U.S. Companies work on the final development of the M109A6 Paladin howitzer for U.S. Army 1602131.

"The contract structure provides maximum value by leveraging Loc's expertise in manufacturing and assembling final drives with BAE's expertise in system engineering design and analysis," said Chad Darr, director of Product Development at Loc. "It offers the program a smooth transition into low-rate initial production by manufacturing the developmental prototypes utilizing production intent processes."

Loc said nearly 600 final drive assembly vehicle sets are expected to be produced under the Paladin Integrated Management program.

"We are pleased to partner with BAE as we continue to design and produce superior products for our military clients," said Loc Performance Products President Lou Burr.

"Loc is honored to be recognized as having an important role in the development of next-generation fighting and supply vehicles, and looks forward to the continued production of reliable, high-performing products to meet the diverse needs of our nation's armed forces."