BAE Systems has been awarded a $493m contract to manufacture extra M109A7 Self-Propelled Howitzers and M992A3 Ammunition Carriers for the US Army. Source: BAE Systems

BAE Systems has been awarded a $493m contract to produce more M109A7 Self-Propelled Howitzers (SPH) and M992A3 Ammunition Carriers.

The contract, announced on August 2, 2024, ensures continued production and delivery of these systems through July 2026.

In 2024, BAE Systems has continued to enhance US Army artillery capabilities through multiple contracts. The company has secured a total of $1.3bn in orders, reflecting a commitment to the M109A7 Paladin and M992A3 Ammunition Carrier programmes. This includes a $418 m order from January and a recent $579.3m contract for additional production. The M109A7, an advanced version of the M109A6, offers fire support.

This latest contract is part of a strategy by the US Army to equip its Armored Brigade Combat Teams (ABCT) with technology. The M109A7 SPH, which has been in full-rate production since 2020, represents a component of this strategy, providing firepower on the battlefield.

Dan Furber, director of ground vehicle production for BAE Systems’ Combat Mission Systems business, emphasized the importance of the M109A7 in maintaining the Army’s artillery dominance. “We are focused on producing and fielding modern artillery capabilities that provide the Army with overmatch in range, accuracy, and lethality,” Furber stated, highlighting the system’s key role in the military’s future operations.

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With its commonality across the ABCT formation, the M109A7 offers a low-risk option for future upgrades. It eases logistical burdens and reduces maintenance costs, which is an advantage in prolonged engagements.

Additionally, the contract signifies the growing importance of maintaining interoperability with allied nations. As many US allies continue to operate American military systems, the M109A7’s design ensures integration, enhancing joint operations and coalition warfare capabilities. This interoperability will likely play a role in future multinational military operations, further justifying the investment in these systems.

The company has expanded its efforts to multiple sites across the United States, including Alabama, Michigan, Minnesota, New York, Oklahoma, Pennsylvania, and South Carolina facilities.

With this latest contract, the total value of the M109A7 programme is nearly $3bn. According to GlobalData’s intelligence on the US defence market, the US Army has 247 of the M109A7 self-propelled artillery system and the supporting M992A3 vehicle.