# Weapons and Munitions Product Improvement Programs — Program Element 0607131A

**Program element:** 0607131A  
**Component:** U.S. Army  
**Appropriation:** 2040 — RDT&E, Army  
**Budget Activity:** 7 — Operational System Development  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/programs/0607131A

## Summary

U.S. Army funding falls 73% to a $21.6M request in FY2027 (down from a FY2026 peak), before stepping down 64% across the five-year plan. In the FY2027 defense authorization, the House funded it in full; the Senate added 46% (to $31.6M); House appropriators added 93% (to $41.6M). DoW Ordnance leads the industry work, though an unusually large share flows to government labs and warfare centers.

## Funding profile

| Fiscal Year | Estimate Type | Amount ($M) |
|---|---|---|
| FY2025 | Actual | 31.3 |
| FY2026 | Enacted | 80.8 |
| FY2027 | Request | 21.6 |
| FY2028 | Outyear | 12.6 |
| FY2029 | Outyear | 7.7 |
| FY2030 | Outyear | 7.6 |
| FY2031 | Outyear | 7.7 |

> Estimate types are not summed — the profile mixes actuals, enacted law, the request, and outyear projections.

## Congressional marks (FY2027)

| Stage | Marked ($M) | Change ($M) |
|---|---|---|
| Request | 21.6 | — |
| House NDAA (HASC) | 21.6 | +0.0 |
| Senate NDAA (SASC) | 31.6 | +10.0 |
| House Approps (HAC-D) | 41.6 | +20.0 |

> FY2027 NDAA authorization marks, as of 2026-07-27. Not appropriations or final law.

## Projects (4)

| Project | Title | FY2025 actual | FY2026 enacted | FY2027 request | Move |
|---|---|---|---|---|---|
| ER6 | Direct Fire Technology | 11.8 | 62.1 | 9.0 | −86% |
| ER2 | Close Combat Technology | 6.1 | 4.7 | 6.5 | +38% |
| CP2 | Precision Fire Technology Improvements | 8.2 | 3.6 | 3.8 | +3% |
| ER5 | Indirect Fire and Fuze Technology | 5.2 | 10.3 | 2.3 | −77% |

> Projects are the summable leaves: the program element total is their sum, never added to it.

### Project ER6 — Direct Fire Technology

The Direct Fire Technology funding will be used to support direct fire ammunition from small caliber ammunition, medium caliber ammunition and large caliber ammunition enhancements to lethality, effectiveness, survivability, accuracy and general product improvements. Fiscal Year (FY) 2027 funding supports a number of small caliber ammunition projects including improvements to training ammunition; improvements to make small caliber primers more environmentally friendly; optimization of handgun ammunition; exploring precision sniper improvements and continuing the effort to reduce Soldier load by developing lightweight ammunition. Improvements to medium caliber ammunition include lethality and safety enhancements including Counter Unmanned Aircraft System (C-UAS) technology. Improvements to 105mm and 120mm tank ammunition include examination and implementation of performance enhancement and improvements to tracer and combustible cartridge case.

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| Small Caliber Ammunition Product Improvements | 0.8 | 1.3 | 7.2 |
| Medium Caliber Ammunition Product Improvements | 0.5 | 1.3 | 1.3 |
| Tank Ammunition Product Improvements | 0.5 | 0.5 | 0.5 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project ER2 — Close Combat Technology

Project ER2 Close Combat Technology includes development efforts to upgrade Close Combat technologies, energetics, and munitions, such as counter explosives, grenades, demolitions, shoulder launched munitions, pyrotechnic simulators, countermeasure flares, non-lethal ammunition/systems, networked munitions and mines, and sUAS lethal & protective payloads that have been fielded or have received approval for full rate production. Funding will allow the project to identify, characterize, study, analyze, test and develop technologies to resolve close combat munition reliability, safety, environmental, storage, standardization, obsolescence and manufacturing/producibility issues.

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| M330 Obscuration Grenade | 1.1 | 0.6 | — |
| M67 (G881) Fragmentation Hand Grenade | 0.3 | — | — |
| M112 Demolition Block - Alternate Fill | 0.3 | — | — |
| Volcano Modernization | 0.1 | 2.0 | 1.2 |
| Payload Modernization for sUAS | — | 1.6 | 3.1 |
| MICLIC Trainer | — | — | 0.4 |
| M82 Electronic Delay | — | 0.3 | 1.3 |
| Shoulder Launched Munition Improvements | — | 0.2 | — |
| Family of Smoke Pot Modernization | — | — | 0.5 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project CP2 — Precision Fire Technology Improvements

The Precision Fire Technology Improvements project supports developmental initiatives for precision artillery munitions to include projectiles and fuzes, and fuze setter. Efforts will drive artillery fuze setter platform integration requirements as well as developmental precision artillery munitions and artillery weapon system requirements. Efforts will identify, characterize, study, analyze, test, and develop Precision Guided Munition (PGM), platform, communications and Fuze technologies to increase range, lethality, effectiveness, survivability, and accuracy required to support the Army's Field Artillery modernization objectives. Fiscal Year (FY) 2027 funding will support software development and integration activities as well as continued monitoring of upgrade strategies and requirements of interfacing PGMs, platforms, fire control systems, and Fuzes in support of artillery ammunition and platform modernization. Funding will also support fuze setter development activities necessary for compatibility with PGMs and increased power, and data handling capabilities.

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| Enhanced Portable Inductive Artillery Fuze Setter (EPIAFS) Modernization | 3.4 | 3.6 | 3.8 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project ER5 — Indirect Fire and Fuze Technology

Indirect Fire and Fuze Technology includes product improvement and development efforts to upgrade indirect fire weapon systems and munitions, as well as fuzed munitions that are fielded and/or are in production. Initiatives include improved target engagement, increased reliability, availability, maintainability, and safety, standardization and interoperability with weapons and munitions of Allied Nations, defense exportability features, reduction of failure mechanisms, and supply chain risks through the introduction of new and alternative technology and materiel solutions, improvement of manufacturing methods and their associated production and life cycle support processes, new capabilities in response to the evolving and emerging threats and countermeasures, and reduction/elimination of potential environmental and health risks associated with these products. This endeavor will sustain and enhance indirect fire weapon systems and fuzed munitions for the U.S. Army and the Department of War (DoW). Fiscal Year (FY) 2027 funding will continue to support analysis/risk mitigation efforts to deliver the Setback Generator Tester to provide standardized test methods; continue Mortar and Medium Caliber proximity signal processor Application-Specific Integrated Circuits (ASIC) second source qualifications. Block Upgrade: deliver the M739A1 Spinlock Spring Redesign for Automation to production; deliver Medium Caliber Miniature Battery dynamic modeling & simulation to support design changes; continue the common artillery ESAD; continue the extended duration M782 artillery fuze thermal battery integration; and start AMP ESAD integration.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** DoW Ordnance (0.4, 16%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| Fuze Technology Integration (FTI) | 2.2 | 2.3 | 2.3 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

## Where the FY2027 request goes

| Category | Share | $M |
|---|---|---|
| Industry primes | 1.7% | 0.4 |
| Government labs & warfare centers | 82% | 17.7 |
| Other / unspecified | 16% | 3.5 |

**Top named industry performers:** .

> R-3 exhibit contract funding, not USAspending obligations.

## Mission & acquisition strategy

Project CP2 / Precision Fire Technology Improvements supports developmental initiatives for precision artillery munitions to include projectiles and fuzes, and fuze setter. Efforts will drive artillery fuze setter platform integration requirements as well as developmental precision artillery munitions and artillery weapon system requirements. Efforts will identify, characterize, study, analyze, test, and develop Precision Guided Munition (PGM), platform, communications and Fuze technologies to increase range, lethality, effectiveness, survivability, and accuracy required to support the Army's Field Artillery modernization objectives.

M330 Obscuration Grenade: qualify an alternative fill as the legacy AN-M8 grenade is restricted for use in contingency operations due to its toxicity. Development of the M330 will ensure the Warfighter has tactical smoke obscuration. Once the smoke fill is qualified, the plan is to conduct Design Verification Testing, product qualification testing, implement the final design into the technical data package, and prepare for LRIP and production. M67 E1 Fragmentation Hand Grenade: replace the legacy M67 with a more IM compliant system which greatly increases the safety of the warfighter as it will make the M67 less susceptible to inadvertent detonation.

## Related program elements

- [0603627A — Smoke, Obscurant and Target Defeating Sys-Adv Dev](https://hitchintel.com/programs/0603627A) (Army)
- [0604117A — Maneuver - Short Range Air Defense (M-SHORAD)](https://hitchintel.com/programs/0604117A) (Army)
- [0305128F — TECH Surveil Counter MEAS EQPT](https://hitchintel.com/programs/0305128F) (Air Force)
- [0604212N — Other Helicopter Development](https://hitchintel.com/programs/0604212N) (Navy)

## Source & machine access

- **Source:** FY2027 Department of the Army RDT&E Budget Justification, Exhibits R-2/R-3, PE 0607131A (PB PB2027); FY2027 NDAA committee marks (as of 2026-07-27).
- **MCP:** `mcp.hitchintel.com` — `budget_get_program_element(pe="0607131A")`.

*HitchAI is an independent intelligence service, not affiliated with the U.S. Department of Defense. Budget figures are requests/estimates, not obligations.*