BAE Systems has received two contract modifications from the US Army for the low-rate initial production (LRIP) of the service’s armoured multi-purpose vehicle (AMPV).

The contract modifications, valued at $575m in total, mark the start of the AMPV LRIP.

The AMPV is a highly mobile, survivable, multipurpose vehicle developed to meet the US Army’s Armored Brigade Combat Teams’ (ABCT) force protection and all-terrain mobility requirements.

It is designed to replace the ABCT’s Vietnam-era M113 family of vehicles that have been in service with the US Army since 1960.

BAE Systems combat vehicles business AMPV programme director Bill Sheehy said: “Moving into this phase of the AMPV programme is exciting because it brings soldiers one step closer to deploying this critical capability for completing their missions and coming home safely.

“We have been preparing for this moment and are ready to take this programme to the next stage.”

BAE Systems was awarded funding to support production planning and to date has secured $873m for the LRIP.

In May 2014, BAE Systems submitted a mature, low-risk and cost-effective proposal for the AMPV programme.

“BAE Systems was awarded a contract worth up to $1.2bn in December 2014 for the engineering, manufacturing, and development (EMD) and LRIP of the AMPV.”

Following the submission, the company was awarded a contract worth up to $1.2bn in December 2014 for the engineering, manufacturing, and development (EMD) and LRIP of the AMPV.

Under the new contract, BAE Systems will develop 29 AMPVs under the EMD phase and produce up to 460 additional vehicles in multiple configurations such as command and control, general purpose, medical evacuation, medical treatment, and transport.

Within BAE Systems’ AMPV team, DRS Technologies will deliver power management, distribution and integration. Northrop Grumman is responsible for Mission Command Mission Equipment Package design and intergration.

Meanwhile, US helicopter operator Air Methods Corporation will develop medical evaluation and treatment subsystems, while Texas-based Red River Army Depot is responsible for vehicle maintenance and repair.

The company has already delivered prototype vehicles for test and evaluation.

Work under the programme will be carried at the company’s facilities located at Aiken in South Carolina, Minneapolis in Minnesota, San Jose in California, Sterling Heights in Michigan, and York in Pennsylvania.

–Additional reporting by Talal Husseini.