BAE awarded contract modification for 30 more ACVs

The Marine Corps will exercise a contract option to procure an additional 30 full-rate production Amphibious Combat Vehicles from manufacturer BAE Systems.

Delivery of the new ACVs is expected in December 2024 according to the Wednesday contract announcement.

BAE will receive an additional $153.7 million for the modification, bringing the cumulative contract value to just over $2 billion.

The Marine Corps has been closely monitoring schedule risks as BAE ramps up vehicle production. In September, a service spokeswoman told Inside Defense the contractor is on pace to increase production capacity from five to nine vehicles per month by fiscal year 2025.

The vehicles have struggled with technical issues and training mishaps during water operations.

In October, the service suspended all water operations involving surf-zone transit after an ACV capsized during routine training. The vehicles continue to operate on land and in the open ocean.

The ACV replaces the Amphibious Assault Vehicle and outperformed the legacy system during initial operational testing and evaluation in 2020.

The Navy requested $536.6 million to procure 74 ACVs in its FY-23 budget, after acquiring 83 in FY-22.