BAE gets $274M contract for Paladin howitzers

BAE Systems will build additional self-propelled howitzers for the Army after receiving a $274.4 million contract, the Defense Department announced Wednesday.

The Pennsylvania-based company will produce the M109A7 Paladin self-propelled howitzers and M992A3 ammunition carrier vehicles by an estimated completion date of Jul. 31, 2026, with work being completed in York, PA, according to the July 31 announcement.

“Fiscal [year] 2023 procurement of weapons and tracked combat vehicles, Army funds in the amount of $274,426,742 were obligated at the time of the award,” the announcement adds.

Each Paladin is paired with the M992A3 Carrier Ammunition Tracked vehicle, which stores and transports the artillery rounds.

Wednesday’s announcement follows a $579 million July 3 contract in which BAE would produce the M109A7 and M992A3 at their facilities in York, PA; Sterling Heights, MI; Aiken, SC; Elgin, OK; and Anniston, AL.

For FY-25, the Army plans to procure 20 Paladin systems for $417 million and 155 systems for $2.7 billion by FY-29, according to service budget documents.

The Army initially intended to replace a portion of the Paladins with the Extended-Range Cannon Artillery (ERCA) howitzer a modified M109 with a longer gun tube but cancelled the program in March after prototyping revealed technical issues.

Following the ERCA cancellation, the Army opted to use the remaining funds to assess existing howitzers and plans to hold capability demonstrations with industry manufacturers beginning in August 2024 at the Yuma Proving Ground in Yuma, AZ.

During a May 2 round table with reporters, Army acquisition chief Doug Bush said “around eight or nine” contractors are “interested in some form or fashion” in participating in the capability demonstrations.