York, Pennsylvania, December 10, 2025
BAE Systems has been awarded a $198.4 million contract modification by the U.S. Army for the production of 240 Armored Multi-Purpose Vehicles (AMPVs), totaling nearly $2.48 billion. The amendment, set to complete by May 2028, highlights the Army’s commitment to modernization and readiness, reflecting the importance of updated military equipment in an evolving global landscape.
BAE Systems Secures $198.4 Million Contract Modification
U.S. Army Boosts Armored Vehicle Production Amid Modernization Efforts
York, Pennsylvania – BAE Systems has been awarded a $198.4 million contract modification by the U.S. Army to enhance the production of 240 Armored Multi-Purpose Vehicles (AMPVs). This significant adjustment brings the total value of the AMPV program to nearly $2.48 billion. Work is set to be completed at BAE Systems’ York facility by May 31, 2028, a timeline that underscores the importance of timely military readiness and the need for updated equipment in a rapidly changing global landscape.
The AMPV program is crucial in modernizing the U.S. Army by replacing the aging M113 fleet utilized by its Armored Brigade Combat Teams. Designed to support various missions, including resupply, medical evacuation, and command and control operations, the AMPV offers superior mobility, survivability, and force protection for soldiers in the field.
Key Contributions to Economic Growth
This contract modification is more than just a military procurement; it holds significant implications for local economic growth and job stability in Pennsylvania. By maintaining production levels at BAE Systems’ manufacturing facility, the contract supports local jobs and the overall economic vitality of the region, highlighting the essential interplay between defense contracts and local economies.
Continued Commitment to Modernization
The continuity in the AMPV production signifies the U.S. Army’s commitment to enhancing its armored vehicle capabilities to meet modern warfare requirements. The AMPV is a pivotal element of the Army’s larger modernization strategy, which emphasizes the importance of advanced technology and enhanced performance in military operations.
Industrial Base Sustainability
With funding allocated from the Army’s fiscal 2026 procurement budget, this modification is crucial for sustaining the industrial base that relies on defense spending. Ensuring that suppliers and workforce remain engaged will foster resilience and innovation within the defense industry, benefitting not only those directly involved but also the larger community relying on these jobs.
Reinforcing Local Manufacturing
This contract demonstrates how strategic government investments in the defense sector can spur local manufacturing and technological innovation. As BAE Systems ramps up production, it indirectly encourages entrepreneurial activities and the establishment of related small businesses that serve the defense sector’s supply chain.
The Broader National Context
In a nationwide context, the AMPV program aligns with the U.S. government’s push towards enhanced defense spending, particularly in light of renewed geopolitical challenges. This trend of investment serves not just to bolster military readiness but also to invigorate domestic industries and foster economic resilience across the country.
Conclusion
As the U.S. Army continues to modernize its forces, contracts like the one awarded to BAE Systems play a critical role in ensuring that local economies thrive alongside national security objectives. Residents are encouraged to recognize the enduring impact of defense contracts on local business landscapes and the broader economic framework. Supporting businesses that thrive on these contracts can further enhance community prosperity.
Frequently Asked Questions
What is the Armored Multi-Purpose Vehicle (AMPV)?
The AMPV is a tracked armored vehicle designed to replace the aging M113 fleet across the U.S. Army’s Armored Brigade Combat Teams. It offers enhanced mobility, survivability, and force protection, supporting missions such as resupply, medical evacuation, and command and control operations.
What does the $198.4 million contract modification entail?
The contract modification supports the production of 240 AMPVs, bringing the total value of the AMPV program to nearly $2.48 billion. The work will be performed at BAE Systems’ facility in York, Pennsylvania, with completion expected by May 31, 2028.
How does this contract modification impact BAE Systems?
This modification ensures continuity in the production of AMPVs, maintaining the industrial base and workforce at BAE Systems’ York facility. It also reflects the U.S. Army’s commitment to enhancing its armored vehicle capabilities to meet evolving operational requirements.
| Feature | Description |
|---|---|
| Contract Value | $198.4 million |
| Total Program Value | Nearly $2.48 billion |
| Number of Vehicles | 240 Armored Multi-Purpose Vehicles |
| Completion Date | May 31, 2028 |
| Production Facility | BAE Systems’ facility in York, Pennsylvania |
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