The additional work is worth more than $20m and is expected to create up to 12 new direct jobs in Victoria.
AME Systems will be responsible for the production of electrical wiring harnesses for the AMV35 combat reconnaissance vehicle, should Bae’s Land 400 bid be successful.
BAE Systems Australia chief executive Glynn Phillips said: “We have worked with AME Systems for many years and we’re pleased to be able to continue this relationship with our LAND 400 offering.
“It has a highly skilled workforce ready to work with us to deliver a high-quality product for the Australian Army.
“Working with partners like AME will help us develop and maintain Australian Industry Capability on major projects like LAND 400, and to hit the ground running should we win the contract.”
LAND 400 is claimed to be the Australian Army’s largest ever vehicle replacement initiative and intends to replace the ageing Australian Light Armoured Vehicle (ASLAV) fleet.
AME Systems primarily designs and manufactures quality electrical wiring harnesses and assemblies.
The company employs more than 250 personnel.
AME Systems managing director Nick Carthew said: “This opportunity will provide long-term employment with up to a dozen additional direct jobs at AME.
“As the largest employer in the region, this opportunity is incredibly important for the people of Ararat and the surrounding area.”
The AMV35’s constrained Gross Vehicle Mass allows for easy deployment into operational areas and high manoeuvrability on the ground, BAE Systems stated.