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In December 2007 the Department of Defense (DoD) announced a contract award for an additional 3,126 Mine Resistant Ambush Protected (MRAP) vehicles to be manufactured and completed by end of July 2008. Four manufacturers received the delivery orders totalling about $2.6 billion. MRAPs are prized by the military because they provide much improved protection, specifically against Improvised Explosive Devices (IEDs), which cause 70% of all US casualties in Iraq.
The program started in 2006 when between October and December 2006 the US Navy evaluated nine suppliers for the procurement of MRAP trucks, destined to augment and later replace up-armoured HMMWVs currently operating in Iraq and Afghanistan. Force Protection Industries, Inc. (FRPT) was one of 9 vendors authorized under MRAP.
The initial joint services program was expected to cost over US$2 billion. However, given the reduced performance of lightly armoured vehicles in Iraq and Afghanistan, the requirement for MRAP rose to over 7,700 vehicles, worth an approximate $8.4 billion. Current forecasts, based on urgent requirements directed by the DoD, call for the rapid acquisition of 17,000 - 20,000 MRAP vehicles, replacing protected HMMWV currently operating in the theatre. The estimated procurement cost could reach $10 billion. To satisfy the demand, manufacturers are producing the vehicles at their full capacity.
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