Ethan Hannigan 
- The IDIQ contract covers the Early Operational Capability phase of the program
- Work locations and funding will be determined on an order-by-order basis
- The contract runs through September 2031
Lockheed Martin has received a $1.21 billion contract from the U.S. Army for the Precision Strike Missile Increment 2 Early Operational Capability.
What Are the Army Contract Terms?
The award is structured as a cost-plus-fixed-fee, firm-fixed-price indefinite-delivery/indefinite-quantity contract, the Department of War said. One bid was solicited, and one was received. Work locations and funding will be determined with each order, with an estimated completion date of Sep. 13, 2031.
Army Contracting Command at Redstone Arsenal, Alabama, is the contracting activity. Lockheed Martin’s Grand Prairie, Texas, facility is the awardee of record.
What Is Lockheed Martin’s Precision Strike Missile?
PrSM is a next-generation, long-range precision-strike missile designed for the Army, built to attack, neutralize, suppress and destroy targets using missile-delivered indirect fires at ranges of 60 to 499-plus kilometers. The surface-to-surface weapon system accommodates two rounds per launch pod and is compatible with the MLRS M270 and HIMARS family of launchers.
The system features an open systems architecture designed for affordability and flexibility, with a modular design intended to support future capability upgrades and longer ranges. PrSM provides the Joint Force Commander with increased range, lethality, survivability and missile loadout in support of combined Joint All-Domain Operations.
What Has PrSM Increment 2 Achieved in Testing?
In March 2026, Lockheed Martin completed the first flight test of PrSM Increment 2, demonstrating a new multi-mode seeker and the missile’s ability to engage moving maritime targets. The test covered a 350-kilometer flight launched from a HIMARS, with the missile deploying protective covers and collecting performance data for system validation.
The Increment 2 configuration adds maritime-strike capability to the baseline missile’s land-attack mission, enabling the Army to engage relocating or time-sensitive targets in both land and maritime environments. The system is compatible with existing HIMARS and M270A2 launchers, and the Preliminary Design Review is now underway. Additional flight tests are scheduled for late 2026.
