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BAE Systems Receives $418M Contract for Self-Propelled Howitzers

The M109A7’s new design includes a new chassis, engine, transmission, suspension and steering system.

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BAE Systems

BAE Systems has received a $418 million contract from the U.S. Army to produce and deliver additional sets of M109A7 Self-Propelled Howitzers and their companion, the M992A3 ammunition carriers. The contract, which was awarded in November 2023, extends the period of performance with vehicle deliveries through 2025.

The M109A7 is the latest howitzer in the BAE Systems M109 family of vehicles and the primary indirect fire support system for the Army’s Armored Brigade Combat Teams (ABCT). The vehicle is equipped with modernized capabilities in size, weight, power, cooling, readiness, force protection, and survivability, which together provide Army commanders with a more capable and sustainable vehicle on the battlefield.

“This contract furthers our commitment to helping the U.S. Army meet its mission needs,” said Dan Furber, director of ground vehicle production for BAE Systems’ Combat Mission Systems business. “The battlefield is constantly changing, but the ABCT can feel assured in the indirect fire support capability this vehicle provides.”

The M109A7’s new design includes a new chassis, engine, transmission, suspension, steering system, a new high voltage architecture, and improved survivability. The M109A7 program’s improved commonality across the ABCT eases the logistics burden and reduces operational sustainability costs. The vehicle is also engineered to support higher- caliber extended-range cannon assemblies critical to achieving the Army’s extended range lethality goals.

BAE Systems received the initial contract for M109A7 production in 2017. This most recent order brings the total contract value to $2.5 billion.

M109A7 and M992A3 production and support takes place at the Anniston Army Depot in Alabama and BAE Systems facilities in York, Pennsylvania; Minneapolis, Minnesota; Sterling Heights, Michigan; Endicott, New York; Elgin, Oklahoma; and Aiken, South Carolina.

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