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Anniston Army Depot Chooses United Defense to Provide up to $479M of Overhaul Work on Combat Vehicles

Category: Contracts

M109A6 Paladin Self Propelled Howitzer

ANNISTON, AL, April 25, 2005 - United Defense Industries, Inc. (NYSE:UDI) received four contracts, which could ultimately total $479 million, from Anniston Army Depot for its Steel Products Division to perform "zero hours, zero miles" overhaul maintenance on the M109A6 Paladin Self Propelled Howitzer, the M88A1 Medium Recovery Vehicle, the M992A2 Field Artillery Ammunition Supply Vehicle, and the M9 Armored Combat Vehicle.

The contracts are structured as Requirements contracts, meaning that actual work is only funded under each contract as and when the Army provides a specific work order to United Defense. The company anticipates its first work order this summer. The contracts would permit a maximum of $153.9 million in work orders during the first year, and additional amounts during the two succeeding option years.

Each vehicle or its subcomponents awarded under an order must be overhauled to "like new" condition, in preparation for combat. “By awarding these contracts to United Defense, the Depot will be able to more efficiently manage its overflow workload,” said Mr. Robert Houston, Vice President and General Manager. "We designed, engineered, and manufactured these vehicles. We offer vehicle expertise that no one else has. These contracts were competed and choosing us to execute represents the lowest risk, best value option for the Depot. In addition, by awarding to United Defense, the Depot is building onto the successful Private/Public Partnership that already exists between us on the M113 Family of Vehicles."

Cindy Garrison

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$245.3 Million U.S. Army Contract to Continue M109A7 Production

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M992A2 (Ammunition resupply vehicle)

M109A6 Paladin (Self-propelled howitzer)


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