BAE Systems has been awarded a $413,7-million contract by the US Army to execute the third and final option for low-rate initial production of the company’s M109A7 Self-Propelled Howitzer and M992A3 ammunition carrier vehicles. Options are also included that would begin the full-rate production phase, which, if exercised, would bring the cumulative value of the award to approximately $1.7 billion. 

BAE Systems will initially produce 48 vehicle sets, with the options calling for 60 sets per year for approximately three years of deliveries thereafter during full-rate production. Developed based on the M109A6 Paladin Self-Propelled Howitzer, M109A7 consists of a new chassis design for improved performance, upgraded survivability, and components common to other Army vehicles.