US Army Expands Long-Range Firepower with $4.94 Billion Lockheed Martin Precision Strike Missile Production Contract.

On March 31, 2025, the American Defense Company Lockheed Martin announced it has been awarded a major Indefinite Delivery Indefinite Quantity (IDIQ) contract by the U.S. Army, valued at up to $4.94 billion, for the continued production of the Precision Strike Missile (PrSM). This strategic agreement marks a significant step in the U.S. Army’s modernization efforts, aimed at dramatically enhancing its long-range precision fires capabilities in response to evolving global threats.
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A U.S. Army M142 HIMARS launches a Precision Strike Missile (PrSM) during a live-fire test, showcasing the system’s extended-range precision strike capability and enhanced firepower. (Picture source: U.S. DoD)

The IDIQ (Indefinite Delivery Indefinite Quantity) contract format allows the U.S. Army to order PrSM (Precision Strike Missile) units as operational needs arise, giving the service critical procurement flexibility and scalability to match growing demand. It ensures the Army can ramp up production efficiently, maintaining a high state of readiness and enabling rapid deployment of this next-generation capability to frontline units. “Our team remains focused on advancing the production at speed and scale, ensuring the warfighter receives this critical capability to maintain peace through strength,” said Carolyn Orzechowski, Vice President of Precision Fires Launchers and Missiles at Lockheed Martin.

This announcement comes on the heels of a successful flight test that underscored the missile's maturity and battlefield potential. On March 24, 2025, Lockheed Martin and the U.S. Army jointly conducted a major PrSM flight test at Vandenberg Space Force Base, California. The test marked another milestone in the missile’s development, demonstrating its precision strike performance and reinforcing its role in enhancing U.S. Army air dominance. Lockheed Martin stated that the trial further proved PrSM's readiness to provide a decisive edge in the battlespace, delivering rapid, accurate, and long-range firepower.

The PrSM is the U.S. Army’s next-generation long-range surface-to-surface missile designed to replace the MGM-140 ATACMS (Army Tactical Missile System). As a core component of the U.S. Army’s Precision Fires modernization program, PrSM brings dramatic improvements in range, lethality, and flexibility. Capable of engaging targets beyond 400 kilometers—compared to the ATACMS' 300-kilometer limit—the missile enables deep-strike options that were previously out of reach. This range extension allows U.S. forces to neutralize high-value enemy targets such as integrated air defense systems, command centers, and logistics hubs, all while operating from safe standoff distances.

In terms of platform compatibility, PrSM is fully integrated with the U.S. Army’s existing M270 Multiple Launch Rocket System (MLRS) and M142 HIMARS (High Mobility Artillery Rocket System). Unlike the single-missile configuration of the ATACMS, the PrSM’s streamlined design allows two missiles to be loaded per pod, effectively doubling the firepower per launcher. This not only enhances tactical responsiveness during high-tempo operations but also improves cost-efficiency and battlefield logistics.

From a technical standpoint, the PrSM incorporates a state-of-the-art propulsion system, advanced inertial guidance with GPS support, and a modular open systems architecture. This design allows for future upgrades, including multi-mode seekers, enhanced lethality payloads, and the potential for terrain-following or maneuvering flight paths. Compared to legacy Guided Multiple Launch Rocket System (GMLRS) munitions, PrSM offers greater range and more impactful payload delivery while maintaining superior precision. These enhancements provide battlefield commanders with a versatile deep-strike tool capable of suppressing enemy air defenses (SEAD), supporting joint fires, and conducting interdiction missions in contested environments.

In addition to hardware advancements, Lockheed Martin has embraced digital transformation in the PrSM program by leveraging cutting-edge tools such as augmented reality, the ARISE™ modeling and simulation suite, predictive data analytics, and an integrated software factory. These innovations drive efficiency, improve production quality, and enable rapid scaling of missile output to meet the U.S. Army’s operational timelines.

The $4.94 billion PrSM production contract not only affirms Lockheed Martin’s leadership in precision-strike technologies but also reinforces the U.S. Army’s strategic commitment to long-range fires dominance. With its extended reach, modular architecture, dual-pod configuration, and proven performance in recent tests, the Precision Strike Missile stands as a game-changing capability for the U.S. Army, ensuring its forces remain equipped to defeat current and future threats across any combat theater.