systems is the exclusive manufacturer of FMTVs and the producer of the Caiman MRAP (Mine Resistant Ambush Protected Vehicle).

Additionally, BAE Systems employs more than 1,600 people in Cincinnati, Ohio and has almost 1 million square feet of manufacturing and office space there. The Cincinnati operations have played a vital role in both the Caiman and RG33 MRAP programs by providing armor systems for both vehicles, as well as the FMTV. Other products include up-armored vehicles, commercial armored vehicles, integrated armor kits and accessories for a full range of tactical wheeled vehicles, combat vehicles and construction equipment. Cincinnati operations also include a state-of-the art ballistic glass plant.

About BAE Systems
BAE Systems is the premier global defense 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 £15.7 billion (US$31.4 billion) in 2007.

Source : BAE Systems