Lockheed Martin has secured a $4.9 billion contract from the U.S. Army to produce its next-generation Precision Strike Missiles (PrSM) under Increment One of the program, the Department of Defense announced.
According to a contract notice released by the Army Contracting Command at Redstone Arsenal, Alabama, the firm-fixed-price agreement was awarded to Lockheed Martin Corp., Grand Prairie, Texas. The contract—totaling $4,937,045,400—was the result of a competitive solicitation, with one bid received.
The PrSM program is a cornerstone of the Army’s long-range precision fires modernization effort, intended to replace the aging Army Tactical Missile System (ATACMS). The missile is designed for ground launch from the M270 Multiple Launch Rocket System (MLRS) and the M142 High Mobility Artillery Rocket System (HIMARS).
The U.S. Army is prioritizing this capability to enable deep strike against high-value targets, including command-and-control nodes, air defense assets, and logistical hubs. With a range exceeding 400 kilometers, PrSM Increment One is focused on initial capabilities, including enhanced accuracy and responsiveness.
The award follows a series of successful tests, during which the PrSM demonstrated its ability to strike fixed targets at extended ranges with high precision. Additional capabilities—including seekers for moving targets and multi-mode guidance—are expected in future increments.
Work locations and funding allocations will be determined with each delivery order, with the estimated completion date set for March 30, 2030.
In a previous statement, Army officials underscored the urgency of fielding PrSM to maintain an advantage in long-range strike capability, especially in contested environments. The U.S. Army’s focus on deep-fire systems reflects evolving battlefield dynamics and the need to counter adversaries with advanced area-denial systems.