BAE's family of medium tactical vehicles includes cargo trucks, wreckers, vans, tractors and load handling systems, among others designed for military applications. The $2.2 billion contract for 10,000 vehicles includes options for an additional 10,000 vehicles.

The BAE tactical vehicles are designed with common parts including engines, transmissions, power trains and tires, among other interchangeable mechanics that ease service and maintenance costs to the military. Officials say BAE will also provide integrated field support under the contract.

"BAE Systems will continue providing the most advanced tactical vehicles to our soldiers and Marines," Denny Dellinger, BAE Systems president of mobility and protection systems, said in a statement.

"The capacity expansions over the last two years allow BAE Systems to properly team with U.S. Army Tank-automotive and Armaments Command, and Defense Contract Management Agency to meet the pressing truck and trailer needs of the U.S. Army."