The U.S. Department of Defense and BAE Systems announced on Tuesday an agreement worth about $339 million for the production of 48 vehicle sets of M109A7 Self-propelled Howitzer (SPH) and its companion, the M992A3 Carrier, Ammunition, Tracked (CAT) vehicle, and includes post-delivery support and spare parts.

The M109A7 Self-Propelled Howitzer (SPH) and M992A3 Carrier Ammunition Tracked (CAT), formerly known as the Paladin Integrated Management (PIM) program, will replace the current M109A6 Paladin and the M992A2 FAASV.

The M109A7 SPH and M992A3 CAT vehicle set is a vital program enhancement for increased combat capability and sustainment of the Army’s Armored Brigade Combat Teams (ABCTs). The program offers enhanced indirect-fire artillery capabilities to the ABCTs with new technologies for power generation and survivability.

The new M109A7 addresses long-term readiness and modernization needs of the M109 self-propelled howitzer family through a critical redesign and production plan that leverages today’s most advanced technology. Its 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 a significant upgrade over the M109A6 as it enhances reliability, maintainability, performance, responsiveness, lethality, and crew survivability.

The initial contract was awarded in 2017 for low-rate production. This most recent order brings the total number of M109A7 and M992A3 vehicle sets to 204, with a total contract value of $1.5 billion. The award follows the Army’s decision, announced in February, to commence full-rate production of the vehicle.