The Marine Corps awarded BAE Systems $230 million to produce 32 Amphibious Combat Vehicle Recovery (ACV-R) variants, the fourth and final ACV mission role. Work concludes in November 2028.
What's happening
- BAE Systems received a $230 million contract modification for full-rate production of 32 ACV-R vehicles equipped with turret-mounted cranes for field maintenance and recovery.
- The award fulfills the Marine Corps acquisition objective for ACV-R, the final of four ACV mission variants, with delivery through November 2028.
- The Marine Corps funded the procurement with $241 million from the FY-26 budget reconciliation package, also addressing spare parts shortfalls across the broader ACV program.
Why it matters
- ACV-R production completes the Marine Corps amphibious vehicle modernization effort, closing out the multi-variant acquisition strategy after fielding medium-caliber cannon and other specialized versions.
- The recovery variant addresses critical logistics gaps by enabling forward maintenance and casualty evacuation, extending operational range and reducing dependence on rear-area support.
- Closure of the ACV-R procurement allows Marine Corps capital to shift toward fleet modernization and capability upgrades, with the service requesting $237 million for enhancements in FY-27.
Financial impact
- BAE Systems recognizes $230 million in revenue over the performance period through November 2028, timing dependent on delivery milestones and schedule of the 32 vehicles.
- The Marine Corps obligated $241 million in FY-26 funding for ACV-R procurement and spare parts, with additional $780 million allocated for 59 ACV-30 medium-caliber cannon variants in the same fiscal year.
The fine print
- The contract is a modification, suggesting prior ACV-R development and testing phases are complete and full-rate production is now approved.
- Work concludes November 2028, establishing a defined end date for the ACV acquisition program barring future production batches.
Source: insidedefense.com · Oct 5, 2026 · Drafted with Claude, reviewed by Industrial Base Alpha.