BAE’s $1.3 billion contract for howitzer delayed

The U.S. Army is delaying approval of full-scale production of BAE Systems’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.”

The delay came after Bloomberg News reported last week that the howitzer’s manufacture was hobbled by poor welding, supply-chain problems and delivery delays. Among the setbacks: a sixmonth halt in deliveries last year because of welding flaws and the return of 50 of 86 vehicles that had already been delivered to repair production deficiencies.

Self-propelled 155mm howitzers are the centerpiece of the Army’s artillery. The weapon is mounted on a tracked vehicle and travels with another that hauls ammunition. The Army’s “long-range precision strike” program tops the service’s list of modernization priorities.

BAE didn’t have an immediate comment. Company spokeswoman Alicia Gray said last week that the company “has a rigorous inspection process to ensure we deliver the highest-quality products to the customer” and has “modified aspects of our welding practices.”

The Army eventually wants to buy 576 howitzers and ammunition carriers in an $8.1 billion program. An initial $413.7 million contract laying the groundwork for full production was awarded in December.

A full-production decision would have increased vehicle production to about 60 from 48 a year.