The U.S. Army has awarded Lockheed Martin an indefinite delivery, indefinite quantity (IDIQ) contract worth up to $1.2 billion for Precision Strike Missile (PrSM) Increment 2. The award follows a second successful flight test that demonstrated the missile’s ability to engage moving maritime targets. PrSM is the Army’s next-generation long-range precision strike weapon and is designed to replace the Army Tactical Missile System, or ATACMS. Lockheed Martin is beginning initial production while continuing flight testing and system maturation. In March, the company signed a seven-year agreement with the U.S. Department of War to raise annual production capacity to 550 missiles, building on a $4.94 billion Army contract awarded last year and following PrSM’s first combat use during Operation Epic Fury.