Amphibious Vehicle Recap..

A quick recap on some pretty honest statements about the current state of Marine Corps armored vehicle procurement.

* The company is also delivering two Amphibious Combat Vehicle (ACV) blast test hulls to the Corps in mid-2013, one is based on the current AAV, and one is a brand-new design said Monica Mills, for the company’s AAV program. Mills added that the company is pulling on its experience with the Bradley and PIM programs, among others, in order to develop the second new hull.

BAE is preparing to fight the war on two fronts.  Either a new vehicle or refurbishing the old vehicle to meet the ACV requirements.

*Lockheed Martin has embedded US content into the design, including technology and protection systems. The vehicle on show featured an RPG net and Textron Marine and Land Systems turret.  Magness said the vehicle would be licensed-produced in the US, although at which company facility was still to be determined. The company is currently working to develop its US supplier base.

Did you miss the tell in the above statement?  It has the turret from the current AAV.  Not only are they aiming at meeting the requirement for a family of vehicles (Command, Recovery and Troop Carrier) but another article indicates that Lockheed Martin is prepared for the price war.  Remember the JLTV competition?  AOL ran an article stating that Lockheed Martin has the most tech heavy vehicle but also one that was going to be extremely price competitive.  In other words Lockheed Martin is well aware that they might be facing a price war and it looks like they're ready to fight it...if the JLTV is any indication...

*The Chilean Marines are negotiating the acquisition of 12 AAV-7 tracked armored amphibious vehicles from U.S. Marine surplus stocks. This potential acquisition is part of the expansion of capabilities associated with the recent incorporation of the amphibious assault ship Sargento Aldea, acquired from the French Navy.

This is really old news but it fits here because it means that Chile, Brazil, Japan and the USMC are all in the market for either an upgraded AAV  or ACV.  Marines are popular worldwide...an elite force that has been shown by the Mexican's to be reliable and easy to deploy if needed.  Because of this the market for an Amphibious Assault Vehicle is heating up.

*When asked to compare MPC to the ACV in terms of its importance to the Marine Corps, Taylor, in some ways, made the case against the MPC when Congress considers its future.  “MPC is not satisfying a ship to shore requirement. I think the term is inland waterways,” Taylor said. “It’s envisioned to satisfy a much more limited requirement in terms of mobility.”  Congress has not proven too keen toward investing in the development of vehicles that fulfill “limited requirements.”  The Marine Corps’ deputy assistant commandant for Programs and Resources made the point at Modern Day Marine that the expected defense spending cuts will force leaders to deliver the “best Marine Corps the country can afford” hinting it will not get every modernization program they may want.

This should chill the blood of every manufacturer bidding on the MPC contract.  The program manager for the MPC basically said that the vehicle is a nice to have, not a must have.

The scorecard?  General Dynamics and BAE are going to mix it up on the AAV upgrade/ACV program...Still no view on what GD is going to offer for the ACV but BAE is working to cover both bases.  Not only an ACV based on the existing hullform (which says enhanced upgrade to me) but also a new vehicle if funds become available.  In the AAV upgrade/ACV contest...advantage BAE.  In the MPC program, its hard to bet against Lockheed Martin.  What really has my attention is the news that came down about the JLTV.  They're willing to fight on price and in the Lockheed Martin world view of things this is a tiny contract.  Is it worth pushing the MPC forward as a loss leader just to get into the market?  I don't know but if they are then BAE won't be in a position to match them.  Advantage LM.