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BAE secures US$339m US Army armoured vehicle, munitions contract

The US Army has awarded BAE Systems a US$339 million ($556 million) contract modification for the production of 48 vehicle sets of M109A7 self-propelled howitzer (SPH) and its companion, the M992A3 Carrier, Ammunition, Tracked (CAT) vehicle, and includes post-delivery support and spare parts.

The US Army has awarded BAE Systems a US$339 million ($556 million) contract modification for the production of 48 vehicle sets of M109A7 self-propelled howitzer (SPH) and its companion, the M992A3 Carrier, Ammunition, Tracked (CAT) vehicle, and includes post-delivery support and spare parts.

The M109A7 SPH and M992A3 CAT vehicle set is a vital program enhancement for increased combat capability and sustainment of the Army’s Armoured Brigade Combat Teams (ABCTs).

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The program offers enhanced indirect-fire artillery capabilities to the ABCTs with new technologies for power generation and survivability.

The new M109A7 addresses long-term readiness and modernisation needs of the M109 self-propelled howitzer family through a critical redesign and production plan that leverages today’s most advanced technology.

Its state-of-the-art “digital backbone” and power generation capability provides a more robust, survivable, and responsive indirect fire support capability for ABCT soldiers. The M109A7 is a significant upgrade over the M109A6 as it enhances reliability, maintainability, performance, responsiveness, lethality and crew survivability.

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The initial contract was awarded in 2017 for low-rate production. This most recent order brings the total number of M109A7 and M992A3 vehicle sets to 204, with a total contract value of US$1.5 billion ($2.46 billion).

The award follows the Army’s decision, announced in February, to commence full-rate production of the vehicle. This contract worth US$249 million ($408 million) exercises options on an existing low-rate production contract and includes the completion of an additional 60 M992A3 CAT vehicles to accompany the M109A7. 

Jeremy Tondreault, vice president and general manager of BAE Systems combat vehicles said at the time, "We are excited about the opportunity to continue bringing new howitzers and increased survivability to our soldiers. The M109A7 positions the Army to execute its current mission with confidence and support its future needs and requirements as long range precision fires evolve."

 

Work on the M109A7 will take place at several facilities within the company’s combat vehicles manufacturing network including: Aiken, South Carolina; Elgin, Oklahoma; Sterling Heights, Michigan; and, York, Pennsylvania.

BAE secures US$339m US Army armoured vehicle, munitions contract
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