Standard Missiles Mods

The Standard Missiles Mods program (Line Item 2356) is a Navy weapons procurement initiative focused on the modification and enhancement of Standard Missile (SM) variants, specifically the SM-2 Block IIIAZ and SM-2 Block IIIC. The primary objective of this line item is to ensure that the Navy's surface combatants, including DDG 1000-class ships and AEGIS-equipped vessels, are equipped with up-to-date, effective, and interoperable missile systems capable of addressing evolving maritime threats. The program is managed by the Department of the Navy, with Raytheon and BAE serving as principal contractors for missile and canister production, respectively.

Modifications to the SM-2 Block IIIAZ are designed to support the deployment of DDG 1000-class destroyers, which feature a unique combat system and radar architecture distinct from the AEGIS baseline. The goal is to procure and install modification kits in existing SM-2 Block IIIA rounds, enabling compatibility with the DDG 1000's X-band link and interrupted continuous wave illumination. This ensures that DDG 1000-class ships can utilize the Standard Missile inventory effectively, maintaining their air defense and anti-ship warfare capabilities. Procurement of these modification kits concluded in FY 2022, aligning with the transition of the DDG 1000 program to operational deployment.

The SM-2 Block IIIC is a significant focus of the Standard Missiles Mods line item, having been designated as a Maritime Accelerated Capabilities Office (MACO) program to expedite the fielding of enhanced medium-range active missile capability. Objectives for the SM-2 Block IIIC include providing improved stream-raid performance, enhanced target resolution and missile/target pairing logic, over-the-horizon engagement capability, and increased resilience against electronic attack. These upgrades are intended to ensure that AEGIS cruisers, destroyers, and frigates remain capable of countering advanced aerial and missile threats. The program leverages existing SM-2 inventory and technology to maximize affordability and interoperability across the fleet, with an inventory objective for future units.

In FY 2025, procurement of SM-2 Block IIIC All-Up Rounds (AURs) will be the last to utilize the current guidance section, as the program transitions to a new guidance section following completion of an Engineering Change Proposal (ECP). The FY 2026 budget reflects a reduction in AUR procurement due to this transition, but continues to provide funding for production support, replenishment parts, and test and repair equipment. This ensures continuity in missile availability and supports the replacement of aging or obsolete components within the Navy's missile stockpile.

The line item also addresses several supporting cost elements critical to sustaining the SM-2 program. These include procurement of missile containers for safe transport and storage, installation and checkout equipment, training materials for fleet operations, and the production of updated fleet documentation to reflect new missile capabilities and doctrinal changes. Funding is also allocated to address diminishing manufacturing sources (DMS), which involves procuring life-of-type buys for components that are becoming obsolete due to the advanced age of the missile system and its shared technology base with other legacy programs.

Production engineering and support activities are funded under this line item, encompassing contract and field activity support for missile modification, quality and safety assurance, documentation, and production test support. In FY 2026, increased funding is directed toward incorporating lessons learned from previous production runs and preparing the manufacturing line for the integration of new components, such as a new Target Detection Device (TDD) and updated guidance sections. These efforts are intended to ensure efficient, safe, and high-quality missile production as the program evolves.