The following piece, written by Jim Morris, first appeared on Warrior Maven, a Military Content Group member website. 

Lockheed Martin has won a contract valued at up to almost $5 billion to build more Precision Strike Missiles (PrSM) for the US Army.

The deal is known as an indefinite delivery indefinite quantity (IDIQ) contract, a deal that is used when exact quantities needed are unknown but there is a frequent need for the product. The contract will allow the Army to efficiently order more missiles.

For Lockheed, the contract means a significant increase in production.

“Lockheed Martin is committed to delivering this deterrent capability in support of the Army’s vision for a lethal and resilient force,” said Carolyn Orzechowski, Lockheed’s vice president of Precision Fires and Missiles. “Our team remains focused on advancing the production at speed and scale, ensuring the warfighter receives this crucial capability to maintain peace through strength.”

The PrSM will replace the Army’s Tactical Missile System (the MGM-140 ATACMS). It’s described as a next-generation, precision-strike missile with a range of more than 499 kilometers (roughly 310 miles). That range became possible when the US withdrew from the Intermediate Range Nuclear Forces Treaty in 2019, accusing Russia of failing to comply with its obligations.