The award for eight M88A2 Heavy Equipment Recovery Combat Utility Lift Evacuation Systems, which can haul 70-ton combat vehicles, is worth$31.8 million.
The M88A2 Hercules features improved power-assisted braking to enable the recovery vehicle to tow an M1A1 tank; increased horsepower; an improved electrical system and an enhanced hydraulic system.
"BAE Systems is answering the need for a cost-effective, self-supporting, heavy recovery performance vehicle," said Mark Signorelli, vice president and general manager of Vehicle Systems at BAE Systems.
"Hercules will provide the Iraqi military with a recovery vehicle that has been tested and proven to tow and hoist today's heaviest combat vehicles."
Work on the contract will be performed at BAE's facilities in York, Pa., and Aiken, S.C. It is expected to begin in late 2013 and be completed in the middle of the following year.
Eight M88A2s were produced for the Iraqi army by BAE Systems in 2010.