AAR has announced that it has received an order from BAE Systems to manufacture mobile shelters for the U.S. Army's Family of Medium Tactical Vehicles (FMTV) program.

The one-year agreement has a one-year renewal option with a combined total value of $115 million. Work is scheduled to begin November 2008.

The AAR shelters include an expansible van for a 5-ton truck and a non-expansible shop van for a 2.5-ton truck that are equipped with heaters, air conditioners and basic electrical and lighting systems.

The shelters are used as maintenance shops, parts warehouses, command and control centers, and mobile offices to support and sustain operations in the field.

"We are proud to be selected by BAE Systems to provide mobility products that are now an integral part of the U.S. Army's ground operations," said David P. Storch, Chairman and Chief Executive Officer of AAR CORP.

"AAR shelters play an important role in the Army's ongoing efforts to execute and support ground activity, improve mobility and employ a more flexible deployment strategy."