The development of a second tranche of FSVs began in 1972, when a requirement for further such AFVs was issued. It was decided that the new AFV would use the turret of a FV101 Scorpion fitted to the chassis of a M113A1 APC. This turret was armed with a 76 mm L23A1 gun. Buoyancy aids were also installed on the sides and front of the hull so that the vehicles remained amphibious. The prototype vehicles began to be constructed by the Ordnance Factory in Maribyrnong, Victoria, during 1974; three were completed in mid-1975. The design was approved for production in 1978, and another 45 FSVs were eventually completed by converting newly acquired M113A1s. The type was later designated the Medium Reconnaissance Vehicle (MRV).