Pentagon Signs Seven-Year Framework Deals to Expand SM-3 Interceptor Production

The Pentagon signed two seven-year framework agreements Friday with Boeing and RTX to expand production of critical components for the Standard Missile-3, the Navy's primary ship-launched interceptor against ballistic missiles. The deals aim to stabilize supply and lock in sustained output of an interceptor that has seen heavy use since 2024.

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. Both variants operate with the Aegis Ballistic Missile Defense System to destroy incoming missiles outside the atmosphere. The frameworks allow Boeing to begin building components before a contract is in place, while the three parties negotiate a multiyear deal. The long-term commitment is intended to give suppliers enough certainty to invest in added capacity.

"These agreements ensure our Warfighters get the munitions they need to win," said Michael P. Duffey, under secretary of war for acquisition and sustainment. "We are stabilizing our supply chains, expanding munitions production and putting our entire defense industrial base on a wartime footing." 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. "The SM-3 is an essential part of the layered air and missile defense architecture that protects the U.S. and its allies worldwide." 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 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.

The seven-year term signals a Pentagon commitment to a sustained production ramp rather than a one-time buy, offering suppliers the certainty needed to invest in added capacity. 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.

The parties will continue negotiating a multiyear deal while Boeing begins early component work under the frameworks. Terms including dollar values and production quantities remain to be disclosed.