U.S. Army awards $339 million contract for M109A7 Self-Propelled Howitzers and M992A3 carrier, ammunition, tracked vehicles

March 24, 2020 The U.S. Army has awarded BAE Systems a $339 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 Armored Brigade Combat Teams (ABCTs). 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 modernization 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.

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 $1.5 billion. The award follows the Army's decision, announced in February, to commence full-rate production of the vehicle.

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