Jane Edwards 
- Raytheon has secured an MDA contract for SM-3 Block IIA production
- The noncompetitive contract action has a base value of approximately $745.4 million
- The 2026 Navy Summit on Aug. 27 will explore AI, digital engineering and more
RTX subsidiary Raytheon has received a $745.4 million contract from the Missile Defense Agency to manufacture and assemble Standard Missile-3 Block IIA all-up rounds for the U.S. government and Japan’s defense ministry.
As the Department of War continues to invest in layered missile defense capabilities, government and industry leaders will gather at the Potomac Officers Club’s last DOW-focused summit of 2026. Attend the 2026 Navy Summit on Aug. 27, and join senior Navy officials and executives to discuss artificial intelligence, digital engineering, unmanned systems, network modernization, shipbuilding and other priorities shaping the future maritime force. Sign up now!
What Is the Scope of the MDA Contract?
DOW said Friday Raytheon will produce and assemble SM-3 Block IIA all-up rounds to support foreign military sales case requirements under the noncompetitive, undefinitized contract action.
Work will take place in Tucson, Arizona, and Huntsville, Alabama, through Feb. 28, 2031.
MDA is obligating $275.6 million in fiscal 2026 procurement funds and $277.7 million in FMS funds.
The award adds to a series of recent SM-3-related contract actions for the RTX business. In March, the company secured an $8.41 billion ceiling increase to a previously awarded MDA contract supporting the SM-3 program, raising the total contract value from approximately $3.33 billion to $11.74 billion. That followed a 2025 contract worth $1 billion from MDA to deliver SM-3 Block IB all-up rounds, and a 2024 award of a potential $1.94 billion contract from the agency to manufacture SM-3 Block IIA interceptors.
What Is SM-3 Block IIA?
SM-3 Block IIA is a next-generation interceptor that Raytheon is developing in cooperation with Japan.
The variant features larger rocket motors than earlier SM-3 versions, extending its capacity to defend broader areas against ballistic missile threats. It also carries an enlarged kinetic warhead that has enhanced the system’s search, discrimination, acquisition and tracking capabilities against advanced and emerging threats.
The interceptor completed an intercept of an advanced ballistic missile target in its first live test in early 2017, following two earlier non-target flight tests, and it took part in a NATO-led exercise in 2019 that simulated real-world threat scenarios. SM-3 Block IIA serves as the centerpiece of the European missile defense architecture and is slated for deployment in Poland to complete Phase 3 of the European Phased Adaptive Approach.
