Army Reopens PrSM Increment 4 Competition with Five New Prototype Awards

Key points

• The Army awarded Other Transaction Authority agreements to Anduril, Castelion, Lockheed Martin, RTX, and Mach Industries for PrSM Increment 4 prototypes.
• The Increment 4 missile must achieve a range of at least 1,000 km, roughly double the baseline PrSM range, and launch from the M142 HIMARS.
• The program requires an open systems architecture and operational capability in the Indo-Pacific region.
• A competitive fly-off is planned for fiscal 2027, with a final down-select potentially occurring in fiscal 2030.
• The announcement follows a $1.2 billion contract awarded to Lockheed Martin for PrSM Increment 2 and the first combat use of PrSM in Iran.

Background

The PrSM program has seen rapid progression, with the Army using the system in combat in March 2026 during the conflict in Iran. Reports indicate that the U.S. has used 'virtually all' of its PrSM systems since then. In September 2026, the Army awarded Lockheed Martin a $1.2 billion contract for PrSM Increment 2, which features a multimode seeker for maritime targets and a range of up to 500 km. The current Increment 4 competition restarts the process for a longer-range variant, building on previous design and risk-reduction activities conducted by Lockheed Martin and an RTX-Northrop Grumman team in 2023.

How outlets are covering it

Breaking Defense emphasizes the competitive nature of the new awards and the specific technical requirements, such as the open systems architecture and Indo-Pacific operational scenario. Defense News highlights the timeline for the fly-offs and down-selects, noting the competitive process in fiscal 2027 and 2028. The Defence Blog focuses on the range capability (1,000 km) and the integration with the HIMARS system. AD HOC News provides a financial perspective, noting Lockheed Martin's stock performance and the recent $1.2 billion contract for Increment 2, but does not detail the Increment 4 competition specifics. There is no significant disagreement among the sources, but the emphasis varies from technical specifications to financial implications and timeline.

Why it matters

The PrSM Increment 4 program is critical for the U.S. Army's long-range strike capabilities, particularly in the Indo-Pacific region. The ability to hit moving targets at ranges exceeding 1,000 km enhances the Army's strategic flexibility and deterrence. The competitive process ensures innovation and cost-effectiveness, while the open systems architecture allows for future upgrades and integration of new technologies. The recent combat use of PrSM systems underscores the urgency and importance of advancing the program.

What to watch

The five selected companies will develop their prototypes and participate in a competitive fly-off in fiscal 2027. The Army will conduct a down-select after this event, followed by a final fly-off in fiscal 2028. The final down-select could occur as late as fiscal 2030. The Army will also continue to accelerate production of PrSM Increment 2 under DoD framework agreements, with work to be completed by 2031.