The U.S. Army has selected BAE Systems for its program to produce a replacement vehicle for Vietnam War-era M113 armored personnel carriers.

Under an award worth as much as $1.2 billion, BAE Systems is to engineer, manufacture and develop 29 low-rate production Armored Multi-Purpose Vehicles.

The contract features a 52-month base term worth $383 million and an option to begin the vehicles' low-rate initial production phase for another 289 vehicles.

"This award represents a significant milestone for the U.S. Army and BAE Systems," said Mark Signorelli, vice president and general manager of Combat Vehicles at BAE Systems. "The AMPV will provide a substantial upgrade over the Army's current personnel carrier fleet, increasing the service's survivability, force protection, and mobility while providing for future growth potential.

"It also confirms BAE Systems' role as a leading provider of combat vehicles."

BAE Systems said the 26 Engineering, Manufacturing, and Development phase vehicles to be produced will cover all planned AMPV variants, including mortar carrier, mission command, medical evacuation, medical treatment and general purpose.

BAE Systems said its AMPV leverages the design of the Bradley Fighting Vehicle and others to meet the Army's force protection and all-terrain mobility requirements being able to maneuver with Armored Brigade Combat Teams.

Working as part of BAE Systems' team for the vehicle are DRS Technologies, Northrop Grumman, Air Methods Corporation, and Red River Army Depot.

Work under the award will be conducted at company facilities in Pennsylvania and Michigan.