BAE Systems awarded contract worth $418 million by US Army

BAE Systems has received a $418 million contract from the U.S. Army to produce and deliver additional sets of M109A7 Self-Propelled Howitzers and M992A3 ammunition carriers.

The contract, which was signed in November 2023, extends the period of performance with vehicle deliveries through 2025.

The M109A7 is the latest howitzer in the BAE Systems M109 family of vehicles and the primary indirect fire support system for the Army’s Armored Brigade Combat Teams (ABCT).

According to the company, the vehicle is equipped with modernized capabilities in size, weight, power, cooling, readiness, force protection, and survivability, which together provide Army commanders with a ‘more’ capable and sustainable vehicle on the battlefield.

“This contract furthers our commitment to helping the U.S. Army meet its mission needs,” said Dan Furber, director of ground vehicle production for BAE Systems’ Combat Mission Systems business. “The battlefield is constantly changing, but the ABCT can feel assured in the indirect fire support capability this vehicle provides.”

BAE Systems received the initial contract for M109A7 production in 2017. This most recent order brings the total contract value to $2.5 billion.

M109A7 and M992A3 production and support takes place at the Anniston Army Depot in Alabama and BAE Systems facilities in York, Pennsylvania; Minneapolis, Minnesota; Sterling Heights, Michigan; Endicott, New York; Elgin, Oklahoma; and Aiken, South Carolina.

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