General Dynamics Awarded USD $67 Million Modification to Previously Awarded U.S. Army RG-31 Mk5 Contract

The U.S. Army TACOM Life Cycle Management Command (LCMC), in support of the Program Executive Office for Combat Support and Combat Service Support (PEO CS&CSS), has awarded a USD $67.3 million modification to a previously awarded contract for RG-31 Mk5 vehicles to General Dynamics Land Systems – Canada. General Dynamics Land Systems, the Canadian company’s parent corporation, is a business unit of General Dynamics (NYSE: GD).

Under this contract modification, General Dynamics Land Systems – Canada will provide 111 RG-31 Mk5E Mine Protected Vehicles. The contract was signed through the Canadian Commercial Corporation, a Crown Agency of the Canadian Government. Under this contract modification, General Dynamics Land Systems – Canada will provide the program management while BAE Systems Land Systems OMC of South Africa will manufacture the vehicles. Deliveries will occur from August 2008 to October 2008.

Since February 2005, the TACOM LCMC has ordered RG-31 vehicles based on Operational Need Statements (ONS) by the U.S. Army for route clearance vehicles. This is the third ONS requirement supported by TACOM LCMC. Under the previous ONS 1 and ONS 2, 148 RG-31 Mk3 and 307 RG-31 Mk5 vehicles were ordered. In total, including this modification, 566 RG-31 vehicles have been ordered to meet the ONS requirement.

The 111 RG-31 Mk5E vehicles ordered under ONS 3 are similar to the 600 RG-31 Mk5E vehicles ordered by the U.S. Marine Corps Systems Command (MCSC) for its Mine Resistant Ambush Protected (MRAP) vehicle program.