BAE Systems close to Aussie army contract

The Australian government has chosen BAE Systems as preferred bidder for one of the largest projects in the Australian Army’s recent history.



The Australian government says it will negotiate the final contractual terms with BAE Systems to meet the medium and heavy truck segment of Land 121 Project Overlander. The Land 121 Project, which commences in 2009, will replace over 3000 Australian Defence Force tactical trucks.



The six-year contract is expected to have a total value of between £436m and £653m. In addition to equipment, the contract includes payload modules, technical services and spare parts for the life of the equipment.



Denny Dellinger, President of BAE Systems Mobility & Protection Systems said: ‘Building on the strengths of our global capabilities in the land systems sector, these new vehicles will provide much more capable, higher value assets to the Australian Army than those they replace.’



BAE Systems Mobility & Protection Systems, formerly Armor Holdings and Stewart & Stevenson, has produced more than 38,000 Family of Medium Tactical Vehicles (FMTV) for the US Army and other defence forces around the world since 1991.