BAE Systems Receives Contract for Family of Medium Tactical Vehicles

BAE Systems,

SEALY, Texas: The U.S. Department of Defense has awarded BAE Systems a contract for the supply of up to 10,000 Family of Medium Tactical Vehicles (FMTV), worth up to US$2.2 billion, with US$1.65 billion of funding already agreed. The new contract includes a one year option for the procurement of 10,000 additional vehicles.

“BAE Systems will continue providing the most advanced tactical vehicles to our soldiers and marines,” said Denny Dellinger, president of Mobility and Protection Systems at BAE Systems. “The capacity expansions over the last two years allow BAE Systems to properly team with U.S. Army Tank-automotive and Armaments Command (TACOM), and Defense Contract Management Agency to meet the pressing truck and trailer needs of the US Army.”

FMTV trucks are Long Term Armor Strategy (LTAS) configured cargo trucks, wreckers, expansible vans, shop vans, tractors, load handling systems, High Mobility Artillery Rocket System support vehicles and Low Velocity Air Drop configured trucks. BAE Systems’ LTAS is the newest version of FMTV. It is designed to accept an adaptable armor system offering high levels of protection when required. Additional elements of the contract include program support, engineering, integrated logistics support, configuration management and field service support.

More than 48,000 FMTV trucks and trailers are in service with the U.S. Army. The commonality of parts among FMTVs 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 have set new tactical vehicle standards for capability, reliability, mobility, protection and transportability.

“Today’s $1.65 billion contract announcement by the Army is great news for BAE Systems’ 2,500 Texas-based employees, the city of Sealy, the State of Texas, and most importantly to our soldiers in theatre,” said Senator Kay Bailey Hutchison (Republican – Texas). “BAE Systems delivers outstanding tactical vehicles for our soldiers on time and on schedule and their product dependability is vital to the success of our military personnel as they carry out their mission at home and abroad. As always, I applaud the hard workers in Sealy and their work in support of our troops.”

Production of the LTAS cargo vehicles will be performed at BAE Systems’ facility in Sealy, Texas and Cincinnati, Ohio. Deliveries of the base contract are expected to be complete by February 2010 and deliveries of the option, if exercised, will be complete by November 2010.

“This contract is a great testament to our 2,500 strong, dedicated and skilled Texas-based workforce and our Government colleagues with whom we jointly work for the benefit of our Armed Services,” said Chris Chambers, vice president of Medium/Heavy Vehicles for BAE Systems. “It will utilize our expanded production capacity in Sealy, Texas along with our Cincinnati, Ohio vehicle armoring operations to uniquely position us to respond to the increasingly complex needs of our customer.”

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 location has 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 three Mine Resistant Ambush Protected (MRAP) variants, the Caiman, the RG33 and the RG31. The Caiman is manufactured in Sealy.

In Cincinnati, Ohio, BAE Systems employs more than 1,600 people and has almost one million square feet of manufacturing and office space. The Cincinnati operations has 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. The Cincinnati operations also include a state-of-the art ballistic glass plant.

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.