The Army gave Lockheed Martin Corp. [LMT] a $31.3 million contract extension for more M299 launchers for the Hellfire missile.

Lockheed will provide the launchers and related equipment to the Army.

The M299 is used aboard a variety of platforms to launch all variants of the Hellfire missile.

The latest contract change modifies the $51.3 million Launcher Bridge 3 contract awarded in 2007. That new contract modification requires Lockheed to supply an additional 298 M299 helicopter-mounted four-rail missile launchers, 134 launcher electronic assemblies (LEAs) and multiple spares.

The original contract called for delivery of 430 launchers and 376 LEAs to U.S. and international forces, and also included multiple spares, engineering services and depot support.

Deliveries under the original Bridge 3 contract are underway. Lockheed is increasing the rate of production to accommodate the additional launchers, LEAs and spares. With the additional orders, deliveries are scheduled to be completed in 2011.

Lockheed produces electronics for the M299 launcher at its facility in Ocala, Fla. Marvin Engineering in Inglewood, Calif., performs final assembly and test. This contract update will extend M299 production activity in Ocala and Inglewood until 2011.

The M299 is integrated on the AH 64D Apache LONGBOW, AH-1Z Cobra, Eurocopter Tiger, SH-60-B Seahawk and UK AH MK1 Apache helicopters.

More than 2,000 M299 launchers have been produced for the U.S. forces as well as international forces equipped with Hellfire weapon systems.

Lockheed was awarded a $30 million contract last year to lead the Army modernization of the M299 launcher family. Building on experience gained on producing and supporting the fielded and combat-proven M299, this next-generation lightweight launcher will carry Hellfire II and JAGM on attack and reconnaissance helicopters, with a growth path for the DAGR system and other manned and unmanned platforms. The modernized M299 launcher production is scheduled to begin in 2011.