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Paladin Integrated Management (PIM)

Category: Procurement • Line Item: 2073GZ0410 • FY26 Budget Request: $250.2M

Overview

Budget Account
2033A - Procurement of Weapons and Tracked Combat Vehicles, Army
Budget Activity
01 - Tracked combat vehicles
Previous Year
Description

The Paladin Integrated Management (PIM) program is a key component of the Army's modernization strategy, specifically supporting the Long-Range Precision Fires priority. The primary goal of this line item is to replace the aging M109 Family of Vehicles (FOV), including the M109A6 Self-Propelled Howitzer (SPH) and the M992A2 Field Artillery Ammunition Supply Vehicle (FAASV), with the modernized M109A7 SPH and M992A3 Carrier Ammunition Tracked (CAT) vehicles. This modernization effort addresses critical capability gaps that arose after the termination of the Non-Line of Sight Cannon program in 2009. It also addresses issues related to obsolescence and limitations in space, weight, and power (SWaP) in the legacy fleet.

The PIM system integrates several advanced subsystems, including the suspension and drivetrain from the Bradley Fighting Vehicle, electric gun drive systems developed under the Future Combat Systems (FCS) program, and current armament systems. The new chassis is designed to provide improved force protection, survivability, and mobility compared to previous models. The objective is to enhance the Army's ability to deliver precise, long-range artillery fire while ensuring the safety and effectiveness of soldiers operating these vehicles.

The PIM program is classified as an Acquisition Category (ACAT) I Major Defense Acquisition Program (MDAP), indicating its significance and scale within the Department of Defense. The program is managed by the Army and involves both procurement and modification activities under Appropriation 2033A, specifically within the Tracked Combat Vehicles budget activity. The Army's acquisition objective is to field vehicle sets, with each set consisting of one M109A7 SPH and one M992A3 CAT, ensuring a one-for-one replacement in cannon fires battalions within Armored Brigade Combat Teams and Echelons Above Brigade formations.

For FY 2026, the requested base procurement funding will support the production of vehicle sets. This funding covers all aspects of full-rate production, including contractor manufacturing, assembly of subsystems, integration, testing, and checkout operations. Additionally, it supports government program management functions such as quality process management, program reviews, material management, and engineering activities related to problem resolution and supplier oversight. The funding also provides for the acquisition and delivery of government-furnished materials, such as cannon assemblies, to the prime contractor.

The cost structure for the PIM program includes recurring costs for manufacturing, government-furnished equipment, engineering change orders, and technical support, as well as non-recurring costs for production facilitization. Support costs are also allocated for contractor logistics, technical publications, initial spares and repair parts, support equipment, and new equipment training. The program's procurement history indicates that BAE Systems in York, Pennsylvania, is the primary contractor, with production managed by the Army's TACOM in Warren, Michigan. The production schedule reflects a gradual reduction in annual quantities, which has resulted in increased unit costs due to lower economies of scale.

The PIM program is justified by its role in closing critical capability gaps, reducing lifecycle costs, and extending the operational life of the Army's self-propelled artillery fleet. The enhanced SWaP capacity also allows for the integration of future technologies and upgrades, ensuring the vehicles remain relevant in evolving operational environments. Furthermore, the program supports both active and reserve components, contributing to homeland defense, domestic emergency response, and military support to civil authorities, as mandated by Section 1815 of the FY 2008 National Defense Authorization Act.

Budget Trend

Paladin Integrated Management (PIM) Procurement Programs (2073GZ0410) budget history and request


Interactive stacked bar chart for exploring the Paladin Integrated Management (PIM) budget
Interactive line chart for exploring the Paladin Integrated Management (PIM) budget
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Enacted Requested
$199,477,000 $247,400,000 $273,850,000 $584,089,000 $772,149,000 $525,902,000 $553,425,000 $463,425,000 $662,900,000 $1,009,489,000 $742,349,000 $568,599,000 $250,238,000

Interactive stacked bar chart for exploring the Paladin Integrated Management (PIM) procurement
Interactive line chart for exploring the Paladin Integrated Management (PIM) procurement
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Actual Enacted Requested
8 18 30 48 73 51 96 31 43 46 57 20 10
The DoD did not provide line item forecasts in its FY26 budget request, see the prior year budget for any forecasted years
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FY2026 Defense Budget Detail

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FY2026 Budget Released: 06/30/25