SM-3 Sustaining Engineering and Product Support IDIQ Ceiling Increase

The Missile Defense Agency has awarded a noncompetitive ceiling increase of $8,410,280,000 to Raytheon (RTX) for the Standard Missile-3 (SM-3) Sustaining Engineering and Product Support (SE&PS) indefinite-delivery/indefinite-quantity contract HQ0851-21-D-0001. This modification raises the total IDIQ ceiling from $3,331,830,000 to $11,742,110,000 to support munitions acceleration, production capacity expansion, and sustainment for SM-3 Block IA, IB, and IIA variants. The scope of work includes technical baseline engineering, obsolescence mitigation, cybersecurity enhancements, flight test support, and product support services for both the United States and Foreign Military Sales partners. Performance is conducted in Tucson, Arizona, and Huntsville, Alabama, with a period of performance extending from October 30, 2020, through October 29, 2029. The award was made on a sole-source basis under FAR 6.302-1(a)(2)(iii)(A) and 10 U.S.C. 3204(a)(1) because Raytheon is the original design agent and the only source with the necessary proprietary technical data and intellectual property. The government determined that competing the requirement would result in substantial duplication of costs. The contract utilizes a hybrid pricing structure, including Firm-Fixed-Price, Cost-Plus-Incentive-Fee, and Cost-Plus-Fixed-Fee arrangements. Key regulatory requirements include FAR 52.244-5 regarding competition in subcontracting and DFARS 252.219-7004 for small business subcontracting plans.