Non-Subscriber Extract
BAE Systems declares US business does not rely on MRAP
By Guy Anderson
10 December 2007
BAE Systems has described the strong United States demand for Mine Resistant Ambush Protected (MRAP) vehicles as the "jam" rather than the "bread and butter" of its business, adding that the future of its US Land & Armaments (L&A) division does not depend on the programme.
The group has prime contractor status for 2,305 of the 3,063 MRAP vehicles ordered by the US to date. This is made up of 1,446 Category I vehicles (1,154 Caimans, 259 SOCOM and 33 RG33 vehicles) and 859 Category II MRAPs (16 Caimans, 715 RG33 6x6 and 128 RG33 heavy armoured ground ambulance units).
In addition, L&A - BAE Systems Inc's largest division, with 17,000 employees and sales of USD5.8 billion - has subcontracts and licences for 758 additional MRAP vehicles (134 Force Protection Cougars and RG31 vehicles).
Contracts relating to the Caiman expire in February 2008, while RG33 deliveries will be completed by April. In common with other contractors, BAE Systems is looking towards the possibility of further awards.