BAE Systems receives $493M Army contract

Falls Church-based BAE Systems Inc. has received a $493 million U.S. Army contract to produce M109A7 self-propelled howitzers and M992A3 ammunition carriers, the U.S. arm of British defense giant BAE Systems plc announced Aug. 2.

The contract’s production and deliveries are scheduled between August 2025 and July 2026.

The M109A7 will be used by the Army’s Armored Brigade Combat Team, the Army’s primary armored force.

BAE Systems Inc. received the initial contract from the U.S. Army for $413.7 million to produced 48 vehicle sets  in 2017. By 2022, the federal contractor reported having produced 310 sets of M109A7 self-propelled howitzers and companion M992A3 ammunition carriers to the U.S. Army for $1.9 billion. Friday’s update brings the total contract value to almost $3 billion, according to a BAE Systems news release.

“We are focused on producing and fielding modern artillery capabilities that provide the Army with overmatch in range, accuracy and lethality,” said Dan Furber, director of ground vehicle production for BAE Systems’ Combat Mission Systems business, stated in the news release. “This contract ensures the ABCT will sustain operations of one of the most survivable indirect fire support systems for years to come.”

BAE Systems recently expanded production and support efforts for M109A7 and M992A3 at a facility in Anniston, Alabama. Facilities in Pennsylvania, Minnesota, Michigan, New York; Elgin, Oklahoma and South Carolina will also participate in production, according to a news release.