Federal News
MDA Raises RTX SM-3 Contract Ceiling
March 19, 2026
The Missile Defense Agency (MDA) has significantly increased the contract ceiling with Raytheon Technologies (RTX) for the Standard Missile-3 (SM-3) program to $11.74 billion as of March 2026. This expansion supports production, sustainment, and delivery of multiple SM-3 Block missile variants, including a recent $267 million contract modification to restart the SM-3 Block IB production line and deliver 23 additional interceptors. The contract extension reflects ongoing U.S. and allied commitments to missile defense capabilities through 2029 and beyond, with production expected to continue through 2030.
- Why this matters: The substantial contract ceiling increase signals sustained investment in missile defense systems critical to national and allied security.
- Procurement professionals should note the expanded scope covering production, maintenance, and support of advanced SM-3 variants, including Block IB and Block IIA interceptors.
- Contractors and suppliers can anticipate ongoing opportunities related to missile interceptor manufacturing, sustainment, and associated technologies.
- The contract modifications and production restart indicate a strategic emphasis on cost-effective and operationally proven missile variants alongside newer models.
Agencies
Missile Defense Agency, Department of Defense, U.S. Navy
Vendors
Raytheon Technologies
Contracts
$11.74 billion, $267 million, $3.31 billion total
Locations
Sources
- MDA Awards $8.41 Billion Ceiling Increase For RTXβs SM-3 Contract - Defense Daily · Defense Daily · Mar 18
- MDA Raises RTX SM-3 Missile Contract Ceiling to $11.74B - GovCon Wire · GovCon Wire · Mar 19
- RTX Wins $267 Million To Restart SM-3 IB Line, Deliver 23 Interceptors - Defense Daily · Defense Daily · Mar 13
- US Boosts SM-3 Block IB Interceptor Inventory With New Production Order · The Defense Post · Mar 17