Lockheed Martin yesterday announced an indefinite delivery, indefinite quantity (IDIQ) U.S. Army contract worth up to $1.2 billion to produce Increment 2 of the Precision Strike Missile (PrSM) after a second flight test demonstrated the missile's ability to engage moving maritime targets.
The IDIQ covers initial procurement and future orders of PrSM Increment 2 missiles, follow-on production and continued development. Work will be performed at Lockheed Martin facilities and across the company's U.S. industrial base.
The award moves the missiles from development and flight testing into production, advancing the Army's long-range precision fires capability. Increment 2 also adds a multimode seeker designed to enable the missile to engage moving land and maritime targets, expanding the Army's long-range strike options.
PrSM Increment 2 completed its first flight test in March and its second flight test in August—obtaining critical data during flight, launching from a high mobility artillery rocket system (HIMARS, deploying protective covers and engaging the target. Additional flight tests are scheduled for 2027.
Lockheed is currently expanding capacity to quadruple PrSM production.
Lockheed has partnered with the Pentagon to use commercial-style contracts for PAC-3 MSE, THAAD and PrSM. The company said it is investing between $8 billion and $9 billion to scale munitions production, with new buildings, expansions and jobs at more than 20 sites across America.
It expects production and warehousing space for munitions production to increase almost 50% after planned expansions.
The defense contractor has even begun receiving components made by General Motors for the PAC-3 Missile Segment Enhancement (MSE) interceptor missile.
The Pentagon has tasked U.S. defense contractors with speeding up weapons production and delivery schedules to replenish munitions stockpiles depleted in recent conflicts.
