Pentagon signs seven-year deals with Boeing, RTX to boost SM-3 missile component production

The Pentagon signed two framework agreements on Friday with Boeing and RTX to expand production of critical components for the Standard Missile-3 (SM-3), the U.S. Navy's primary ship-launched interceptor against ballistic missiles.

The agreements cover avionics and ejector assemblies that Boeing supplies to prime contractor Raytheon, an RTX business, for both the SM-3 Block IB and the newer Block IIA variants. Both missile variants operate with the Aegis Ballistic Missile Defense System to destroy incoming missiles outside the atmosphere.

"These agreements ensure our Warfighters get the munitions they need to win," said Michael P. Duffey, under secretary of war for acquisition and sustainment, in a Pentagon release. "We are stabilizing our supply chains, expanding munitions production and putting our entire defense industrial base on a wartime footing."

Key Details

• Duration: The frameworks run for seven years.
• Flexibility: Boeing can begin building components before a contract is in place, while the three parties negotiate a multiyear deal.
• Purpose: The long-term commitment is intended to give suppliers enough certainty to invest in added capacity.
• Financial terms: Neither the Pentagon nor Boeing released dollar figures or quantities.

"This gives us a clear demand signal to build and deliver SM-3 interceptors at the levels needed to counter threats," said Bob Ciesla, vice president of Boeing Precision Engagement Systems, in a company statement. "The SM-3 is an essential part of the layered air and missile defense architecture that protects the U.S. and its allies worldwide."

Broader Context

The approach mirrors a seven-year deal Boeing struck in April to triple production of PAC-3 Missile Segment Enhancement seekers, part of a broader Pentagon effort to lock in supply from key subcontractors alongside prime contractors.

Earlier this month, the Missile Defense Agency awarded Raytheon a $745 million contract to produce fully assembled SM-3 Block IIA interceptors for the United States and Japan.

Demand and Inventory

Demand for the interceptor traces back to April 2024, when Navy destroyers first fired SM-3s in combat, helping to thwart an Iranian ballistic missile attack on Israel. Far more interceptors have been launched since, including those fired in Operation Epic Fury.

• The Center for Strategic and International Studies estimated the SM-3 inventory at 414 as of December 2025.
• A May analysis from the center put wartime expenditures between 130 and 250 missiles and warned that replenishment will take years.

Congress has stepped in to keep the Block IB line open — the cheaper of the two variants covered by Friday's agreements — after the Missile Defense Agency proposed ending new purchases in the fiscal 2025 budget request.

About the Author

Michael Scanlon is a defense journalist covering air and space warfare. A former U.S. Air Force A-10 crew chief, he has supported land and sea programs for the U.S. Army, Navy, Marine Corps, and Coast Guard.