Army solicits proposal from BAE for more AMPVs in three add-on production years

The Army wants BAE Systems to add 43 more Armored Multi-Purpose Vehicles per option year to its existing contract with the vendor, according to a Jan. 30 amendment to a previous request for proposals.

The RFP, published a year and a day before the amendment, Jan. 29, 2024, modified its full-rate production contract with BAE by adding “three additional option ordering years.” It originally asked for a maximum number of 197 vehicles per option year for a total of 591 AMPVs, which are designed to replace the M113. 

The service laid out its amendment in a letter published yesterday asking “for up to 240 vehicles per option year for a total of 720 AMPVs and associated kits and support” in those three additional option ordering years.

That would make for a potential total increase of 129 AMPVs for all three years. The minimum order per year remains unchanged, at 60 vehicles.

This comes as the Army has begun to chip away at the overall rise in AMPV costs caused by labor and material cost spikes from COVID-19 pandemic shutdowns and a decline in assumed production rates of the vehicle.

As those production rates have risen during full-rate production, in part because of the Ukraine supplemental, costs have started to go down, Ashley John, Army spokesperson for Ground Combat Systems, told Inside Defense earlier this month.

The Army asks that BAE submit a proposal and a pricing matrix based on the new request. It asks for the submission “as soon as possible,” but not later than April 30.

From there, the service will review the cost proposal and negotiate with the vendor, the letter says.