Army increases GMLRS contract ceiling by $3.4B

The Army has increased the ceiling of an indefinite delivery, indefinite quantity contract for the Guided Multiple Launch Rocket System by $3.4 billion, according to manufacturer Lockheed Martin.

An Aug. 30 Pentagon contract notice states “work locations and funding will be determined with each order” and the estimated completion date is Oct. 20, 2027.

The ceiling modification will “allow the increase of inventory of GMLRS rockets and associated equipment,” according to a Lockheed statement provided to Inside Defense today. Quantities awarded will be based on future demand.

“The congressional announcement is a modification to the Indefinite-Delivery Indefinite-Quantity (IDIQ) production contract which increases the IDIQ ceiling value by $3.4 billion to support future GMLRS awards,” the company stated.

In April, the Army announced plans to award a four-year, multiyear procurement contract to buy 18,000 GMLRS missiles by the fourth quarter of fiscal year 2024. The Defense Department comptroller estimated the service would save nearly $68 million, or $2.5%, “when compared to four annual awards,” Inside Defense reported at the time.

In May 2023 the Biden administration formally submitted its request to Congress to include multiyear procurement authority for GMLRS in the FY-24 budget request, as part of a series of requests for multiyear buys of munitions deemed critical to support Ukraine and Taiwan.