Strategic Systems Programs in Washington, D.C., on June 22, 2026, awarded Lockheed Martin Space an $83,180,528 cost-plus-incentive-fee modification to previously awarded contract N00030-22-C-1025 (Modification P00093) for Conventional Prompt Strike (CPS) munitions, specifically to procure additional All-Up Rounds satisfying U.S. Army requirements under the Navy's CPS program. Work will span seven production locations across the United States, with completion set for June 30, 2029. The action is funded by Fiscal Year 2025 Army Missile Procurement, Army Reconciliation Munitions appropriations — not research and development accounts — signaling that the Army is buying weapons for operational inventory rather than test hardware.
Background
The Conventional Prompt Strike program is a joint Navy-Army effort to field a long-range hypersonic strike capability using a common underlying weapon: the Common Hypersonic Glide Body (C-HGB). In the joint architecture, the Navy leads design and development of the C-HGB and its two-stage solid-fuel booster, and integrates the two into a complete All-Up Round (AUR) ready for firing. The Army, by contrast, is responsible for manufacturing of the C-HGB itself. That division of labor is why a Navy contracting activity — Strategic Systems Programs in Washington, D.C. — is executing a modification that ends up delivering weapon stockpiles to the Army.
The Army's ground-launched counterpart, the Long Range Hypersonic Weapon (LRHW), known operationally as Dark Eagle, uses the same C-HGB as the Navy's ship-launched CPS variant. Sharing a common glide body allows both services to draw from a single industrial production base, reducing per-unit cost and simplifying sustainment. The June 22 modification is specifically described in contract documentation as covering "procurement of additional All Up Rounds, satisfying Army requirements, under the Navy's Conventional Prompt Strike program," making explicit that these AURs are earmarked for Army Dark Eagle batteries rather than Navy ship magazines.
Lockheed Martin Space has been the prime systems integrator for the CPS AUR since the initial contract was awarded in 2018. The C-HGB itself is a common system utilized by the Navy for CPS and by the Army for its LRHW, and derives from Sandia's Winged Energy Reentry Vehicle (SWERVE) lineage. The June 22 action was executed as a sole-source acquisition and was previously announced on SAM.gov.
Key Details
The $83,180,528 modification is structured as a cost-plus-incentive-fee contract, meaning Lockheed Martin is reimbursed for allowable costs and can earn additional fee if it meets defined performance targets — a structure typical for complex weapon system production where costs are not fully predictable at award. Of the total obligated funding, $79,251,957 comes from Fiscal Year 2025 Army Missile Procurement, Army Reconciliation Munitions appropriations. The Army Missile Procurement funding source is significant: procurement accounts are used for production-ready weapon systems, not for technology development or testing, confirming that these rounds are headed to operational Army units.
Production work is distributed across seven U.S. facilities. The largest share — 31 percent — occurs in Denver, Colorado. Magna, Utah accounts for 26 percent of the work, and Cortland, Alabama holds 14 percent. Simsbury, Connecticut contributes 10 percent, while East Aurora, New York and Owego, New York each account for 7 percent. The remaining 2 percent is performed in Sunnyvale, California. This geographic spread reflects the complexity of hypersonic weapon manufacturing, which draws on propulsion, composite structures, guidance electronics, and thermal protection specialists distributed across the country.
The contract completion date of June 30, 2029, provides a roughly three-year production window. The Navy's own CPS ship integration timeline targets USS Zumwalt for Q4 2025, USS Michael Mansoor for Q4 2026, and USS Lyndon Johnson for Q4 2027, with Virginia-class Block V submarines expected in 2029. Army AUR production under this modification will run concurrently with ongoing Navy production, maximizing throughput on shared production tooling and supplier pipelines.
Program Context
The CPS program has had a long development arc. Strategic Systems Programs awarded the initial CPS contract to Lockheed Martin as prime systems integrator in 2018. Subsequent modifications have funded design, development, build, and integration of equipment for missile flight test demonstrations and fielding. The June 2026 Army AUR order, funded from procurement rather than R&D accounts, marks a transition point in the broader hypersonic program: both services are now in active stockpile-building mode rather than purely in development.
The Army's decision to procure additional AURs through the Navy CPS contract vehicle — rather than through a separate Army-managed procurement — underscores the efficiency of the joint program structure. A single contract vehicle, a single prime integrator, and a shared glide body allow the Army to take advantage of Navy production investments without duplicating industrial infrastructure. The sole-source nature of the award reflects Lockheed Martin's position as the established prime systems integrator with no viable alternative at this stage of production.
What It Means for Contractors
- The seven-location production spread — Denver, Magna, Cortland, Simsbury, East Aurora, Owego, and Sunnyvale — identifies the active CPS supplier footprint. Subcontractors and vendors in hypersonic propulsion, composite airframe structures, guidance electronics, and thermal protection systems with existing relationships at these sites are positioned for subcontract opportunities under the modification.
- The cost-plus-incentive-fee structure means Lockheed Martin will be submitting cost proposals and incurred-cost documentation to Strategic Systems Programs. Defense Contract Audit Agency involvement is standard on CPIF contracts of this size; firms providing services or materials to Lockheed under this vehicle should expect DCAA-compliant accounting requirements to flow down.
- The Army Missile Procurement funding source signals that congressional appropriators have already cleared the budget authority for these rounds. Defense contractors tracking Army hypersonic investment should note that procurement — not R&D — dollars are now flowing, meaning follow-on production orders are more likely than a program restructure or cancellation.
- Firms pursuing hypersonic supply chain positions should monitor both Navy CPS and Army LRHW procurement actions simultaneously. The shared C-HGB and joint acquisition structure means a single supplier relationship can serve both service programs, and the combined Navy-plus-Army demand signal justifies capital investment in dedicated production capacity.
- The June 30, 2029 completion date aligns with the current DoD hypersonic portfolio build-out timeline, including the Navy's planned CPS deployment to Virginia-class submarines that same year. Contractors developing next-generation thermal protection, advanced propulsion, or precision guidance subsystems should ensure their technology readiness levels and production scale match this window to compete on follow-on AUR buys.
