An amphibious combat vehicle (ACV). Credit: BAE Systems.

A BAE Systems team has won the US Marine Corps’ (USMC) competition for the next-generation of amphibious combat vehicles (ACVs).

The BAE team, which includes Iveco Defence Vehicles, has received a $198m contract to deliver an initial 30 units of the ACV.

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In addition, the deal includes options for the supply of a total of 204 vehicles, which would increase the total value of the deal to $1.2bn.

"We are proud to continue our partnership with the Marine Corps by providing a best-in-class vehicle to support its mission through mobility, survivability and lethality."

The vehicles are expected to be used to transfer USMC personnel from ship to shore in order to engage in land combat operations.

BAE Systems Combat Vehicles Amphibious and International vice-president and general manager Dean Medland said: “We are well positioned and ready to build the future of amphibious fighting vehicles for the Marine Corps, having already produced 16 prototypes.

“Through this award, we are proud to continue our partnership with the Marine Corps by providing a best-in-class vehicle to support its mission through mobility, survivability and lethality.”

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In addition to providing enhanced mobility in all terrains, the amphibious vehicles offer blast mitigation protection for all three crew members and 13 embarked marines, along with other improvements over the currently fielded systems.

Work on the project is set to be carried out at the company’s facilities in Aiken, South Carolina; Sterling Heights, Michigan; Minneapolis; Stafford; San Jose, California, and York, Pennsylvania.

The new ACV is an advanced, eight-wheel drive, open ocean-capable vehicle fitted with a new six-cylinder, 700HP engine, which provides a significant power increase over USMC’s current assault amphibious vehicles (AAVs).

BAE Systems has supported the USMC’s rigorous developmental testing and operational assessment of the vehicles over the last 15 months.

The evaluations demonstrated the ACV’s effective performance in water and land operations, payload, and survivability.