BAE Systems was selected on Monday to deliver the Marine Corps’ next-generation Amphibious Combat Vehicle (ACV), beginning with a $198 million low rate initial production deal to build 30 vehicles.

Marine Corps officials announced the decision to select BAE’s SuperAV vehicle for ACV 1.1 over SAIC’s [SAIC] Terrex, with initial deliveries to start in fall 2019.

BAE's prototype for the Marine Corps' ACV 1.1
BAE System’s prototype for the Marine Corps’ ACV 1.1

A decision on full rate production is expected in the third quarter of FY 20. BAE Systems is expected to deliver 204 total ACV’s.

BAE first partnered with Italian vehicle manufacturer Iveco in 2011 to develop its SuperAV for the ACV 1.1 program. The Marine Corps then selected BAE and SAIC’s ACV offerings for engineering and development testing in November 2015.

Both companies completed operational testing for the vehicles in March.