Lockheed Martin clinches nearly USD 5 billion contract for Precision Strike Missile (PrSM) production

By Defence Industry Europe

The U.S. Army has awarded Lockheed Martin a USD 4.9 billion contract for the production of Precision Strike Missiles (PrSM) under Increment One of the programme. The firm-fixed-price agreement, totalling USD 4,937,045,400, was issued by the Army Contracting Command at Redstone Arsenal, Alabama, following a competitive solicitation with one bid received.

 

PrSM is a ground-launched, long-range precision missile system developed to replace the Army Tactical Missile System (ATACMS). It is designed for use with the M270 Multiple Launch Rocket System (MLRS) and the M142 High Mobility Artillery Rocket System (HIMARS).

Increment One of the programme focuses on initial operational capabilities, including extended range, improved accuracy, and responsiveness. The missile is intended to enable deep strikes against fixed, high-value targets such as command centres, air defence systems, and logistics facilities.

 

 

The contract follows a series of test firings that have progressively demonstrated the missile’s performance. In May 2023, a test at Vandenberg Space Force Base confirmed the missile’s ability to engage targets at extended range.

In November 2023, the U.S. Army conducted the first soldier-operated test of the PrSM at White Sands Missile Range, assessing operational handling and performance. A further successful test took place in February 2024, supporting the transition to full-rate production.

 

 

Future increments of the PrSM programme are expected to include additional capabilities such as seeker technology for mobile targets and multi-mode guidance. These developments are aimed at expanding the system’s operational flexibility.

Work locations and funding allocations will be confirmed with each delivery order under the contract. The estimated completion date for the current production phase is 30 March 2030.

 

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