BAE Systems Won $818 Million Army Vehicle Contract

The company will produce Armored Multi-Purpose Vehicles at its facility in York, Pennsylvania.

Updated on Sept. 22, 2026 in Military Jobs

Interior of a large-scale industrial manufacturing facility with steel assembly frames and robotic welding rigs under bright fluorescent lights. — The U.S. Army has awarded BAE Systems an $818 million contract to manufacture Armored Multi-Purpose Vehicles at its York, Pennsylvania facility. AI Illustration. Upload story photo >

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The U.S. Army has awarded BAE Systems an $818 million contract to manufacture Armored Multi-Purpose Vehicles (AMPVs). This agreement supports the ongoing replacement of aging M113 armored personnel carriers with modern vehicle variants.

Why it matters

The contract is essential for maintaining the Army's modernization efforts, which began in 2016 to upgrade its aging fleet. By utilizing components from the M2 Bradley, the military aims to improve operational capabilities across the five main vehicle variants.

The new contract is valued at $818 million, contributing to a total program order value that has reached nearly £2.46 billion. The project is supported by appropriations spanning the 2025 and 2026 U.S. fiscal years.

The players

BAE Systems

This global defense, aerospace, and security company is the lead contractor responsible for manufacturing the U.S. Army's vehicle fleet.

U.S. Army

The branch of the United States Armed Forces responsible for land-based military operations and the acquisition of combat vehicle platforms.

Army Contracting Command

This organization located at Detroit Arsenal manages the procurement process and ensures that military equipment meets defense standards.

The details

Production will take place at the BAE Systems facility in York, Pennsylvania, where staff will build vehicles that incorporate design components from the M2 Bradley infantry fighting vehicle. The procurement process is managed by the Army Contracting Command at Detroit Arsenal.

The U.S. Army selected the AMPV platform in 2014.
Replacement of M113 vehicles with AMPVs began in 2016.
Procurement is funded through 2025 and 2026 fiscal year appropriations.
Contract deliveries are scheduled for completion by May 31, 2030.

Market Landscape

This order bolsters the industrial footprint in York by anchoring long-term production requirements for the Army's vehicle modernization initiative. It strengthens the position of the manufacturer against other defense contractors vying for long-term military hardware supply chain dominance.

The extended production timeline through 2030 indicates a stable industrial workload for the local facility in York. Residents may see continued employment opportunities and sustained economic activity tied to the ongoing vehicle manufacturing operations.

The takeaway

The continued investment in the AMPV platform highlights the military's long-term commitment to phasing out legacy personnel carriers. This transition ensures that frontline units receive modernized equipment designed for evolving battlefield roles.