US Army contracts Lockheed Martin for PrSM missiles worth $1.2 billion

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The U.S. Army awarded Lockheed Martin a $1.2 billion contract for its short-range ballistic missiles.

The indefinite-delivery, indefinite-quantity contract covers initial production and future orders of Increment 2 of the Precision Strike Missile, or PrSM , according to a Lockheed Martin announcement .

“This award marks an important step in delivering PrSM Increment 2 to the warfighter,” Dave Griser, Lockheed Martin vice president for precision fires, said in the announcement. “We’re ready to move from flight testing into production and provide the Army with an expanded long-range precision fires capability.”

PrSM is intended to replace the Army Tactical Missile System, first fielded in the early 1990s. It has a range of about 500 kilometers, versus about 300 kilometers for the ATACMS. PrSM can be launched from the M142 High Mobility Artillery Rocket System and the M270 Multiple Launch Rocket System.

PrSM Increment 2 features a multimode seeker that can lock on to moving targets on land. It can also hit ships moving at sea, giving land-based launchers a maritime strike capability.

Lockheed Martin is currently conducting flight testing of the new PrSM version.

“PrSM Increment 2 completed its first flight test in March and its second flight test in August — obtaining critical data during flight, launching from a HIMARS, deploying protective covers and engaging the target,” the manufacturer said.

More PrSM Increment 2 flight tests are scheduled for 2027.

PrSM recently made its controversial combat debut in the Iran war. Analysts believe a PrSM missile, which sprays a cloud of pellets, killed dozens of civilians in the Iranian city of Lamerd on Feb. 28, the first day of U.S.-Israeli strikes against Iran. U.S. Central Command has denied the accusation.

The U.S. military faces a desperate shortage of strike and air defense missiles after expending vast numbers in Iran. This reportedly includes a lack of PrSM weapons.

The new contract builds on the Department of Defense’s broader investment in ballistic missiles, according to Lockheed Martin.

“Lockheed Martin is expanding capacity to quadruple PrSM production while continuing to develop additional PrSM increments,” the company said.