BAE's $1.3 Billion Contract for Howitzer Delayed by U.S. Army
- The Army cites a need to improve quality of the vehicles
- Among setbacks was a six-month delivery delay for faulty welds
An M777 155mm lightweight field howitzer at the International Defence Exhibition (IDEX) in Abu Dhabi in 2015.
Photographer: Gabriela Maj/Bloomberg
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The U.S. Army is delaying approval of full-scale production of BAE Systems Plc’s new self-propelled howitzer, citing the need to improve quality before proceeding with additional contracts options valued at about $1.3 billion.
The Army postponed triggering the most lucrative phase of the program for London-based BAE to “adequately address quality control issues,” service spokeswoman Ashley John said in an email Wednesday. “The Army will continue to work closely with BAE leadership to resolve the concerns.”