Lockheed Martin to Quadruple PrSM Output under $4.94B Framework, Potential Seven-Year Deal
Lockheed Martin secured a framework agreement with the Department of War to quadruple Precision Strike Missile production capacity, building on a $4.94 billion U.S. Army contract and enabling a seven-year deal pending congressional approval. PrSM made its combat debut on March 4, demonstrating extended-range deep-strike capability and validating production scale-up.
1. Framework Agreement and Contract Value
Lockheed Martin and the Department of War agreed to quadruple Precision Strike Missile production capacity under a new framework, building on a $4.94 billion U.S. Army award. The deal includes negotiation rights for a seven-year contract, contingent on future congressional authorization.
2. Combat Debut Validates Capability
On March 4, U.S. Central Command deployed PrSM in combat during Operation Epic Fury, marking its operational debut and showcasing extended-range deep-strike performance. This milestone follows Milestone C approval in July 2025, clearing the path for full-rate production.
3. Manufacturing Expansion and Job Growth
Lockheed has allocated over 115,000 sq ft of U.S. operations space and employs 400 staff on the PrSM program, supported by more than $7 billion invested in munitions capacity since early 2020s. Continued workforce expansion is planned to meet the accelerated production ramp-up.