Under the $299m contract, BAE Systems will be responsible for the production and delivery of the vehicles, including spare parts.
The M109A7, a next-generation artillery system, is an upgraded version of the M109A6 Paladin cannon artillery system.
It provides the US Army’s Armored Brigade Combat Teams (ABCT) with consistent fire support in all weather conditions.
With built-in growth potential for electrical power and weight capacity, the howitzers are suitable to operate in conventional, hybrid, and counterinsurgency combat environments.
The vehicle design features a new chassis, engine, transmission, suspension, and high voltage architecture.
BAE Systems Combat Mission Systems ground vehicles vice-president Scott Davis said: “Providing the most robust, survivable, and responsive indirect fire support capabilities for the ABCT is a primary focus for our artillery programme.
“We are committed to delivering a vehicle that will provide the modernised capabilities the ABCT needs to execute missions with confidence.”
Production of M109A7 howitzers and M992A3 carriers will take place at BAE Systems’ facility in York, Pennsylvania.
Works are expected to be completed by end of 2024.
According to the company, the latest order brings the total number of vehicle sets, including M109A7 and M992A3 carriers, ammunition and tracked (CAT) vehicle sets, to 310 and the total contract value to $1.9bn.
In December 2017, BAE Systems was awarded a $413.7m contract to complete the low-rate initial production phase and begin the full rate of production of the M109A7 howitzers.