BAE says army test vehicles are ready

Defence company BAE Systems Australia says its test vehicles bidding for a major defence force contract are ready to go.

The three AMV35 mounted combat reconnaissance vehicles could now be tested by the army for 12 months as part of a tender evaluation process.

"We believe the AMV35 is technically superior to its rivals and is a value-for-money solution for the Australian Defence Force," BAE chief executive Glynn Phillips said on Tuesday.

The federal government is expected to announce the short list of vehicles to be tested in March.

The project aims to deliver to the army the next generation of armoured fighting vehicles with high levels of firepower, protection and mobility.

BAE said its offering was a low-risk solution and would create more than 200 jobs through its commitment to manufacture, assemble and support the vehicles in Australia.

This will secure and retain local production capabilities and contribute significantly to the Australian economy throughout the expected 30-plus year life of the vehicles, the company said.