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GenDyn, BAE awarded $900M Ground Combat Vehicle contract
Friday - 8/19/2011, 9:59am EDT
The Army is moving forward with its new Ground Combat Vehicle program and has awarded hundreds of millions in two huge, new contracts to show for it.
General Dynamics and BAE Systems are the big winners of the nearly $1 billion contract. The awards, about $440 million each, are for the technology development phase of a new Infantry Fighting Vehicle. The contracts span 24 months.
The contract award is the first step after the GCV program was given permission fro DoD to enter the technology development phase, the Pentagon said in a release.
In the release, Army Secretary John McHugh said launch of the GCV would provide "much needed protection and mobility to soldiers in combat."
But even at the beginning stages of the program, finances are top of mind, he added.
"Given the economic environment the nation currently faces, the Army recognizes that it is imperative to continually address requirements as we build a versatile, yet affordable, next-generation infantry fighting vehicle," McHugh said.
General Dynamics said it will work with Lockheed Martin and Raytheon, among other defense contractors, according to a company release.
The Army said it hopes to have new vehicles on the ground in seven years.
This story is part of Federal News Radio's daily DoD Report. For more defense news, click here.