BAE Systems wins deal for U.S. Army vehicles

WASHINGTON (Reuters) - BAE Systems (BAES.L) won a $1.66 billion (85 billion pound) fixed price contract to supply the U.S. Army with 10,000 medium tactical vehicles, the Pentagon said on Monday.

BAE said the contract could be worth $2.2 billion if the Army exercised an option for an additional 10,000 vehicles. It said the contract covered 8,400 Family of Medium Tactical Vehicles (FMTV) and 1,600 trailers.

FMTV trucks include a wide range of vehicles including cargo trucks, shop vans, tractors, front loading systems and Low Velocity Air Drop configured trucks, BAE's newest truck.

The family of trucks is designed to accept an adaptable armour system offering high levels of protection when needed.

The contract also includes program support and runs through the end of 2010, the Defense Department said in its daily listing of major weapons contracts.

BAE said it had already supplied over 48,000 of the vehicles to the U.S. Army. Different versions of the trucks share engines, transmissions, power trains, tires and cabs, which helps lower logistics and operating costs.

BAE was the Pentagon's sixth-biggest supplier in fiscal 2007, winning $9.2 billion in prime contracts, up from $4.7 billion a year earlier. It was alone among Europe-based companies on the list of top 10 Pentagon contractors.

(Reporting by Andrea Shalal-Esa; editing by Jeffrey Benkoe, Phil Berlowitz)