The U.S. Army has selected Lockheed Martin (NYSE:LMT) for an indefinite delivery, indefinite quantity (IDIQ) contract worth up to $1.2 billion to produce Increment 2 of the Precision Strike Missile (PrSM), as per a recent press statement. The deal follows a second flight test that confirmed the missile’s ability to engage moving maritime targets.
Contract and Testing
The IDIQ covers initial procurement, follow-on production and continued development of PrSM Increment 2. Lockheed Martin will carry out the work at its own facilities and across its wider U.S. industrial base.
PrSM Increment 2 completed its first flight test in March and its second in August. During the August test, the missile launched from a HIMARS platform, deployed protective covers and successfully engaged its target while gathering critical flight data. Technologies from Lockheed Martin’s Strigo family of solutions have shaped elements of the missile’s guidance package. The company plans further flight tests through 2027.
Strategic Significance
Increment 2 introduces a multimode seeker that lets the missile strike moving land and maritime targets, broadening the Army’s long-range strike options. The award pushes the programme from development into production, a milestone for the Army’s long-range precision fires strategy.
The contract builds on wider Department of War investment in PrSM. Lockheed Martin is quadrupling its PrSM production capacity while developing additional increments of the missile system.
Industry Response
Dave Griser, vice president of Precision Fires Launchers and Missile at Lockheed Martin, commented: “This award marks an important step in delivering PrSM Increment 2 to the warfighter.” He added: “We’re ready to move from flight testing into production and provide the Army with an expanded long-range precision fires capability.”
Lockheed Martin will now begin producing initial Increment 2 missiles while continuing flight testing and system maturation, positioning itself for larger Army procurements ahead.
Learn more on Lockheed Martin’s website
