Officials from the United States Army’s Program Executive Office Missiles and Space (PEO MS) and Army Contracting Command (ACC)– Redstone Arsenal executed an Undefinitized contract award for Guided Multiple Launch Rocket System (GMLRS) rocket production. The contract awarded to Lockheed Martin Missiles and Fire Control is worth $4.1 billion and will procure GMLRS, Extended-Range (ER) GMLRS missiles, and associated hardware.

“The award is intended to be definitized as part of a three-year multiyear contract demonstrating the Army’s commitment to accelerating and stabilizing production capability for this critical weapon system, which continues to support the US Army and Joint Force, along with Ukraine and other allies around the world” said Douglas Bush, the Army’s Assistant Secretary for Acquisition, Logistics and Technology.

“Multiyear contracts are mutually beneficial to the United States Government and our industry partners,” said Maj. Gen. Frank Lozano, Program Executive Officer Missiles and Space. “They strive to lower procurement costs by allowing bulk purchasing and reducing administrative strain and costs associated with annual contract renewals, while also providing our suppliers with a stable demand forecast, encouraging investment in production capacity and capability improvements.”

A multiyear procurement contract is used by the US Department of Defense (DoD) to purchase goods or services over multiple years. This type of contract allows the DoD to commit to longer-term relationships with suppliers, typically spanning up to five years. Unlike annual contracts, multiyear contracts obligate the government to procure goods or services over a period of years, subject to the availability of funds. They provide stability and predictability for both the DoD and suppliers, facilitating better planning and resource allocation. The GMLRS is in high demand, providing surface-to-surface precision strike capability to US and allied forces.

This contract award is an initial step to increasing production and incentivizing innovation, while reaping the cost savings benefits of economic order quantities and long-term supply chain reliability.

The contract award is led by PEO MS and executed in partnership with ACC-Redstone Arsenal.