The contract is an indefinite-delivery/indefinite-quantity (IDIQ) agreement, meaning the full scope and quantity are not fixed at the outset. The maximum value of the contract is $423.3 million.
Although the Pentagon’s statement did not explicitly name the weapon system, the order clearly concerns the M109A7 variant. Funding for the programme has been secured in the fiscal years 2024 and 2025, with an initial allocation of nearly $214.5 million granted at the time of the contract’s signing.
Manufacturing work will be carried out at several sites across the United States, including York (Pennsylvania), Sterling Heights (Michigan), Aiken (South Carolina), Elgin (Oklahoma), and Anniston (Alabama). The M109A7 is a significantly upgraded version of the M109A6, featuring a new chassis that incorporates components from the Bradley Fighting Vehicle family, such as the power pack and suspension systems.
