The Missile Defense Agency raised the contract ceiling on RTX's SM-3 sustainment-and-services contract to $11.74 billion on March 18, 2026 — an $8.41 billion increase from the prior ~$3.33B level. Performance runs through October 29, 2029. Work locations: Tucson, Arizona and Huntsville, Alabama. Coverage from GovCon Wire.
Scope
RTX delivers management, materials, and services to sustain the SM-3 interceptor family for U.S. and Foreign Military Sales partners. SM-3 uses a hit-to-kill kinetic technique against short- to intermediate-range ballistic threats. Block IB and Block IIA variants offer enhanced propulsion and seekers.
Why a 3.5x ceiling jump now
- Heavy SM-3 expenditure during 2024–25 Israel and Red Sea engagements drained inventory faster than planned
- Aegis Ashore at Romania + new Poland site need stockpile replenishment
- FMS demand from Japan (SM-3 IIA co-production partner) and Gulf states is rising
What to do
- Solid-rocket-motor and seeker firms: Tucson supply chain is the chokepoint — production-rate-increase opportunities here
- Huntsville test/sustainment subs: ceiling jump implies more T&E throughput