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U.S. Army Moves PrSM Increment 2 Into Initial Production Under $1.2B IDIQ

The award lets Lockheed begin production of a seeker-equipped PrSM that can track moving land and sea targets.

Overview

  • The Department of Defense gave Lockheed Martin an indefinite-delivery, indefinite-quantity contract with a ceiling of $1.2 billion to procure and mature Precision Strike Missile Increment 2 for the Army.
  • Increment 2 adds a multimode seeker designed to let ground-launched PrSMs engage moving land targets and ships, expanding the missile’s mission set beyond fixed-target strikes.
  • Flight tests earlier this year validated key functions including launch from HIMARS, deployment of protective covers, and moving-target engagement, and additional tests are scheduled for 2027 while initial production begins.
  • Lockheed plans to expand U.S. production capacity, with a stated goal of roughly quadrupling output, a step aimed at replenishing stocks that were heavily used in recent combat operations.
  • PrSM is the planned replacement for ATACMS and offers greater magazine depth and extended reach for HIMARS and M270 launchers, fitting the Army’s push for longer-range, mobile precision fires in regions such as the Indo-Pacific.