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Market Signal: Precision Artillery

Who supplies the M1156 Precision Guidance Kit? Inside the Army's new five-year production IDIQ

Published September 23, 2026 / M1156 PGK supply chain

The U.S. Army has awarded Northrop Grumman a five-year, firm-fixed-price IDIQ contract to manufacture, inspect, test, package and deliver M1156 Precision Guidance Kits and associated variants through September 2031.

The contract has a maximum ceiling of $862.8 million. This is not committed spending: funding and work locations will be determined through individual orders.

The Precision Guidance Kit replaces a conventional artillery fuze, converting existing 155mm projectiles into GPS-guided weapons. Northrop Grumman has delivered more than 145,000 kits and is now producing the PGK E5, which adds protection against GPS jamming.

E5 production is underway at Northrop Grumman's Plymouth, Minnesota facility, with initial deliveries expected in early 2028.

Up to $862.8M

IDIQ contract ceiling

Funding and locations set by order

Sep. 2031

estimated completion

Five-year production IDIQ

Early 2028

first E5 deliveries

Anti-jam variant now in production

A precision-electronics system in a fuze-sized package

PGK combines power, guidance and aerodynamic control inside a replacement artillery fuze.

Generate power

An alternator assembly and power electronics supply the kit during flight.

Guide

GPS, anti-jam technology and a guidance processor determine trajectory corrections.

Control

Canard assemblies and precision mechanisms make the physical course corrections.

Protect

Antenna radomes, covers and bumpers protect the compact internal hardware.

The preceding first-tier supplier base

Net mapped subcontract obligations, FY2021-FY2025

Mimir's FY2021-FY2025 data identifies 67 first-tier supplier sites under the preceding PGK production contract, representing approximately $348 million in net mapped subcontract obligations.

67
identified supplier sites
~$348M
net mapped subcontract obligations
~72%
through the five largest sites
25%
19%
14%
7%
7%
Other 28%

Almost three quarters of the net mapped value passed through the five largest supplier sites:

Precision Inc.

Minneapolis, Minnesota

~$86M
~25% of net mapped value

Alternator armature assemblies

Altron

Anoka, Minnesota

~$65M
~19% of net mapped value

Circuit-card assemblies, guidance processors and power electronics

CAES Systems

San Diego, California

~$50M
~14% of net mapped value

Program components recorded under the preceding PGK production contract

Frontgrade Technologies

Exeter, New Hampshire

~$24M
~7% of net mapped value

Optimized antenna and radome assemblies

Ironwood Plastics

Ironwood, Michigan

~$24M
~7% of net mapped value

Canard covers, antenna radomes and protective assemblies

The E5 guidance position

Additional records identify Magnetic Technologies supplying canard assemblies. Army documents identify L3Harris as the E5 GPS and anti-jam production partner.

The preceding production network shows why PGK should not be viewed solely as an ammunition program. Its supply chain brings together compact power generation, guidance electronics, GPS technology, antennas, radomes, control surfaces and precision-machined components inside a package that replaces a standard fuze.

As individual orders are placed, the new IDIQ could direct substantial demand into this specialized precision-electronics supply chain beyond Northrop Grumman's final assembly operation in Minnesota.

Sources and notes

U.S. Department of War contract announcement, U.S. Army M1156 PGK program information, U.S. Army 2026 portfolio, Northrop Grumman PGK E5 announcement, USAspending, FPDS and Mimir Data Platform and Modeling.

Mimir analysis of adjusted first-tier subcontract records associated with the preceding PGK production contract, FY2021-FY2025. Supplier sites are defined at CAGE level and figures are rounded. The $862.8 million value is the maximum ceiling of the new IDIQ, not committed spending; funding and work locations will be determined through individual orders.

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