Overview
- The Pentagon announced on Sept. 14 that it awarded Lockheed Martin an indefinite delivery/indefinite quantity contract worth up to $1.2 billion to begin production of Precision Strike Missile Increment 2.
- Increment 2 adds a multimode seeker validated in flight tests and has demonstrated the ability to engage moving maritime targets during recent launches.
- Lockheed will start producing initial rounds while continuing system maturation and additional flight tests scheduled for 2027.
- Budget documents say the missile will let HIMARS and M270 launchers strike vessels at ranges up to roughly 248 miles, and the IDIQ covers follow-on buys and further development through an expected September 2031 completion.
- The shift to production follows wartime use that strained stocks and an earlier $13.3 billion expansion of Increment 1, and it signals a push to grow industrial capacity and field more ground-based anti-ship options for operations in the Indo-Pacific.