Lockheed gets contract to build early capability PrSM

The Army has awarded Lockheed Martin a contract to build early capability versions of the Precision Strike Missile, the Defense Department announced Friday.

Lockheed Martin will build the Precision Strike Missile (PrSM) in the Early Operational Capability Lot 3 form for $67.5 million by an estimated completion date of Sept. 30, 2026, with the work being done at the company’s facility in Grand Prairie, TX, the announcement reads.

Friday’s announcement follows a 2022 contract for Lockheed to build the Early Operational Capability Lot 2 form.

The Army expects to conduct operational testing on the PrSM in 2024 with low-rate initial production, full-rate production and initial capability testing scheduled for 2025, according to the Government Accountability Office's 2023 Weapons Systems Annual Assessment.

Slated to replace the Army Tactical Missile System, the PrSM is a ground-to-ground ballistic missile designed to hit targets up to 400km and can be launched from HIMARS and M270 multiple launch vehicles.

According to Defense Department budget documents, the PrSM will cost $1.2 billion, with 110 to be procured in fiscal year 2024 and 190 in FY-25.

Earlier in 2023, the Senate Armed Services Committee urged the Army to procure 400 PrSMs per year while the service has considered issuing multiyear contracts for the system.

In August, the Army confirmed the PrSM program was on track and meeting the expected benchmarks.

Australia and the United Kingdom are also expected to acquire the PrSM.