Kristen Smith 
- Lockheed Martin has secured an $8.4 billion contract modification from the Army to expand production of the Precision Strike Missile
- PrSM is the Army’s next-generation long-range strike capability, able to engage targets beyond 500 kilometers from HIMARS and MLRS platforms
- Lockheed has said it plans to invest $8 billion to $9 billion through 2030 to grow missile production across more than 20 U.S. facilities
Lockheed Martin has received an $8.4 billion contract modification from the U.S. Army to increase production capacity for the Precision Strike Missile, or PrSM, Increment 1 program and extend procurement activities through fiscal 2032.
The Department of War said Tuesday the modification raises the total cumulative value of the contract to approximately $13.34 billion and extends the ordering period to support early operational capability assets, follow-on production, development efforts and obsolescence management.
Work locations and funding will be determined with individual orders placed under the contract, with completion expected by Sept. 30, 2032.
The base contract, worth $4.94 billion, was awarded to Lockheed in March 2025.
What Is the Army’s Precision Strike Missile Program?
PrSM is the Army’s next-generation long-range precision strike capability designed to engage targets at ranges exceeding 500 kilometers. The surface-to-surface missile can be launched from the M142 High Mobility Artillery Rocket System and M270 Multiple Launch Rocket System platforms and features an open-systems architecture designed to support future upgrades.
Why Is the Army Expanding PrSM Production?
The contract modification aligns with broader Pentagon and Army efforts to expand munitions production capacity and replenish missile inventories.
Daniel Gallagher, deputy to the commanding general of Army Contracting Command, recently told GovCon Wire that the Army is pursuing long-term production agreements for key offensive and defensive missile systems, including PrSM, to increase manufacturing output and strengthen the defense industrial base.
Lockheed Martin has said it plans to invest between $8 billion and $9 billion through 2030 to expand missile production capacity, including upgrades and expansion projects at more than 20 facilities across the United States.
