The 500th MRAP armor upgrade took place at BAE's South Carolina facilities where the company is working on the contract.
Officials say BAE is under contract to manufacture more than 2,800 of the Caiman MRAP variant in an initiative by the U.S. Defense Department and allied countries to offer additional protections to troops from improvised explosive devices and other threats in Iraq and Afghanistan.
BAE is expected to install the advanced armor kits on approximately half of the production contract.
"The enhanced protection kits significantly widen the spectrum of threat that Caiman can defeat," Chris Chambers, BAE Systems vice president of medium and heavy vehicles, said in a statement.
"We focused on bringing this to our armed forces as quickly as possible and have done so."