Under the contract, GD will deliver a first batch of around 600 medium-weight armoured fighting vehicles to the front line, with the possibility of additional future purchases.
The programme will also include development of the Scout, the principal reconnaissance vehicle for UK forces, which will replace the Scimitar vehicle currently operating in Afghanistan.
The specialist vehicle fleet will provide The British Army with improved protection against a wide range of threats, greater firepower, longer-range sensors and sighting systems as well as a higher level of reliability.
Defence Secretary Bob Ainsworth said the specialist vehicle decision followed the announcement of ministry’s commitment to order an initial batch of 200 LPPV to be deployed to Afghanistan as quickly as possible.
Work on the specialist vehicle will be carried out in the UK.