The Marine’s Program Executive Officer–Land Systems (PEO-LS) selected SAIC [SAIC] over BAE Systems as it exercised $53 million in options under a prime contract award for initial upgrades to 10 Assault Amphibious Vehicle (AAV) prototypes.

BAE, which introduced the AAV in 1984, said in a statement, “We are disappointed by this decision, and look forward to understanding the Marine Corps’ rationale through participation in the debrief process.”

The single-award, firm fixed-price contract builds upon SAIC’s previously announced $16 million initial engineering work contract. This $53 million contract increase brings the contract value to $69 million.  The total contract value, if all options are exercised, is approximately $194 million over five years.

Assault Amphibious Vehicle Photo: BAE Systems
Assault Amphibious Vehicle
Photo: BAE Systems

If additional options are exercised, SAIC’s work would lead to developmental testing and low rate initial production  (LRIP) delivery of 52 vehicles for operational test and evaluation and to Marine units. 

Under the contract, SAIC will upgrade AAVs to provide improved protection while gaining back land and water mobility that improves the AAV’s ability to fight.

The upgrades include armor, engine rebuild to improve horsepower and torque, replacement of the transmission, upgrade of suspension components, installation of new water jets, installation of blast-resistant seats, and upgrade of vehicle control, instrumentation and driver interface systems.

“This significant win demonstrates SAIC’s ingenuity to meet the demands of our customers and to serve the mission interests of the USMC,” said Tom Watson, senior vice president and general manager of the Navy and Marine Corps Customer Group for SAIC. “SAIC is honored to have the opportunity to support the USMC on this highly important program to ensure the safety and amphibious mission success of our nation’s Marines.