Prime Contractor: Medium Direct Fire Support Weapons: SAAB Bofors Dynamics.
Heavy weapon thermal sight: BAE Systems Australia.
Light Weight Automatic Grenade Launcher (LWAGL): A contract is yet to be signed for the LWAGL.

This phase of the project will deliver two new types of direct fire support weapons to Army's Infantry Battalions, Special Forces and RAAF Airfield Defence Guards. The first of the systems to be delivered is the M3 Carl Gustaf medium direct fire support weapons fitted with a thermal sight. The second system is a LWAGL fitted with a night sight and a fire control system.

A contract was signed in November 2009 with SAAB Bofors Dynamics for 437 M3 Carl Gustaf Weapons. The first weapons are due to be delivered in July 2010 and all remaining deliveries will be completed by March 2011.

A contract was signed in December 2009 with BAE Systems Australia for 437 heavy weapon thermal sights for fitment to the M3 Carl Gustaf. The first sights are due to be delivered in April 2010 and all remaining deliveries will be completed by January 2011.

Sixty LWAGLs, with options for further quantities, are being sourced through an open tender process.

There remains a medium risk to the scheduled completion of acceptance testing for the LWAGL due to the system integration required for the program.