(Tribune News Service) — Defense contractor BAE Systems, which runs a large technical and manufacturing campus in Sterling Heights, Mich., announced it has received a $797 million contract to keep manufacturing the Armored Multi-Purpose Vehicle (AMPV) for the U.S. Army.

Representatives of the British company reported last week it has received the contract to continue production of the AMPV, with additional options for a potential total contract amount of $1.

6 billion.

The award brings the AMPV program into full-rate production, making it the first newly designed and built tracked vehicle in the U.S. Army's fleet to reach this production stage in three decades, the contractor announced in a news release.

The AMPV replaces the U.S. Army's fleet of Vietnam War-era M113 family of vehicles. The multi-mission AMPV family of vehicles provides critical survivability, mobility, and interoperability upgrades to the Armored Brigade Combat Team (ABCT).

"Entering full-rate production is a momentous milestone in the lifecycle of a production program for both the U.S. Army and BAE Systems," Jeremy Tondreault, president of the Platforms & Services sector at BAE Systems, said in the release.

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