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≈$2.88B Army DEFINITIVE CONTRACT W56HZV17C0001

About $2.88B in advance material for the M109A7 self-propelled howitzer — a letter contract, one of only two among 207 records (BAE Systems, Army)

Department of the Army ・2017-03-31 〜 2030-09-30

An Army award for early procurement material supporting production of the M109A7 self-propelled howitzer and the M992A3 ammunition carrier. The record labels it a letter contract. Of the 207 Department of Defense contracts this site holds as of 2026-08-28, only two are described as letter contracts.

Contract key facts

  • RecipientBAE SYSTEMS LAND & ARMAMENTS L.P.
  • Contract value$2,875,232,202 (≈$2.88B)
  • BranchArmy
  • Awarding agencyDepartment of Defense
  • Awarding sub-agencyDepartment of the Army
  • Award typeDEFINITIVE CONTRACT
  • Period of performance2017-03-31 〜 2030-09-30
  • Contract ID (PIID)W56HZV17C0001

Contract scope (original)

LETTER CONTRACT FOR EARLY PROCUREMENT MATERIAL TO SUPPORT THE M109A7/M992A3 VEHICLE PRODUCTION.

Key points

  • An award for early procurement material supporting production of the M109A7 self-propelled howitzer and M992A3 ammunition carrier, from the Department of the Army to BAE Systems Land and Armaments.
  • The record labels it a letter contract — a form authorizing work to begin before terms are finally settled.
  • Of the 207 records this site holds as of 2026-08-28, only two are described as letter contracts; the other covers Patriot PAC-3.
  • The related undefinitized contractual action appears three times. Ordinary definitive contracts number 193.
  • Descriptions mentioning long lead appear 23 times among the 207 records, across all types of equipment.
  • Of the 207 records held as of 2026-08-28, two are letter contracts and three undefinitized actions, against 193 definitive contracts.

1A mechanism for starting before the terms are fixed

A letter contract is a form that authorizes work to begin before the terms are finally settled. Normally price and scope are pinned down before anything starts, but waiting can stop the flow of production. Long-lead material in particular takes time to arrive after ordering, so unless procurement starts early the later steps cannot move. That this record covers early procurement material reads as a response to exactly that.

2A form appearing twice in 207 records

Sorting the descriptions of the 207 Department of Defense contracts this site holds as of 2026-08-28, only two are described as letter contracts. The other covers Patriot PAC-3 missiles and launcher modification kits, and both concern standing up production. A related form, the undefinitized contractual action, where work begins with price unsettled, appears three times. Against 193 ordinary definitive contracts, these are exceptional handling.

3Long-lead material as the shared circumstance

The early procurement material named in the description reflects a common idea across the 207 records this site holds as of 2026-08-28. Descriptions mentioning long lead appear 23 times, across the F-35, P-8A, V-22, C-5M and propulsion systems alike, regardless of equipment type. Ahead of the contract that buys the finished article sits a contract to secure the parts, and that structure repeats.

This record is an instance of starting that advance procurement through a letter contract. The number of vehicles procured is not part of this record.

4Exceptional forms account for five of the 207

Starting before the terms are settled is not how ordinary procurement runs. Classifying the descriptions of the 207 Department of Defense contracts this site holds as of 2026-08-28 leaves only a handful of such forms.

Contracts described as letter contracts2of the 207 held as of 2026-08-28
Undefinitized contract actions (UCA)3
Ordinary definitive contracts193five exceptional cases in all

A letter contract is the form authorising work to begin before the terms are finally settled. Long-lead material in particular takes time between order and receipt, so unless ordering starts early the stages that follow cannot move. The other letter contract concerns Patriot PAC-3 missiles and launcher modification kits; both belong to standing up production.

Why it matters

The award-type field records the state in which a contract began. Letter contracts and undefinitized contractual actions both start spending before the price is fixed, leaving a later step to settle the terms. A tally that only lines up amounts merges settled money with money still to be negotiated.

FAQ

What is a letter contract?
A form that authorizes work to begin before the terms are finally settled, used where waiting to pin down the terms would stop the flow of production.
Why procure material in advance?
Because long-lead material takes time to arrive after ordering, and the later steps cannot move unless procurement starts early.
How many vehicles are procured?
The number of vehicles is not part of this record.

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Sources (primary)

This article is an independent organization based on the U.S. official spending data below. Verify the exact, latest details with the official source.

#Defense#Department of Defense#Army#Artillery#Contract types

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