# U.S. Army Awards Lockheed $1.2B PrSM Increment 2 Contract

The U.S. Army awarded Lockheed Martin a **$1.2 billion** contract in September 2026 for the production and early operational capability of the Precision Strike Missile (PrSM) Increment 2 system. This contract features enhanced maritime strike capabilities with a multi-mode seeker designed to engage moving maritime targets at ranges exceeding 500 kilometers. The indefinite-delivery/indefinite-quantity (IDIQ) contract includes cost-plus-fixed-fee and firm-fixed-price components, with work expected to continue through September 2031. The award supports the Army's efforts to replenish and modernize its long-range precision fires inventory amid ongoing operational demands and follows successful flight tests and combat use of earlier PrSM versions.

- **Key agencies involved:** U.S. Army, Army Contracting Command at Redstone Arsenal, and the Department of Defense
- **Prime contractor:** Lockheed Martin, responsible for missile production and system development
- **Locations of work:** Includes Redstone Arsenal (Alabama), Camden (Arkansas), Grand Prairie and New Boston (Texas)
- **Why this matters:** This contract represents a significant long-term opportunity for defense contractors specializing in missile technology, precision fires, and maritime strike capabilities
- **Actionable insights:** Contractors should evaluate capabilities aligned with multi-mode seeker technology and long-range missile production to position for subcontracting or future increments; procurement professionals should anticipate ongoing requirements for sustainment and modernization of precision strike systems through 2031

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** September 16, 2026

### Government Entities
- U.S. Army (Army)
- Pentagon
- Department of Defense (DoD)
- Office of the Under Secretary for Acquisition and Sustainment
- Army Contracting Command

### Vendors
- Lockheed Martin (prime contractor)

### Sources
- [Lockheed Nabs $1.2 Billion Army Production Contract For Seeker-Enabled PrSM Inc. 2 - Defense Daily](https://www.defensedaily.com/lockheed-nabs-1-2-billion-army-production-contract-for-seeker-enabled-prsm-inc-2/army) - Defense Daily
- [How convenient. $LMT absolutely long and long.
They are prepping some green candles on HTF.

https://t.co/MD2PDLy8tl

Sep 14, 2026, 19:10 GMT-4

Lockheed Martin got a $1.21 billion award to help build missiles for the Army

The contract is a cost-plus-fixed-fee, firm-fixed-price,](https://x.com/ot_tyler/status/2099641177033392418) - twitter-defense
- [Army inks $1.2B contract with Lockheed for Precision Strike Missile that can hit ships and other moving targets | DefenseScoop](https://defensescoop.com/2026/09/15/army-contract-lockheed-martin-precision-strike-missile-increment-2) - DefenseScoop