US Army Increases GMLRS Order with Lockheed Martin to Strengthen Inventory After Deliveries to Ukraine.

The U.S. Army has significantly increased the ceiling of its contract for Guided Multiple Launch Rocket Systems (GMLRS), adding $3.4 billion to the existing agreement. This contract, structured as an Indefinite Delivery, Indefinite Quantity (IDIQ) arrangement, is designed to strengthen the inventory of these rockets and associated equipment, according to a statement from Lockheed Martin, the manufacturer of the GMLRS.
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Since 2022, the United States, United Kingdom, and Germany have committed to providing Ukraine with Multiple Launch Rocket Systems (MLRS) equipped with Guided MLRS (GMLRS) rockets (Picture source: Bundeswehr)

An announcement from the Pentagon, dated August 30, 2024, states that work locations and funding allocations will be determined with each order. The contract is set to be executed by October 20, 2027, allowing the Army to place orders based on future needs. Lockheed Martin noted that this contract modification will increase GMLRS production in response to growing demand for these munitions.

In April 2024, the U.S. Army had previously announced plans for a four-year procurement contract to acquire 18,000 GMLRS missiles by the end of the fourth quarter of the fiscal year 2024. At the time, the Department of Defense's comptroller estimated that the multi-year contract would save approximately $68 million, or 2.5%, compared to annual separate purchases. This decision comes as the U.S. seeks to increase munitions production to meet the needs of its allies, particularly Ukraine and Taiwan.

This contract extension follows a decision made in May 2023 when the Biden administration submitted a request to Congress for multi-year procurement authority for GMLRS as part of the fiscal year 2024 budget. The program was part of a series of initiatives aimed at ensuring the continuous production of essential munitions deemed critical to support U.S. allies in international conflicts.

The GMLRS is a precision-strike rocket system, GPS-guided, and capable of operating in all weather conditions. It can be launched from the High Mobility Artillery Rocket System (HIMARS) and the MLRS family of launchers. The system comes in three variants: the GMLRS Unitary and GMLRS Alternative Warhead, both with a range of 70 kilometers, and the GMLRS Extended-Range, capable of striking targets up to 150 kilometers away.

The recent $3.4 billion contract modification aims not only to increase the production of these rockets but also to address the urgent need to replenish stockpiles. These stockpiles have been significantly depleted due to large-scale deliveries to Ukraine, where the U.S. has provided substantial quantities of GMLRS along with HIMARS launch systems. To accelerate the restoration of its inventory, the U.S. Army plans to increase annual GMLRS production from 6,000 to 14,000 units by 2025. Additionally, it is considering producing these systems outside the United States, as evidenced by an agreement with Australia for local production worth $37.4 million.

This contract extension and the efforts to boost production highlight the strategic importance of GMLRS in modern military operations, particularly in hybrid warfare scenarios and support for key allies in conflict zones.