U.S. Army contracts for full-rate production on M109A7 weapon vehicle


ARLINGTON, Va. The U.S. Army has awarded BAE Systems a contract that paves the way for full-rate production of the company’s M109A7 Self-Propelled Howitzer and M992A3 ammunition carrier vehicles. The contract includes an initial $413.7 million portion to complete the third and final option for low-rate initial production on the program; the contract includes additional options that would begin the full-rate production phase, which -- if exercised -- would bring the cumulative value of the award to approximately $1.7 billion.