The US army has awarded BAE Systems (www.baesystems.com) a contract worth $245.3 million to continue production of both the M109A7 self-propelled howitzer and the M992A3 ammunition carrier.

Adam Zarfoss, director of artillery and recovery systems at BAE Systems, said the M109A7 is a “significant upgrade over the vehicle’s predecessor”, the M109A6 Paladin self-propelled howitzer.

It uses the existing main armament and cab structure of the M109A6, but replaces the vehicle’s chassis structure with a new design that increases “survivability”.

BAE Systems was awarded a contract to produce 18 M109A6 vehicle sets in October 2014. The new contract is for an additional 30.

The army has a total “acquisition objective” of 580 sets. Work on the M109A7 is currently underway at the Anniston Army Depot in Alabama and at BAE Systems’ York, Pennsylvania, and Elgin, Oklahoma, facilities.