BETHESDA (dpa-AFX) - Lockheed Martin Corporation (LMT), an aerospace and defense company, Monday announced that it has secured an indefinite delivery, indefinite quantity or IDIQ contract of $1.2 billion to produce Increment 2 of the Precision Strike Missile or PrSM.
This contract was secured after a second flight test demonstrated the missile's ability to engage moving maritime targets.
PrSM Increment 2 completed its first flight test in March and its second flight test in August and additional PrSM Increment 2 flight tests are scheduled for 2027.
The IDIQ contract covers initial procurement and future orders of PrSM Increment 2 missiles, follow-on production and continued development with work being performed at Lockheed Martin facilities and across the company's U.S. industrial base.
Further, the company is expanding capacity to quadruple PrSM production while continuing to develop additional PrSM increments. It will begin production of the initial Increment 2 missiles while continuing flight testing and system maturation. It is also in a position to scale production as the Army moves toward larger Increment 2 procurements.
On Monday, shares closed at $535.40, up 0.38% on the New York Stock Exchange.
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