Orbital ATK is to complete development of the next-generation 120mm multipurpose round for Abrams tanks.

The 30-month development and qualification deliverable award from the U.S. Army is worth $45 million. It includes three options for initial and full-rate production that could bring the total contract value to $119 million.

"Our development of advanced ammunition types provides combat overmatch for the soldier," said Dan Olson, vice president and general manager for Orbital ATK's Armament Systems Division of the Defense Systems Group. "When fielded, AMP will greatly improve the Abrams' main-gun ammunition capabilities by closing the ATGM (anti-tank guided missile) and wall breach capability gaps."

The AMP round consolidates four existing 120mm rounds -- for defeating bunkers or light armored vehicles, for example -- thus reducing the logistics burden.

Orbital ATK said that with the new round a gunner will use the tank's fire control system to program the AMP fuze for a specific operational mode.