Program · United States
Standard Missile 2 (SM-2) Program
Ship-launched surface-to-air missile family for fleet air defense.
Updated
Fielded
Timeline1
- FieldedConfirmed
SM-2 medium-range variant deployed
Program and variant milestones. Dates show only the precision the sources give.
Cost to the Government
| Measure | Amount | Source |
|---|---|---|
| Program totals · 1 | ||
| R&D program totalA lifetime program R&D total was not established. Development contracts and shared program budgets are not substituted for that total. | Not established | — |
| Unit costs · 4 | ||
| Unit cost (per round)Business Insider (March 2026, Iran war interceptor costs): 'SM-2s run about $2.1 million each.' Variant and basis not specified; approximate press figure. | $2.1MBasis not stated | Missiles flying across the Middle East: the air defense price tag grows Business Insider · Mar 5, 2026 |
| Unit cost (per round)The War Zone (May 2024), based on Pentagon budget documents of the prior five years, rounded to nearest $10,000: SM-2 Block IIIC conversion kit (Block IIIA/B to IIIC) costs the Navy $2.53M each; Block IIIAZ kit $770,000. | $2.53MThen-year $ | What The Navy's Ship-Launched Missiles Actually Cost The War Zone · May 21, 2024 |
| Block IIIC recurring hardware / missileP-5 FK007 hardware in the SM modification program. Excludes separate canisters and support; not a new-build price for every SM-2 variant or Block IIICU. | $2.526MNominal $; source budget basis | FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2025 · PB2025 request |
| Block IIIC canister / unitSeparate canister line, excluded from the recurring missile hardware figure. | $267,900Nominal $; source budget basis | FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2025 request |
| Quantities · 2 | ||
| U.S. inventoryA current U.S. inventory was not established. Annual procurement, cumulative deliveries and production capacity are not a stockpile count. | Not established | — |
| U.S. procurement quantityNo comparable U.S. procurement quantity was established in this review. | Not established | — |
| Operating costs · 1 | ||
| Annual operations & supportA complete, system-specific annual operating and support cost was not established. Procurement, replacement rounds and contract support are different measures. | Not established | — |
Program totals · 1
- R&D program totalA lifetime program R&D total was not established. Development contracts and shared program budgets are not substituted for that total.Source not recordedNot established
Unit costs · 4
- Unit cost (per round)Business Insider (March 2026, Iran war interceptor costs): 'SM-2s run about $2.1 million each.' Variant and basis not specified; approximate press figure.Missiles flying across the Middle East: the air defense price tag grows Business Insider · Mar 5, 2026$2.1MBasis not stated
- Unit cost (per round)The War Zone (May 2024), based on Pentagon budget documents of the prior five years, rounded to nearest $10,000: SM-2 Block IIIC conversion kit (Block IIIA/B to IIIC) costs the Navy $2.53M each; Block IIIAZ kit $770,000.What The Navy's Ship-Launched Missiles Actually Cost The War Zone · May 21, 2024$2.53MThen-year $
- Block IIIC recurring hardware / missileP-5 FK007 hardware in the SM modification program. Excludes separate canisters and support; not a new-build price for every SM-2 variant or Block IIICU.FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2025 · PB2025 request$2.526MNominal $; source budget basis
- Block IIIC canister / unitSeparate canister line, excluded from the recurring missile hardware figure.FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2025 request$267,900Nominal $; source budget basis
Quantities · 2
- U.S. inventoryA current U.S. inventory was not established. Annual procurement, cumulative deliveries and production capacity are not a stockpile count.Source not recordedNot established
- U.S. procurement quantityNo comparable U.S. procurement quantity was established in this review.Source not recordedNot established
Operating costs · 1
- Annual operations & supportA complete, system-specific annual operating and support cost was not established. Procurement, replacement rounds and contract support are different measures.Source not recordedNot established
Earlier observations · 5
Superseded estimates and prices, each in its original scope and dollar basis.
| Measure | Amount | Source |
|---|---|---|
| Program totals · 1 | ||
| Block IIICU development contractOne development phase, not lifetime SM-2 R&D or an annual expenditure. | $258MNominal $; source budget basis | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Announced Aug 13, 2025 |
| Unit costs · 4 | ||
| Unit cost (per round)FY2021 Navy budget request unit price for SM-2 Block IIIC as reported by The War Zone from official budget documents. This is the cost of the conversion kit that turns existing SM-2 Block IIIA/IIIB missiles into Block IIIC (active radar homing), not a new-build round. Block IIIAZ (Zumwalt) kit: $1.2M. | $2.349MThen-year $ | Here Is What Each Of The Navy's Ship-Launched Missiles Actually Costs The War Zone · Dec 11, 2020 |
| Block IIIC recurring hardware / missile1 | $2.146MNominal $; source budget basis | FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2023 · PB2025 |
| Block IIIC recurring hardware / missile1 | $2.556MNominal $; source budget basis | FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2024 · PB2025 |
| Block IIIC recurring hardware / missile1 | $2.526MNominal $; source budget basis | FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2025 · PB2025 request |
Program totals · 1
- Block IIICU development contractOne development phase, not lifetime SM-2 R&D or an annual expenditure.SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Announced Aug 13, 2025$258MNominal $; source budget basis
Unit costs · 4
- Unit cost (per round)FY2021 Navy budget request unit price for SM-2 Block IIIC as reported by The War Zone from official budget documents. This is the cost of the conversion kit that turns existing SM-2 Block IIIA/IIIB missiles into Block IIIC (active radar homing), not a new-build round. Block IIIAZ (Zumwalt) kit: $1.2M.Here Is What Each Of The Navy's Ship-Launched Missiles Actually Costs The War Zone · Dec 11, 2020$2.349MThen-year $
- Block IIIC recurring hardware / missile1FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2023 · PB2025$2.146MNominal $; source budget basis
- Block IIIC recurring hardware / missile1FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2024 · PB2025$2.556MNominal $; source budget basis
- Block IIIC recurring hardware / missile1FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · figure FY2025 · PB2025 request$2.526MNominal $; source budget basis
1P-5 FK007 hardware in the SM modification program. Excludes separate canisters and support; not a new-build price for every SM-2 variant or Block IIICU.
Development funding is not a round price
The release reports more than 12,000 historical deliveries to U.S. and allied customers combined. That figure is neither current U.S. inventory nor this contract’s quantity.
SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication
Separate the modification variant from later development
The budget isolates Block IIIC recurring hardware and canisters. The later $258M Block IIICU award covers development; it is not added to these unit estimates.
FY2025 Navy procurement budget, line 2356: Standard Missile modifications U.S. Navy · government budget document mirror · Mar 2024 · +1 more
Contracts & purchasing · 1
Ceilings, options and purchase agreements are not spending and are never added together. Obligations are under Contracts.
| Buyer → seller | Status | Value | Qty | Source |
|---|---|---|---|---|
| U.S. Navy → RTX / RaytheonFollow-on engineering, manufacturing, integration and test for Block IIICU all-up rounds, expected through September 2031. Not a production unit cost. | Development award announced | $258M | — | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Aug 13, 2025 |
International buyers · 7
| Country | Qty | Status | Source |
|---|---|---|---|
| AustraliaSM-2 family customer; not evidence of a Block IIICU order or current inventory. | Not verified | Customer named by manufacturer | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Aug 13, 2025 |
| CanadaSM-2 family customer; not evidence of a Block IIICU order or current inventory. | Not verified | Customer named by manufacturer | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Aug 13, 2025 |
| GermanySM-2 family customer; not evidence of a Block IIICU order or current inventory. | Not verified | Customer named by manufacturer | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Aug 13, 2025 |
| JapanSM-2 family customer; not evidence of a Block IIICU order or current inventory. | Not verified | Customer named by manufacturer | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Aug 13, 2025 |
| South KoreaSM-2 family customer; not evidence of a Block IIICU order or current inventory. | Not verified | Customer named by manufacturer | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Aug 13, 2025 |
| NetherlandsSM-2 family customer; not evidence of a Block IIICU order or current inventory. | Not verified | Customer named by manufacturer | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Aug 13, 2025 |
| SpainSM-2 family customer; not evidence of a Block IIICU order or current inventory. | Not verified | Customer named by manufacturer | SM-2 Block IIICU development award, August 13, 2025 RTX release · Seapower republication · figure Aug 13, 2025 |
Open research: Current U.S. inventory and complete annual operating-and-support costs require additional public evidence. Buyer records are selected examples, not a complete global order book.
What the government budgets and pays for this program, from budget justification books, appropriations, acquisition reports and contract announcements. Each figure states its dollar basis. What contractors were obligated is under Contracts.
Contracts$2.13B obligated since FY2008
Contractors6
- RTX$2.06B 97%
- Lockheed Martin$46.8M 2.2%
- Boeing$13.7M 0.6%
- General Dynamics$3.0M 0.1%
- HII$355K 0.0%
- BAE Systems$35K 0.0%
Awards17
- HII Mission Technologies Corp.IGF::CT::IGF PROGRAM SUPPORT SERVICES FOR STANDARD MISSLE SM-6U.S. Navy · Delivery Order · Sep 5, 2014$355Kobligated
- RTXFISCAL YEAR 2013 THROUGH FISCAL YEAR 2017 U.S. NAVY, OTHER GOVERNMENT AGENCIES, AND FOREIGN MILITARY SALES STANDARD MISSILE (SM) ENGINEERING AND TECHNICAL SERVICES.U.S. Navy · Definitive Contract · May 31, 2013$276Mobligated · up to $322M ceiling
- RTXSTANDARD MISSILE-2 DEPOT AND INTERMEDIATE LEVEL MAINTENANCE, ALL-UP-ROUND RECERTIFICATIONS, SM-2 AND SM-6 SPECIAL MAINTENANCE TASKS, AND FOREIGN MILITARY SALES SM-2 REPAIRS AND MAINTENANCE.U.S. Navy · Definitive Contract · Feb 4, 2013$135Mobligated · up to $102M ceiling
- RTXRDT&E LOE FOR SM PROGRAMSU.S. Navy · Definitive Contract · Mar 7, 2012$41.3Mobligated · up to $41.3M ceiling
- RTXFY11 STANDARD MISSILE-2 (SM-2) BLOCK IIIB ALL UP ROUND (AUR) PRODUCTIONU.S. Navy · Definitive Contract · Sep 26, 2011$208Mobligated
- BAE Systems Information and Electronic Systems Integration Inc.PATRIOT OPERATOR TACTICS TRAININGU.S. Army · Purchase Order · Dec 21, 2010$35Kobligated · up to $35K ceiling
- RTXLONG LEAD MATERIALS FY09 SM-2 BLOCK IIIBU.S. Navy · Definitive Contract · May 28, 2009$445Mobligated · up to $463M ceiling
- Lockheed MartinFMS REQUIREMENT FOR MK 41 VLS PRODUCTS TO TURKEY - TK-P-SDA AND AUSTRALIA AT-P-LCQU.S. Navy · Definitive Contract · Mar 20, 2009$46.8Mobligated
- RTXFY09 ENGINEERING&TECHNICAL SERVICESU.S. Navy · Definitive Contract · Nov 20, 2008$232Mobligated · up to $335M ceiling
- RTXTAS::17 1804::TAS SM-2 BLK IIIA/IIIB FY08 PRODUCTION. INCLUDES ALL-UP-ROUND MISSILES, AN/DKT-71A TELEMTRIC DATA TRANSMITTING SETS (TDTS'S), SECTION LEVEL SPARES, POST PRODUCTION SPARES, SHIPPING CONTAINERS, AND ASSOCIATED DATA. MOU FUNDS IN THE AMOUNT OF $22,386 WERE OBLIGATED AT AWARD AND ARE NOT INCLUDED IN ACTION OBLIGATION BOX ABOVE. TOTAL ACTION OBLIGATION AT AWARD IS $418,180,319.U.S. Navy · Definitive Contract · Sep 30, 2008$440Mobligated · up to $440M ceiling
- RTXSPECIAL MAINTAINENCE TASKS FY 08-11U.S. Navy · Definitive Contract · Sep 16, 2008$47.9Mobligated · up to $73.5M ceiling
- General Dynamics Information Technology200505!047487!1700!N63394!PORT HUENEME DIVISION !N0017804D4012 !A!N! !Y!0016 ! !20050201!20060131!067641597!067641597!099312725!N!ANTEON CORPORATION !3211 JERMANTOWN ROAD !FAIRFAX !VA!22030!77140!019!04!TUCSON INTERNATIONAL!PIMA !ARIZONA !+000001368806!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !234 !STANDARD MISSILE 2 (SM 2) !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N63394!0001! !U.S. Navy · Delivery Order · Apr 30, 2008$3.0Mobligated · up to $0 ceiling
- RTXSM-2 BLOCK IIIBU.S. Navy · Definitive Contract · Mar 14, 2008$71Kobligated · up to $602M ceiling
- RTX200602!060222!1700!N00024!NAVAL SEA SYSTEMS COMMAND !N0002405C5341 !A!N! !N! !P00002!20051003!20100512!794598573!794598573!001339159!N!RAYTHEON MISSILE SYSTEMS COMPA!1151 E HERMANS RD !TUCSON !AZ!85706!77000!019!04!TUCSON !PIMA !ARIZONA !+000036862686!Y!N!000000000000!1410!GUIDED MISSILES !A2 !MISSILE AND SPACE SYSTEMS !234 !STANDARD MISSILE 2 (SM 2) !811310!E! !3! ! !H! ! !99990909!B! ! !A! !D!U!J!1!001!N!1A!Z!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00024!0001! !U.S. Navy · Definitive Contract · Dec 18, 2007$13.5Mobligated · up to $0 ceiling
- RTXMK 20 MOD 1 CANISTERU.S. Navy · Definitive Contract · Nov 30, 2007$27.5Mobligated
- BoeingENGINEERING SERVICESU.S. Army · Definitive Contract · Nov 13, 2007$13.7Mobligated · up to $751K ceiling
- RTXENGINEERING AND TECHNICAL SERVICES IN SUPPORT OF STANDARD MISSILE RDT&E PROGRAMSU.S. Navy · Definitive Contract · Nov 8, 2007$196Mobligated · up to $236M ceiling
Obligations are signed USAspending prime-contract actions coded to this program, FY2008 to date, credited to the company that received each action. Obligations are money committed, not company revenue.