Saab Secures $22.4 Million U.S. Army VTESS Contract to Enhance Combat Training

Executive Summary:
Saab has received a $22.4 million U.S. Army order under the BEST MAC framework to deliver Vehicle Tactical Engagement Simulation System (VTESS) Base Kits. The award supports modernization of the Army’s live training infrastructure, enabling realistic force-on-force exercises across tactical and non-tactical vehicle fleets while preserving compatibility with existing Tactical Engagement Simulation Systems.

The U.S. Army has awarded Saab a $22.4 million order under the Bridge to Evolution Synthetic Training Environment Tactical Engagement Simulation Systems Multiple-Award Contract (BEST MAC), reinforcing the company’s role as a key supplier of advanced military training technologies. The contract, announced through the Army’s Capability Program Executive Office for Simulation, Training, Test and Threats (CPE ST3), carries a potential value of $60.8 million over a 60-month period.

The award falls under Lot 2 of the BEST MAC program and covers delivery of Vehicle Tactical Engagement Simulation System (VTESS) Base Kits designed to support the Army’s Tactical Engagement Simulation Systems (TESS) modernization effort.

According to Saab, the systems will enable U.S. Army vehicles to participate in highly realistic force-on-force exercises while utilizing existing vehicle platforms and weapon systems.

Saab President and CEO in the United States Erik Smith stated that the VTESS kits provide a significantly improved and more soldier-friendly training capability while supporting evolving Army requirements.

Deep Technical & Strategic Context Analysis

The VTESS program represents a critical component of the U.S. Army’s broader modernization effort aimed at creating a fully integrated synthetic and live training environment. Tactical Engagement Simulation Systems have long served as the backbone of Army combat training, using laser-based technology to replicate battlefield engagements without the cost, risk, or logistical burden associated with live ammunition exercises.

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VTESS builds upon legacy MILES (Multiple Integrated Laser Engagement System) architecture but introduces greater accuracy, improved reliability, enhanced data collection capabilities, and more sophisticated after-action review functions. Sensors mounted on combat vehicles detect laser strikes generated by weapon simulators, allowing units to replicate realistic combat effects and assess battlefield performance in real time.

The BEST MAC framework itself is part of the Army’s transition toward the Synthetic Training Environment (STE), a next-generation training ecosystem intended to combine live, virtual, constructive, and gaming-based training capabilities. By maintaining interoperability with legacy TESS equipment, VTESS reduces transition risks while enabling gradual modernization across the force.

Strategically, the program aligns with the Army’s emphasis on preparing for large-scale combat operations against near-peer adversaries. Recent exercises have highlighted the importance of realistic brigade and division-level maneuver training, particularly as armored and mechanized formations face increasingly complex battlefield conditions involving drones, electronic warfare systems, and precision-guided weapons. Advanced engagement simulation systems allow commanders to evaluate tactics, techniques, and procedures under realistic combat conditions without expending operational resources.

Contract Breakdown & Details

Contract Overview

Contract Recipient: Saab
Customer: U.S. Army
Managing Organization: Capability Program Executive Office Simulation, Training, Test and Threats (CPE ST3)
Program: Tactical Engagement Simulation Systems (TESS)
Contract Vehicle: BEST MAC (Bridge to Evolution Synthetic Training Environment Tactical Engagement Simulation Systems Multiple-Award Contract)
Contract Type: Firm Fixed Price
Initial Award Value: $22.4 million
Potential Total Value: $60.8 million
Contract Duration: 60 months

What Saab Will Deliver

Vehicle Tactical Engagement Simulation System (VTESS) Base Kits
Laser detector training systems
Vehicle-mounted engagement simulation equipment
Force-on-force combat training capabilities
Integration with existing Army TESS infrastructure
Compatibility with tactical and non-tactical military vehicles

Key Capabilities

Realistic Combat Simulation

Replicates battlefield engagements using laser-based technology
Simulates direct-fire weapon effects without live ammunition

Enhanced Training Data

Why The Contract Matters

The award highlights the Army’s continued investment in readiness-focused training systems at a time when military planners are emphasizing preparation for high-intensity conflict scenarios. As combat training centers increasingly incorporate multidomain warfare concepts, advanced simulation technologies such as VTESS provide commanders with realistic and scalable tools for evaluating combat effectiveness.

For Saab, the contract further strengthens its position within the U.S. defense training and simulation market, where the company has established a significant presence through live training, instrumentation, and synthetic environment solutions supporting multiple branches of the U.S. military.

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