Subsidiaries of General Dynamics and Thales are planning to jointly bid on a contract to design and build combat reconnaissance vehicles for the Australia.

The contract from Australia's Department of Defense is for the first 225 8x8 vehicles and will be issued under the country's Land 400 Phase 2 - Mounted Combat Reconnaissance Capability program. The program envisages a total of 700 vehicles and carries a total value of about $7.6 billion.

The request for tender process will conclude in late June and as many as 10 contractors are expected to enter the competition.

Among them is BAE Systems, which has teamed with Patria of Finland to offer Patria's 8x8 armored modular vehicle.

General Dynamics Land Systems-Australia said the planned teaming with Thales Australia comes under memorandum of understanding signed recently by the two entities.

"General Dynamics Land Systems and Thales will leverage our strengths to deliver a low-risk Land Combat Vehicle System capability for LAND 400," said Ian Cook, managing director of General Dynamics Land Systems - Australia. "This is a great opportunity for us to combine world-leading MOTS (military off-the-shelf) 8x8 platforms with proven in-country manufacturing, integration, upgrade and through-life support.

"Our arrangement will maximize domestic and international opportunities for our Australian industry and builds on the success of our current platforms in protecting Australian soldiers."

Added Kevin Wall, Armaments & Protected Vehicles vice president, Thales Australia: "General Dynamics is a global powerhouse in military vehicles. Combined with our experience delivering, supporting and upgrading the life-saving Bushmaster in Australia, we believe the collective expertise of our two companies represents a compelling offer for LAND 400."

General Dynamics Land Systems is the manufacturer of 8x8 and tracked military off-the-shelf combat reconnaissance vehicle, infantry fighting vehicles and maneuver support vehicle. Thales Australia has an established in-country industrial base for vehicle design, manufacture and through-life support. It is the manufacturer of the Bushmaster protected military vehicle and is also expert in electronics, electro-optics, simulation and platform systems integration.

The Australian Defense Force's fleet of Light Armored Vehicles will near the end of their life next decade and the new vehicles will replace them.

"The ASLAV is the ADF's current mounted combat reconnaissance vehicle and has seen extensive operational service, including in East Timor, Iraq and Afghanistan," The Minister for Defense Kevin Andrews said last month. "The fleet will reach the end of its life around 2021. The government is committed to replacing and enhancing the Army's fleet of combat vehicles and other land force capabilities to best protect our soldiers."