Army Awards Lockheed $1.2 Billion Contract for PrSM Increment 2

Overview

• The Army awarded Lockheed Martin a $1.2 billion cost-plus, firm-fixed-price, indefinite-delivery/indefinite-quantity contract on Monday to develop and field the Precision Strike Missile Increment 2 early operational capability.
• Increment 2 adds a multimode seeker designed to lock on to moving maritime targets and extend land‑based anti-ship strike reach, following a successful February flight test that launched about 350 kilometers.
• The Defense Department posting says Lockheed was the only solicited and received bidder, work locations will be decided with each order, and the contract runs through an estimated completion date of Sept. 13, 2031.
• The award formalizes earlier Pentagon moves to speed production after PrSM Increment 1 was used in combat in March and reports indicated U.S. forces expended large portions of their PrSM stocks, prompting a framework agreement and an $8.4 billion modification to boost Inc 1 output.
• The contract aims to expand industrial capacity and sustain frontline units while the Army advances later PrSM increments that seek greater range and lethality, so watch for ramped production, more flight tests, and shipment schedules that affect munitions availability for deployed forces.