MDA Raises RTX SM-3 Missile Contract Ceiling to $11.74B

RTX has secured an $8.41 billion ceiling increase to a previously awarded Missile Defense Agency contract to support the Standard Missile-3, or SM-3, program.

According to a Department of War announcement released March 18, the modification raises the total contract value from approximately $3.33 billion to $11.74 billion.

What Work Will RTX Perform Under the Contract?

RTX will provide management, materials and services to sustain SM-3 interceptor systems used by the U.S. government and foreign military sales partners. Work will be performed in Tucson, Arizona, and Huntsville, Alabama, through Oct. 29, 2029.

The award builds on prior contracts for the SM-3 program, including a $1.94 billion contract in 2024 to produce SM-3 Block IIA interceptors for the United States and Japan and a $1 billion award in 2025 for SM-3 Block IB all-up rounds.

What Is the SM-3 Interceptor?

The SM-3 interceptor is a defensive missile designed to destroy short- to intermediate-range ballistic threats using a hit-to-kill technique that relies on kinetic force rather than an explosive warhead.

The system can be deployed on land or sea, including aboard Navy ships and at Aegis Ashore sites. Variants such as the Block IB and Block IIA feature enhanced propulsion and targeting capabilities to address evolving and advanced missile threats.

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