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

The U.S. Army awarded Lockheed Martin a **$1.2 billion** indefinite-delivery, indefinite-quantity (IDIQ) contract on September 21, 2026, for the production and continued development of the Precision Strike Missile (PrSM) Increment 2. This contract marks the transition of PrSM Increment 2 from testing to production, supporting the Army's modernization efforts to enhance long-range precision fires capabilities, including targeting moving land and maritime targets. Lockheed Martin plans to significantly expand production capacity, quadrupling output to meet anticipated demand, with additional flight tests scheduled through 2027 to validate system performance and modular payload upgrades.

- **Why this matters:** This contract represents a major investment in next-generation missile technology compatible with HIMARS and M270 launchers, signaling increased procurement opportunities for defense contractors specializing in precision fires.
- Lockheed Martin's expanded production footprint across multiple U.S. locations, including Texas, Alabama, Maryland, and New Mexico, indicates potential subcontracting and supply chain engagements.
- Procurement professionals should note the IDIQ structure allows for flexible ordering over the contract period, enabling the Army to scale purchases based on evolving operational requirements.
- Industry stakeholders can anticipate ongoing development and testing phases through 2027, presenting opportunities for technology integration and support services aligned with missile system enhancements.

**Jurisdictions:** federal
**Industries:** Defense & Military
**Topics:** Contracting Vehicles
**Published:** September 22, 2026

### Government Entities
- U.S. Army (Army)
- Department of Defense (DoD)
- U.S. Central Command (CENTCOM)

### Vendors
- Lockheed Martin (prime contractor)
- Lockheed Martin Missiles and Fire Control (prime contractor)

### Key Quotes
> Were ready to move from flight testing into production and provide the Army with an expanded long-range precision fires capability.
> — Dave Griser, Vice President for Precision Fires, Lockheed Martin

### Sources
- [Lockheed Martin secures $1.2B IDIQ contract from U.S. Army - TipRanks.com](https://www.tipranks.com/news/the-fly/lockheed-martin-secures-1-2b-idiq-contract-from-u-s-army-thefly-news) - TipRanks
- [Lockheed Martin Wins Up to $1.2B Army Missile Contract | LMT Stock News](https://www.stocktitan.net/news/LMT/lockheed-martin-secures-1-2b-contract-for-precision-strike-missile-xgxni72pbwom.html) - Stock Titan
- [PrSM Increment 2 is advancing. 🚀
Its recent flight test demonstrated a launch from HIMARS, and the missile’s capability to engage targets a sea. The @USArmy has also awarded @LockheedMartin a $1.2B IDIQ contract to begin production. More: https://t.co/Bonutjtxlx https://t.co/1xJ](https://x.com/LMEuropeNews/status/2102389463112360060) - twitter-contract-vehicles