The US Army has agreed to pay for the production of 240 more Armoured Multipurpose Vehicles (AMPVs) to avoid any disruption to the continuous ordering cycle.
Originally, the service was contracted to purchase 2,907 AMPVs back in January 2019 to replace its legacy fleet of M113s, of which there are currently 2,897 in service after more than 60 years.
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This revision will “prevent a break in production”, thus averting the sheer cost of restarting BAE Systems’ production line in York, Pennsylvania and risking disruption to an already shaky global supply chain.
The contract authority did not state what type of AMPV will be procured specifically, however there are five variants: the General Purpose, Mortar Carrier, Mission Command, Medical Treatment and Medical Evacuation vehicles.
Reduced production?
The government anticipates the work to be completed by the end of May 2028, suggesting the “break” period would have lasted more than two years.
This data point also indicates another reduction in the rate of production. According to information from the Congressional Research Service, the rate has already fallen from 190 to 131 units per year as of FY2024 and this was expected to remain the same until at least 2027.
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By GlobalDataHowever, the rate of production according to this interim tranche is scheduled to produce fewer vehicles in the coming two years than the current rate of production suggests.
Nevertheless, the move to procure 240 more AMPVs will cost the government $198.4m, which will stretch the cumulative value of the AMPV framework to more than $2.4bn.
Acquisition reform
In November 2025, Defense Secretary Pete Hegseth announced a new strategy for defence acquistion as part of the government’s wider social and fiscal reforms. The document provided new ways of identifying new equipment, the act of buying, and how the US will work with allies in defence procurement.
Among these new policies, besides increasing capital and ensuring a return on taxpayer funds, the administration is committed to invest more money in its defence programmes than it has before.
“This new balance of risk sharing with industry through stable demand signals and the correct incentives will enable industry to meet increased expectations of reinvestment of earnings and the deployment of private capital to drive growth.”
The AMPV fleet increase aligns with this new strategic policy of providing a clear demand signal to industry but also to put US defense on what Hegseth said was to be a “war footing”.
Jim McGinn, senior fellow at the Center for Strategic and International Studies in Washington, told Army Technology that “if the government customer wants different behaviours, they have to create different incentives, and that’s either buying more stuff, or buying stuff differently, or giving other kinds of ways that companies can invest.”
