Textron Systems [TXT] said Monday it has received a five-year, $162 million deal to develop an advanced anti-vehicle precision munition system for the Army. 

Henry Finneral, Textron’s senior vice president for weapon systems, told

Defense Daily the top attack system it develops for the Close Terrain Shaping Obstacle (CTSO) Increment 1 program will be based on the XM204 munition the company will be delivering to the Army soon to meet an urgent operational requirement.

One recent example of U.S. Army Yuma Proving Ground (YPG) shaping the future force through testing of equipment is the XM204 interim wide area top attack munition. Photo: Mark Schauer, U.S. Army Yuma Proving Ground.

“We are committed to supporting the soldier by giving them technology that increases their combat advantage, and by keeping the soldier in the loop we give them even more control,” Finneral said in a statement on Monday. “This munition will increase tactical protection for our troops who are facing increasingly sophisticated enemies. For the adversaries and the types of conflicts we see emerging, this will represent a true next-generation anti-vehicle weapon.”

Textron announced in early August it received a five-year, $354 million deal to produce the new XM204 anti-vehicle top attack munition for the Army, which it said “was awarded in response to a U.S. Army Europe Operational Needs Statement” to replace obsolete systems and followed a 2019 development and qualification contract.

“Soldiers will be able to create obstacles in terrain where they don’t naturally exist, slowing enemy vehicles down and preventing their advancement. XM204 is a modern solution at a time when modernization is a top priority for our customer,” Finneral said in a statement at the time.

Initial deliveries of XM204 to the Army are anticipated in the second half of 2023, according to Finneral.

The CTSO Inc. 1 contract was officially signed with the Army on Nov. 8, a Textron spokesperson told Defense Daily, and will serve as the program of record to field a new remote command and control capable, anti-vehicle precision munition system.

“Capabilities will include increased effectiveness over legacy systems, mission planning tools, a remote-control station that enables constant soldier-in-the-loop control, and the ability to turn the munition on-and-off on command,” the company wrote in a statement. “CTSO Increment 1 allows an operator to control multiple systems and have improved sensing and reporting capabilities. The munition may be rapidly emplaced, is recoverable, and is non-persistent.”

Textron noted the five-year CTSO Inc. 1 contract includes designing the munition, conducting contractor qualification testing and ultimately delivering hardware to support government testing.

The company noted CTSO Increment 1 is the first of three increments for the program that aims to provide the Army with increased capabilities “to modernize terrain shaping operations.”