PrSM IDIQ Contract Modification

The U.S. Army Contracting Command – Redstone Arsenal awarded Modification W31P4Q-25-D-0010 P00007 to Lockheed Martin Missiles and Fire Control, increasing the ceiling of the Precision Strike Missile (PrSM) Increment 1 Indefinite-Delivery/Indefinite-Quantity (IDIQ) production contract from $4.9 billion to $13.3 billion and extending the ordering period through FY32. This modification, issued on a sole-source basis under the authority of 10 U.S.C. 3204(a)(1) and implemented by FAR 6.302-1(a)(2)(iii)(A) and (B), was justified to prevent substantial duplication of cost and unacceptable delays in fielding the PrSM system to replace the aging Army Tactical Missile System. The contract supports full-rate production of up to 1,000 missiles annually from FY25 through FY32, with a total projected delivery of up to 1,170 missiles, along with production tooling, sustainment assets, obsolescence management, and engineering changes. Performance is centered at Lockheed Martin’s facility in Grand Prairie, Texas, while oversight and administration are managed by the U.S. Army Contracting Command at Redstone Arsenal, Alabama. Funding is drawn from Missile Procurement, Army; Research, Development, Test, and Evaluation; and potentially the U.S. Marine Corps and Foreign Military Sales programs. The award includes certified cost or pricing data, affirming the Government's determination that prices are fair and reasonable, and triggers DCAA audit authority. The period of performance runs from March 28, 2025, to September 30, 2032, with inspection and acceptance conducted by Government personnel, likely at both the production and delivery sites. Lockheed Martin, identified by CAGE code 64059, is not certified as a small business and no socioeconomic set-asides apply. No specific technical specifications, packaging standards, or detailed payment methodologies are included in the documentation, and while the contract’s structure and rationale are clear, key administrative details such as the contracting officer’s name, COR/COTR information, invoicing systems, and clause listings are not provided.