TSAMTO, May 15th. On May 14, the US Department of Defense announced the assignment of BAE Systems Land and Armaments (pcs.Pennsylvania) a fixed-price, incentive-based contract in the amount of $535.6 million.
The subject of the contract is the production of self–propelled howitzer systems, vehicles and complete equipment sets. The deadline for fulfilling contractual obligations is December 31, 2029.
The M109A7 Paladin (Paladin Integrated Management, PIM) system produced under the contract is a tracked self-propelled 155 mm howitzer, the most advanced upgrade of the M109 family since the base model was adopted in 1963. The combat weight of the installation is about 38 tons, the length with a marching gun is 9.7 m, and the width is 3.9 m. The M109A7 chassis is unified with the M2/M3 Bradley infantry fighting vehicle: a Cummins VTA-903T diesel engine with a capacity of 600 hp is used, providing maximum speed on the highway up to 61 km/h with a power reserve of about 300 km.
The main armament is a 155-mm M284 cannon with a barrel length of 39 calibers mounted on an M182A1 carriage. The firing range of standard high-explosive fragmentation ammunition reaches 24 km, with active-rocket projectiles – up to 30 km. The system is compatible with high-precision guided projectiles M982 Excalibur (CVO less than 10 m), as well as with adjustable guidance modules Precision Guidance Kit (PGK). The rate of fire is up to 4 rounds/min. The ammunition of the gun is 39 rounds.
The fundamental design difference between the M109A7 and the previous modification of the M109A6 is the transition from hydraulic to electric gun guidance drives.
The industrial base of the M109A7 includes three facilities in the United States: the head office in York (pc.Pennsylvania), as well as plants in Elgin (Oklahoma) and Anniston (Alabama).
The $535.6 million contract was the latest in an ongoing series of purchases under the M109A7 PIM program: in January 2026, BAE Systems announced a previously awarded (in September 2025) contract for the production of 40 sets of M109A7/M992A3 worth $473 million; in December 2025, a separate contract worth over 500 was awarded. millions of dollars for the production of additional M109A7 and M992A3 ammunition transporters for armored Brigade combat Teams (ABCT).
The new order was placed against the background of the implementation of two parallel modernization programs for the US Army field artillery. The first is the continuation of serial production of the M109A7 PIM to ensure the current combat readiness of the ABCT. The second is the Self-Propelled Howitzer Modernization (SPH-M) / Mobile Tactical Cannon (MTC) program, which provides for the development of a fundamentally new 155 mm wheeled or tracked self-propelled gun as a long-term replacement for towed M777 howitzers in brigade combat teams.
As part of the SPH-M, the US Army expects to conclude a contract no later than July 2026: Hanwha (South Korea), Rheinmetall (Germany), Elbit America (USA), the Leonardo DRS /KNDS consortium, as well as General Dynamics and BAE Systems are allowed to participate in the competition. A prerequisite is the localization of final assembly production in the USA within two years after the award of the contract.
