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BAE Systems Wins $184M Contract to Supply 30 ACV-30 Amphibious Combat Vehicles to U.S. Marines.
The U.S. Department of War has approved a $184.4 million contract modification for BAE Systems to build 30 ACV-30 Amphibious Combat Vehicle variants for the Marine Corps, pushing the program’s potential value to about $3.86 billion if all options are exercised. The move comes as Operation Southern Spear drives the largest U.S. naval and Marine buildup in the Caribbean in decades, amid rising tensions with Venezuela and growing focus on contested coastal terrain.
On December 1, 2025, the U.S. government approved a $184.4 million contract modification for BAE Systems to produce 30 ACV-30 Amphibious Combat Vehicle variants equipped with medium-caliber cannons for the U.S. Marine Corps, according to a contract notice published by the U.S. Department of War. This option exercise, part of a wider framework that could reach nearly $3.86 billion through 2028, comes as U.S. naval and Marine forces conduct their largest Caribbean deployment in decades under Operation Southern Spear amid an escalating confrontation with Venezuela. Against this backdrop, an order for additional turreted ACV-30s goes beyond routine fleet renewal: it signals that Washington expects to rely heavily on armored amphibious units in contested littorals in the near term, from the Caribbean to other maritime flashpoints.
BAE Systems has been awarded a $184.4 million contract to deliver 30 ACV-30 amphibious combat vehicles, increasing turreted firepower available for future coastal operations (Picture Source: BAE)
As the gun-armed infantry fighting vehicle variant of the ACV family, the ACV-30 combines an 8×8 amphibious chassis with Kongsberg’s remotely operated Medium Caliber Turret (MCT-30), integrating a 30 mm Mk 44 Stretch Bushmaster dual-feed cannon and coaxial machine gun. This configuration gives Marine infantry their heaviest direct-fire gun since the retirement of the M1A1 Abrams, with the cannon and advanced optics able to detect and engage targets at distances beyond five kilometers, providing overwatch and anti-armor capability in the littoral environment. The turret is operated from under armor, freeing internal volume and maintaining amphibious trim while allowing the vehicle to transition rapidly from ship-to-shore movement to mechanized maneuver inland. Borne from the SuperAV 8×8 hull co-developed with Iveco, the ACV-30 shares the family’s ability to operate in significant surf and then sustain higher speeds and range on land than the legacy tracked Assault Amphibious Vehicle it is replacing, while incorporating a hull and seating architecture designed to withstand stronger under-body blasts. Within the ACV program, the ACV-30 will operate alongside the ACV-P personnel carrier, the ACV-C command variant and the ACV-R recovery vehicle, giving Marine formations a modular pool of amphibious platforms tailored for different roles.
The latest contract modification cements the transition from testing to full-rate production of the ACV-30. The $184.4 million award, tied to contract M67854-16-C-0006, covers 30 production-standard turreted vehicles plus associated fielding, support and spares, implying an average package cost of roughly $6.1 million per vehicle when support elements are included. Work is spread across several U.S. industrial hubs, York, Pennsylvania (60%), Aiken, South Carolina (15%), San Jose, California (15%), Sterling Heights, Michigan (5%) and Stafford, Virginia (5%), underlining how the ACV line supports a geographically distributed supply chain of hull fabrication, integration and systems engineering. Funding is drawn from the Marine Corps’ Fiscal Year 2026 procurement accounts, and the current batch is scheduled to be completed by March 2028, giving BAE Systems and its partners a multi-year production horizon. This award builds on earlier contracts for production-representative test vehicles and initial series lots; current planning foresees a fleet of around 175 ACV-30s within a total ACV inventory that also includes several hundred ACV-P, ACV-C and ACV-R variants. In budgetary terms, committing to another 30 ACV-30s now helps protect specialized turret and hull supply chains from disruption and signals that the Marine Corps intends to sustain the ACV line at scale rather than limiting it to small, experimental batches.
The timing of this order closely tracks the evolution of the U.S.–Venezuela crisis in the Caribbean. Since August 2025, the United States has progressively built up a naval task force in the southern Caribbean, centered on the USS Iwo Jima Amphibious Ready Group and, more recently, the USS Gerald R. Ford carrier strike group, officially to combat narcotics flows but widely interpreted as a coercive signal toward Caracas. Amphibious assault ship USS Iwo Jima and its associated San Antonio-class transport docks are designed specifically to carry Marine Expeditionary Units with their vehicles, helicopters and landing craft, enabling rapid ship-to-shore movement of armored assets if Washington ever chooses to escalate beyond strikes against vessels. In parallel, U.S. Marines of the 22nd MEU have been conducting amphibious training and flight operations in Puerto Rico, with exercises focused on beach landings, reconnaissance and joint drills with the Puerto Rico National Guard; imagery associated with these activities highlights Amphibious Combat Vehicles conducting surf-zone operations, underscoring that the new platforms are already being trained in the same theater as the Venezuela-linked crisis. The deployment is further reinforced by regional enablers: a U.S. long-range radar installed in Trinidad and Tobago and expanded U.S. access to Dominican airfields under counter-narcotics agreements, both of which risk drawing Caribbean states more deeply into a confrontation that Caracas frames as a threat to its sovereignty.
Viewed from this perspective, the ACV-30 contract represents more than just a procurement decision; it is a strategic adaptation to an era marked by increasingly frequent and complex littoral conflicts. Combat experience in Ukraine has underscored the importance of well-protected, medium-caliber gun vehicles for infantry support in environments saturated with drones, loitering munitions, and anti-tank weapons, precisely the operational role envisioned for the ACV-30 by the U.S. Marine Corps. Concurrently, the Marine Corps’ Force Design initiative has shifted away from traditional tank units toward dispersed, sea-based forces capable of securing critical maritime chokepoints and launching raids from the sea in key regions such as the Western Pacific and the Caribbean.
The decision to expand ACV-30 production amid ongoing amphibious operations near Venezuela indicates a recognition by the U.S. government that these deployments are not temporary; rather, they reflect a sustained requirement for heavily armed, survivable amphibious infantry platforms. These platforms must be capable of operating from large amphibious assault ships and transport docks in contested coastal waters, enhancing the Marine Corps’ ability to project power in complex maritime environments. While the Caribbean buildup is officially framed as a counter-narcotics effort, the combination of air strikes, carrier presence, and amphibious forces provides Washington with a credible option to execute limited ground operations or seize strategic sites if political decisions evolve in that direction. Each incremental ACV-30 acquisition thus strengthens the Marine Corps’ operational flexibility and readiness to address mid-term challenges in contested littoral zones. This approach aligns closely with broader strategic imperatives emphasizing agility, distributed maritime operations, and robust fire support for expeditionary forces confronting advanced anti-access/area-denial threats.
The contract for 30 additional ACV-30s, the multi-billion-dollar ceiling of the broader ACV program and the visible deployment of amphibious forces in the Caribbean all point in the same direction: the United States is quietly placing armored amphibious warfare at the center of its response toolkit for regional crises. The ACV-30 gives Marine units a protected, sea-mobile platform able to land from over the horizon and deliver precision 30 mm fire in complex coastal terrain, exactly the sort of capability demanded by operations around Venezuela’s shores and, by extension, in other contested littorals. By committing fresh Fiscal Year 2026 resources to ACV-30 production while tensions with Caracas continue to rise, Washington is signaling that it expects amphibious formations to remain in high demand and is determined to ensure they are equipped not just to arrive on station, but to fight decisively if deterrence fails.
Written by Teoman S. Nicanci – Defense Analyst, Army Recognition Group
Teoman S. Nicanci holds degrees in Political Science, Comparative and International Politics, and International Relations and Diplomacy from leading Belgian universities, with research focused on Russian strategic behavior, defense technology, and modern warfare. He is a defense analyst at Army Recognition, specializing in the global defense industry, military armament, and emerging defense technologies.