BAE Systems has received a $600 million contract to maintain the Armored Multi-Purpose Vehicle and the M113 armored personnel carrier over the next five years, the Army announced July 7.
"This sustainment contract allows for adding new capabilities and technologies on AMPVs throughout their time in service," a BAE press release stated. "The system technical support contract establishes BAE Systems as the sole source provider for sustainment system and technical support, as well as post-production sustainment and support for the AMPV program."
The Army plans to replace its Vietnam-era M113s with the AMPV, an armored personnel carrier that comes in five variants. But the program has faced production delays over the past two years, and the decision on full-rate production has been pushed from fiscal year 2022 to FY-23.
The service only requested $105 million for AMPV production in its FY-22 budget request, while an earlier budget request predicted the program would need $682 million that year.
Production delays led to the reduced funding request, an Army spokeswoman wrote last month to Inside Defense.
"Production funding was reduced in FY-21 and FY-22 due to production start-up issues and COVID-19 impacts," Ashley John, a spokeswoman for the Program Executive Office for Ground Combat Systems, wrote in a June 2 email.