The Pentagon has signed two framework agreements with Boeing and RTX to increase production of SM-3 components, aiming to accelerate deliveries of the Navy’s ship-launched ballistic missile interceptors.
The arrangements cover avionics and ejector assemblies that Boeing supplies to Raytheon, an RTX business, for both the SM-3 Block IB and the newer Block IIA interceptors. Both variants operate with the Aegis Ballistic Missile Defense System to engage ballistic missiles outside the atmosphere, according to the department.
“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 the Pentagon’s announcement. “We are stabilizing our supply chains, expanding munitions production and putting our entire defense industrial base on a wartime footing.”
SM-3 components targeted for faster output
The frameworks run seven years and allow Boeing to begin building parts before individual contracts are finalized, while the parties negotiate a multiyear production deal. Officials said the long-term commitment is meant to give suppliers confidence to invest in added capacity. Financial terms and quantities were not disclosed by the Pentagon or Boeing.
“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. He called the SM-3 a key element of layered air and missile defense for the United States and allies.
The approach echoes a seven-year agreement Boeing announced in April to triple output of PAC-3 Missile Segment Enhancement seekers, part of a broader Pentagon push to secure supply from critical subcontractors alongside prime contractors. Similar concerns over production timelines have surfaced as Rheinmetall ATACMS production ramp up is expected to take years.
Rising demand and recent contracts
Earlier this month, the Missile Defense Agency awarded Raytheon a 745 million dollar contract to produce fully assembled SM-3 Block IIA interceptors for the United States and Japan.
Demand surged after Navy destroyers first used SM-3s in combat in April 2024 to help counter an Iranian ballistic missile attack on Israel. Additional intercepts have followed, including those conducted during Operation Epic Fury.
The Center for Strategic and International Studies estimated the SM-3 inventory at 414 as of December 2025. A May assessment from the center put wartime expenditures between 130 and 250 missiles and cautioned that replenishment could take years.
Congress has also moved to keep the lower-cost Block IB production line active after the Missile Defense Agency proposed ending new purchases in the fiscal 2025 budget request.