BAE to Make M109A7, M992A3 Vehicle Deliveries Under $579M Army Contract

BAE Systems‘ land and armaments business has secured a $579.3 million contract to manufacture and deliver M109A7 and M992A3 vehicles and fielding kits to the U.S. Army.

The Department of Defense said BAE Systems Land and Armaments will perform work under the cost-no-fee contract at its York, Pennsylvania location and in Sterling Heights, Michigan; Aiken, South Carolina; Elgin, Oklahoma; and Anniston, Alabama.

Work is expected to be completed by Jan. 31, 2029.

At the time of the award, the Army obligated $265.8 million using its fiscal 2023 and 2024 weapons and tracked combat vehicle procurement funds. Army Contracting Command serves as the contracting activity.

M109A7 is the newest vehicle in BAE’s M109 lineup providing indirect fire support for armored brigade combat teams and featuring new chassis, high voltage architecture, engine, transmission, suspension and steering system.

In January, the company was awarded a $418 million Army contract for the additional self-propelled howitzers and carrier ammunition-tracked vehicles.

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