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Military Sentinel, Washington – The U.S. Navy has awarded propulsion manufacturer Ursa Major two contracts valued at a combined $137 million to develop and qualify advanced solid rocket motors for upcoming next-generation missile programs. Announced in October 2026, the awards target critical capacity gaps within the defense industrial base by introducing alternative merchant suppliers for tactical missile propulsion.
The agreements focus on developing specialized rocket motors for the Compact Air-to-Air Missile (CAAM) and the medium-range variant of the Naval Modular Missile (NMM). By fostering competition and expanding the industrial supplier pool beyond traditional prime contractors, the naval service aims to alleviate long-standing bottlenecks in solid rocket motor production.
Details of the Development
The dual contract package splits funding between two distinct propulsion development efforts. The larger agreement allocates $91 million for a 7-inch solid rocket motor tailored to the CAAM initiative. The second agreement provides $46 million for a 10-inch motor designed to power the medium-range version of the NMM.
Both contracts function as development and qualification awards rather than immediate full-rate production orders. The framework covers initial concept design, rigorous motor testing, manufacturing feasibility studies, and preparations for engineering and manufacturing development. Ursa Major has estimated a timeline of approximately three years to complete the design and qualification phases required before the motors can be cleared for operational service.
What the System Brings
The propulsion systems under development incorporate advanced manufacturing and design techniques intended to maximize performance within restricted volume constraints. For the CAAM application, the 7-inch motor utilizes proprietary propellant loading methods designed to pack high energy density into tight internal dimensions while maintaining low unit production costs.
The 10-inch motor for the NMM medium-range variant is engineered specifically for compatibility with existing vertical launch systems utilized aboard surface combatants. Both designs emphasize scalability and high-rate manufacturing potential, addressing the historical difficulty of rapidly surging tactical propellant production during periods of heightened demand.
Program Background and Industrial Base Context
For decades following the Cold War, consolidation within the defense sector left the United States with only a small number of primary solid rocket motor manufacturers. This concentrated industrial base struggled to meet surging procurement quantities for modern tactical weapons. In response, the Department of Defense and the Navy have actively sought to onboard new merchant suppliers through targeted technology investments and prototyping partnerships.
The recent contracts build upon prior collaboration between the propulsion firm and defense agencies, including modernization initiatives supported by the Office of Strategic Capital. As the Navy moves forward with next-generation weapon concepts like the NMM family and CAAM, diversifying the propulsion vendor base is viewed as essential to preventing supply chain choke points.
Why It Matters
Securing qualified merchant suppliers for tactical propulsion directly impacts the armed forces’ ability to replenish stockpiles and field advanced munitions at scale. Traditional missile primes often rely on vertically integrated supply chains, which can limit flexibility when major procurement orders expand.
By injecting independent merchant motor developers into the pipeline, the military aims to drive down unit costs and accelerate delivery timelines. Successful qualification of these 7-inch and 10-inch rocket motors will position the manufacturer to compete for lucrative production subcontracts once the respective missile programs finalize their prime contractor selections and enter manufacturing phases.
