SM-6 and AMRAAM multiyear deals land before Congress has fully funded them

On 1 October, the Navy announced an up-to-$24.4 billion multiyear contract for Raytheon's Standard Missile-6 (SM-6), Reuters reported, as fiscal 2027 opened under a continuing resolution (CR), per Breaking Defense. It follows an up-to-$20.7 billion AMRAAM award, made 25 September, that the Pentagon says will nearly double production, per Defense News. Industry executives caution that Congress has not yet appropriated funding for the deals, per Reuters. The multiyear munitions awards are ahead of the money.

The Congressional Budget Office estimates combat operations against Iran cost about $38 billion through 1 August, and that the conflict has consumed one-half to two-thirds of U.S. Patriot, THAAD, SM-3 and SM-6 inventory since June 2025, per Defense News, which reports that rebuilding could take at least five years. Lower tiers are moving: L3Harris announced a THAAD propulsion subcontract from Lockheed Martin valued at $6 billion, excluding escalations. Breaking Defense reports over 150 new military programs face delay under the CR.

1. 25 SepRaytheon wins the up-to-$20.7 billion AMRAAM multiyear, a five-year contract that includes two option years (Defense News).
2. 29 SepL3Harris announces a seven-year THAAD propulsion subcontract from Lockheed Martin, valued at $6 billion excluding escalations (L3Harris).
3. 1 OctFY27 opens under a CR (Breaking Defense); the Navy announces the up-to-$24.4 billion SM-6 multiyear (Reuters, via Defense News).
4. 11 DecThe continuing resolution is set to expire (Breaking Defense).

For security teams at primes and sub-tiers, the award starts the clock, not the appropriation. Some of that footprint is already moving: Raytheon President Phil Jasper said the company keeps investing in its “workforce, supply chain and facilities to rapidly scale production capacity,” per Defense News, and L3Harris says it will build a new THAAD boost-motor facility. Each new hire, site and supplier raises personnel-vetting, facility-security and foreign ownership, control or influence (FOCI) questions. In our view, these programs are a foreign-collection priority, and security review is easy-to-squeeze overhead while an award is signed but not yet funded.

• Tie insider-risk and vetting capacity to the hiring plan.
• Run FOCI checks on each new sub-tier supplier before the first purchase order.
• Bring facility-security review into new sites while they are in design.
• Re-vet suppliers continuously; ownership can change mid-contract.

OBSIDIAN — Counterintelligence is designed for the gap between award and appropriation. It supports continuous insider-risk monitoring and supplier and FOCI vetting, with CI red flags and decisions kept in an audit-ready trail. Insider threat analysts, vetting staff and facility security officers make every determination; the software organizes the evidence. It is NISPOM- and CMMC-aligned and designed for defense industrial base programs that cannot wait for a budget to start vetting.

In July we argued that scale-up is a security event after the Patriot and submarine awards. Reuters places the SM-6 award in a run that includes July's $58.6 billion Patriot interceptor deal. Programs that wait for the money to scale security will end up vetting a workforce and supplier base that already exist.