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Home » Army’s New $1.2B Missile Defense System Contract Doubles Strike Capacity

Army’s New $1.2B Missile Defense System Contract Doubles Strike Capacity

Adam Green By Adam Green October 2, 2026 6 Min Read
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Army’s New .2B Missile Defense System Contract Doubles Strike Capacity

The U.S. Army is putting a major price tag on building an advanced missile defense system that will essentially double the capacity to strike moving targets in a military conflict.

The Army and defense contractor Lockheed Martin inked a new $1.2 billion contract to start production of the Increment II Precision Strike Missile (PrSM)—a surface-to-surface precision weapon that will be more compact while still utilizing existing legacy launchers in battle.

Hal Kempfer, a retired Marine intelligence officer and global defense expert, told Military.com the contract is a “future game changer.”

“With PrSM, they basically double the load,” Kempfer, CEO of the company Global Risk Intelligence and Planning, Inc., said. “Right now, you can only fire one attack missile from the current M142 High Mobility Artillery Rocket System or HighMar.

“But with the new missile system, you can fire two PrSMs from a HighMar, or you can fire four from an old M270 (Multiple Launch Rocket System). So, right off the bat, you get to keep using legacy launchers with more missile power and tremendous range. It about doubles the range.”

The Precision Strike Missile (PrSM) was recently fired from a U.S. Army M270A2 and HIMARS at White Sands Missile Range, New Mexico. (Official U.S. Army photo by Christopher Bohn)

New Missile to Replace Existing Defense System

The contract was announced on Sept. 21 as part of bigger plans to eventually replace the aging Army Tactical Missile System.

ATACMS is a supersonic, surface-to-surface tactical ballistic missile, also manufactured by Lockheed Martin. Its specifications show a more compact PrSM size, allowing existing launch pods to be able to carry two PrSM rounds per pod, as opposed to just one.

“The award moves PrSM Increment II from development and flight testing into production, advancing the Army’s next-generation long-range precision firing capability,” Lockheed Martin said in a statement. “Increment II enables the missile to engage moving land and maritime targets, expanding the Army’s long-range strike options.”

Retired Marine Intelligence Officer and global security analyst Hal Kempfer. (Linkedin).
Retired Marine Intelligence Officer and global security analyst Hal Kempfer calls the U.S. Army contract with Lockheed Martin to build a new Precison Strike Missile (PrSM) a game changer for military defense. (Linkedin).

Kempfer said the benefit will be almost immediate, citing how range plays a vital role in the course of a battle.

“You can reach out and touch a target from a lot further out,” he said. “The farther you get away from the front lines, the less likely you are to encounter battery fire,” Kempfer said. “So if you can put that thing back, 50 miles or 100 miles, you’re a lot safer.

“Your chances of getting your system taken out by air or something else drops dramatically. It’s a more survivable system.”

Billion-Dollar Cost Expected to Bring Savings

While the billion-dollar cost of the PrSM can be viewed as staggering, Kempfer believes it will actually save the Army in the long run.

“Yes, the cost is a little more expensive, but you can put two of these things out there on a battlefield, as opposed to one,” Kempfer said. “So, in that regard, you more than double your money.

“And in terms of firepower, you get a lot more. You get a lot more utility out of your HighMars system. So, that’s where the savings are.”

Artist’s concept for the Precision Strike Missile, which is designed to replace the Army Tactical Missile System. (U.S. Army Illustration)
Artist’s rendering of the Precision Strike Missile, which is designed to replace the Army Tactical Missile System. (U.S. Army Illustration)

Dave Griser, vice president, Precision Fires Launchers and Missile for Lockheed Martin, called this deal “an important step” in facilitating the technology and putting it in the hands of war fighters.

Kempfer also believes the new missile contract is related to prolonged U.S. operations in the Indo-Pacific, where ground forces might engage enemy ships at sea while also defending against potential air strikes— both at extended distances.

The more modern firepower is considered necessary to address the U.S. military’s need to engage moving threats at sea and on land. Kempfer pointed to the South China Sea as an example, describing “an area denial strategy” involving U.S. usage of islands as fire support bases and pre-positioned resources.

“In that regard, what you want is a system that’s going to meet your requirements there. PrSM does that. The ATACMS really don’t,” Kempfer said. “The ATACMS are great against stationary targets, not great at moving targets.

“But the PrSM has a much more dynamic guidance system. It can attack a target from a safe distance, a long way off.”

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