BAE Systems has secured a $538 million U.S. Army contract to remanufacture Bradley vehicles and provide spare parts, with options for additional vehicle remanufacturing and spares. If all options are exercised, the contract's total value will be $1.3 billion.

Under the initial contract, BAE Systems will remanufacture 160 M2A3 vehicles, 60 M3A3 vehicles and 32 M3A3 Bradley Fire Support Team Vehicles in conjunction with the Red River Army Depot through a public private partnership.

Initial disassembly and subsystem rebuild will be performed at the depot, with final disassembly and structural modifications completed by BAE Systems in Fayette County, Pennsylvania.

Final assembly, integration and test will be conducted at the company's facility in York, Pennsylvania. The company will also provide 200 different types of spare parts in varying quantities.

"BAE Systems and Red River Army Depot are ready to meet the demands of the U.S. Army by providing these critical combat systems in a timely and efficient manner," said Andy Hove, vice president of Combat Systems program for BAE Systems.

"The vehicles funded by this contract will be equipped with Improvised Explosive Device Armor and Bradley Urban Survivability Kits and will continue to provide superior survivability to the soldiers deployed in theatre."