The U.S. Army has awarded BAE Systems a $249,1 million to contract for the self-propelled howitzers, according to a statement issued Friday by U.S. Department of Defense.

Under the contract modification, BAE Systems will build and deliver M109A7 self-propelled howitzers and M992A2 field artillery ammunition support vehicles for the U.S. Army.

Work will be performed in York, Pennsylvania, with an estimated completion date of Jan. 31, 2023.

The UPI.com has reported that under the original contract BAE received $133.5 million for the vehicles. In February 2018 the contractor received $148 million to procure materials to build the vehicles. Also, in October, BAE Systems has awarded a $48 million contract modification to support producing of M109A7 artillery system.

The M109A7 is the latest howitzer in the BAE Systems M109 family of vehicles, the primary indirect fire support system for the ABCTs. It uses the existing main armament and cab structure of a Paladin M109A6, and replaces the vehicle’s chassis components with modem components common to the Bradley vehicle. The improved chassis structure provides greater survivability and commonality with the existing systems in the ABCT, reducing operational sustainability costs by replacing obsolete components.

The M109A7 is supported by the Army as a vital technology enhancement program to maintain the combat capability of its ABCTs. The M109A7 will solve long-term readiness and modernization needs of the M109 family of vehicles through a critical redesign and production plan that leverages the most advanced technology available today. This state-of-the-art “digital backbone” and power generation capability provides a more robust, survivable and responsive indirect fire support capability for ABCT Soldiers.

The M109A7 is considered to be the most cost-effective method to significantly improve sustainability and survivability, while reducing the logistics burden on the ABCT and supporting fires brigades.