Army Awarded $1.2 Billion Missile Contract

The U.S. Army selected Lockheed Martin for the production of the Precision Strike Missile Increment 2.

Updated on Sept. 21, 2026 in Military

Bold flat-color editorial illustration of a tactical missile on a cradle, representing the U.S. Army's new multi-billion dollar strike capability contract. — The U.S. Army has awarded a $1.2 billion contract to Lockheed Martin for the production of its Precision Strike Missile Increment 2. AI Illustration. Upload story photo >

Live Poll

Should the federal government increase spending on long-range missile and defense systems?

The U.S. Army has awarded a contract worth up to $1.2 billion to Lockheed Martin Missiles and Fire Control. The agreement supports the ongoing modernization of the force by providing advanced precision strike capabilities.

Why it matters

This contract provides the military with enhanced options for delivering precision fire effects against critical targets. It marks a significant investment in long-range strike technology to maintain force modernization.

The U.S. Army awarded an indefinite-delivery, indefinite-quantity contract for the Precision Strike Missile Increment 2, which utilizes multi-mode seeker technologies. The total value of the deal is capped at $1.2 billion.

The players

U.S. Army

The U.S. Army is the primary land warfare service branch of the United States Armed Forces responsible for long-range precision fires.

Lockheed Martin

Lockheed Martin is a global aerospace and defense technology company that specializes in the research, design, and manufacturing of advanced military weapon systems.

Army Contracting Command-Redstone Arsenal

Based in Alabama, this command oversees the procurement of complex weapons systems and logistical services for U.S. Army operations.

The details

Developed at Lockheed Martin facilities in Grand Prairie, Texas, the missile was validated during a flight campaign in Fiscal Year 2026. The testing successfully confirmed the weapon's performance against both moving maritime assets and relocatable land targets.

A successful missile flight campaign occurred during Fiscal Year 2026.

Political Context

Opponents of increased military spending often argue that such high-value contracts should be subjected to stricter fiscal oversight or redirected toward domestic infrastructure needs. This deal will likely face scrutiny from budget hawks who question the sustainability of long-term military procurement funding.

This defense contract represents a major allocation of federal taxpayer funds toward military modernization efforts. While it does not change immediate tax brackets, it reflects the ongoing federal priority of investing in national defense technologies.

The takeaway

The U.S. military continues to shift its procurement focus toward missiles capable of tracking mobile maritime and land targets. This development underscores the importance of multi-mode seeker technology in modern tactical engagement strategies.