# U.S. Army Lockheed Martin PrSM contract > Live situation record from CLSTR: https://clstr.news/situations/us-army-lockheed-martin-prsm-contract > Updated: 2026-09-28T11:51:48.000Z. Sources: 9. Developments: 2. The U.S. Army has awarded Lockheed Martin an indefinite delivery, indefinite quantity contract valued at up to $1.2 billion for the production of Precision Strike Missile (PrSM) Increment 2. This contract marks the transition of the missile system from the development and testing phase into active series production. Designed to replace the Army Tactical Missile System (ATACMS), the PrSM offers an extended range of approximately 500 kilometers compared to the ATACMS range of about 300 kilometers. The system is compatible with existing M142 HIMARS and M270 Multiple Launch Rocket System (MLRS) platforms. A significant feature of the Increment 2 version is its multi-mode seeker head, which allows for the tracking and engagement of both moving land-based and maritime targets. Following successful flight tests in early 2026, Lockheed Martin is expected to expand production capacity to quadruple the output of the PrSM. The IDIQ agreement covers initial production, subsequent orders, and further development work. As the U.S. Army seeks to build sufficient stockpiles for prolonged campaigns, Lockheed Martin anticipates further flight testing milestones in 2027 as the program moves toward full-scale series production. ## Timeline ### 2026-09-28: Lockheed Martin wins $1.2 billion US Army PrSM contract Lockheed Martin won a $1.2 billion US Army contract to produce the Precision Strike Missile (PrSM) Increment 2, featuring enhanced capabilities to target mobile land and maritime threats. 4 sources. https://clstr.news/cluster/lockheed-martin-awarded-12-billion-us-army-contract-for-prsm-missiles ### 2026-09-21: Lockheed Martin awarded $1.2B U.S. Army contract for Precision Strike Missile Lockheed Martin has received a U.S. Army contract worth up to $1.2 billion to produce Precision Strike Missile Increment 2, following successful tests against moving maritime targets. 6 sources. https://clstr.news/cluster/lockheed-martin-awarded-12b-us-army-contract-for-precision-strike-missile --- Cite as: U.S. Army Lockheed Martin PrSM contract. CLSTR, https://clstr.news/situations/us-army-lockheed-martin-prsm-contract