NEW YORK, NY, August 18, 2026– The U.S. Department of Defence has signed two framework agreements with Boeing and RTX aimed at ramping up production of critical components for the Standard Missile-3, the Navy’s primary ship-launched interceptor against ballistic missiles, according to an announcement published by the U.S. Department of Defense News Desk.
Both the SM-3 Block IB and IIA missile systems were included in these agreements, dated Aug. 14, and together form the backbone of sea-based missile defense for the United States both domestically and abroad, according to the department. The interceptors function within the Aegis Ballistic Missile Defense System, built specifically to intercept ballistic missiles prior to their impact by destroying them in space.
Boeing said that in the agreements, it will provide avionics and ejector assemblies to Raytheon, an RTX company, and the prime contractor for the SM-3 missile system. These agreements are scheduled to run for seven years, enabling Boeing to prepare the production process before a multi-year production contract is put into place. The Department of Defence, Boeing, and RTX will negotiate these terms, while Boeing will have an advance start on production.
“These agreements ensure our Warfighters get the munitions they need to win,” Michael P. Duffey, Under Secretary of Defence for Acquisition and Sustainment, said in the department’s announcement. “We are stabilizing our supply chains, expanding munitions production and putting our entire defense industrial base on a wartime footing.”
It was attributed by the department to the success of its Acquisition Transformation Strategy, which was intended to eliminate bureaucracy, in making the deals possible, as it allowed officials to deal with suppliers at all levels of industry directly and not just through the prime contractor.
Boeing framed the deal as part of a broader effort to expand its role in missile defense manufacturing. “This gives us a clear demand signal to build and deliver SM-3 interceptors at the levels needed to counter threats,” Bob Ciesla, vice president of Boeing’s Precision Engagement Systems division, said in an official update on Boeing Defense & Space Communications, adding that the missile is a core part of the layered air and missile defense systems protecting the U.S. and its allies.
RTX also confirmed the deal on its RTX Investor & Press Portal, stating that it was based on a framework agreement that the company made with the Pentagon in February to step up production of the SM-3, besides Tomahawk, AMRAAM, and SM-6 missiles.
The deals for SM-3 missiles come after a seven-year framework that the Department of Defense entered into with Boeing and Lockheed Martin this year to triple production of PAC-3 Missile Segment Enhancement seekers, which is part of a wider trend of the Pentagon securing its supplies from subcontractors along with prime contractors amid efforts to replenish its ammunition inventories.
The demand for the SM-3 interceptor has increased significantly since April 2024, after it was used in combat by Navy destroyers to defend against the Iranian missile attack that targeted Israel. More interceptors have been used since then, even during the more recent military operations.
The framework agreements are not agreements themselves but are meant to provide some additional comfort to Boeing and RTX that they can invest in additional manufacturing capacity while the government is obtaining formal multi-layer procurement authorization from the U.S. House Armed Services Committee.
Defence procurement experts point out that the first phase of framework agreements entails a large element of legislative risk. Since framework agreements come before any Congressional appropriations, the contractors who enlarge their facilities and purchase lead-time material prior to entering into the agreements depend upon subsequent budget authorizations. In case Congress postpones multi-year appropriations or redistributes defence appropriation line items within the upcoming NDAA markup sessions, defence primes run the risk of unfunded capital on their balance sheets.
With the department signing more and more framework agreements with suppliers, it can be expected that they will continue to attract the interest of members of Congress and analysts who will question whether this effort leads to any acceleration in the production cycle or only shifts the financial burden to the earlier stage of agreement conclusion.
