The follow-on award represents the first of three production year options under a contract BAE won in October 2013 through the Army’s Paladin artillery system modernization, the company said Monday.
Production takes place at Anniston Army Depot in Alabama and at a BAE manufacturing facility in York, Pennsylvania.
The Army seeks to procure as many as 66.5 Paladin vehicle sets and is due to receive the first howitzer batch in early 2015.
Paladin M109A7 howitzers are designed with the same chassis, engine, transmission suspension and steering systems as the Bradley infantry fighting vehicle.
The platform also includes a digital backbone architecture and a 600-volt onboard power system, according to BAE.