Daily Newsletter

28 March 2024

Daily Newsletter

28 March 2024

BAE Systems secures $318m contract for “king of battle” howitzers

The five-year technical support and sustainment system technical support contract will see BAE Systems deliver a spectrum of engineering and logistics services.

Harry McNeil

BAE Systems, a global defence contractor, has secured a contract worth up to $318m from the US Army.

The contract is to cover technical and sustainment support services for the M109A6 and A7 Self-Propelled Howitzers and their companion, M992A3 carrier, ammunition, and tracked (CAT) vehicles.

According to GlobalData's intelligence on the US defence market, the US Army currently has 198 M109A6 Paladin and 247 M109A7 self-propelled artillery systems in its fleet. The US also has 247 M992A3 support vehicles. 

The five-year technical support and sustainment system technical support contract will see BAE Systems deliver a spectrum of engineering and logistics services to enhance the performance, maintenance, and testing of the M109 family of vehicles.

Commenting on the contract, Dan Furber, director of ground vehicle production for BAE Systems' Combat Mission Systems business, highlighted the role of the M109 Self-Propelled Howitzer as the "King of Battle." Furber emphasised that by availing sustainment services for the M109, the US Army is empowered to uphold a level of combat readiness, reinforcing their ability to engage in contemporary warfare scenarios.

This latest services contract follows the M109A7 production contract awarded to BAE Systems in November 2023. The M109A7, the newest iteration in the M109 family, is the cornerstone of the Armored Brigade Combat Teams (ABCT), furnishing indirect fire support capabilities. Featuring a blend of advancements and design elements, the M109A7 attempts to ensure enhanced survivability and operational efficiency, thereby mitigating sustainability costs associated with obsolete components.

In January 2024, BAE Systems made strides in fortifying the US Army's artillery capabilities with two contracts. The first involved the production of titanium M777 Howitzer structures. The second contract entailed the procurement of additional M109A7 Paladin self-propelled howitzers and M992A3 ammunition carriers. 

BAE Systems Plc will account for a 43.4% share of the artillery systems market in North America, according to GlobalData's "The Global Artillery Systems Market 2023-2033" report.

Services covered under the contract will be rendered at military installations across the United States and abroad, in tandem with BAE Systems facilities located in hubs including Aiken, South Carolina; Elgin, Oklahoma; Endicott, New York; Minneapolis, Minnesota; Sterling Heights, Michigan; and York, Pennsylvania.

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