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US Army Awards BAE Additional $493M M109A7 Howitzer Contract

BAE Systems has been awarded a $493-million contract to continue producing the M109A7 self-propelled howitzer and M992A3 ammunition carrier for the US Army.

It includes production and delivery between August 2025 and July 2026, ensuring sustained supply to the US Army’s Armored Brigade Combat Teams (ABCT).

“We are focused on producing and fielding modern artillery capabilities that provide the Army with overmatch in range, accuracy, and lethality,” director of ground vehicle production for BAE Systems’ Combat Mission Systems business Dan Furber said.

“This contract ensures the ABCT will sustain operations of one of the most survivable indirect fire support systems for years to come.”

The M109A7 entered full rate production in 2020. Since then, $3 billion in contracts have been awarded by the US Army for the howitzer.

The M109A7

The latest in the M109 family of vehicles, the M109A7 is an upgrade on the combat-proven M109A6 Paladin.

It features the M109A6’s main armament and cab structure, and “replaces the vehicle’s chassis components with modem components common to the Bradley vehicle,” according to BAE.

“The improved chassis structure provides greater survivability and commonality with the existing systems in the ABCT, reducing operational sustainability costs by replacing obsolete components,” the company writes on its website.

Additionally, it leverages advanced technologies such as a “digital backbone” and power generation capability, providing a stronger and more survivable indirect fire support capability to the ABCTs.

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