Navy Awarded Ursa Major $137 Million Missile Contracts

The U.S. Navy tapped the defense firm to develop solid rocket motors for two new missile platforms.

Updated on Oct. 14, 2026 in Military

Isometric editorial illustration of a modular cylindrical rocket motor in muted teal and mustard tones, representing defense manufacturing hardware. — The U.S. Navy awarded Ursa Major a $137 million contract to produce modular solid rocket motors for advanced missile systems. AI Illustration. Upload story photo >

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Should the U.S. prioritize increasing domestic production capacity for critical military missile components?

The U.S. Navy has awarded Colorado-based Ursa Major $137 million in contracts to develop propulsion systems for advanced missile programs. The project aims to improve missile supplies for warships and carrier air wings.

Why it matters

The Navy initiated this development to bolster stockpiles against modern air and missile threats posed by Russia and China. This move addresses concerns regarding high missile expenditure rates observed in regions like the Middle East.

The contracts include $90.8 million for the Compact Air-to-Air Missile and $40 million for a 10-inch motor for the Naval Modular Missile. This follows a separate July 2026 contract for MK 104 rocket motor designs.

The players

U.S. Navy

The maritime branch of the United States Armed Forces responsible for naval warfare operations and fleet maintenance.

Ursa Major

A Colorado-based defense company specializing in the development of rocket propulsion systems and engines.

The details

The Naval Modular Missile uses a 10-inch solid rocket motor engineered for high-rate production to meet air defense and surface strike requirements. This design allows for the integration of various payloads and booster combinations to enhance modularity across the fleet.

July 2026: Ursa Major secured a contract for MK 104 motor development.
October 2026: The $137 million missile propulsion contracts were formally announced.

Political Context

Opponents of increased military spending argue that such contracts lack sufficient oversight and may result in cost overruns without guaranteeing immediate strategic superiority. Advocacy groups often push for prioritizing existing stockpile refurbishment over long-term research and development costs.

These contracts represent a shift toward securing industrial supply chains, which may impact taxpayer funding allocations in future federal budgets. The development of these missile platforms is intended to ensure long-term defense readiness rather than causing immediate changes to domestic policy or taxation.

The takeaway

The U.S. Navy is prioritizing domestic production to address modern geopolitical threats and supply chain vulnerabilities. Policymakers and industry analysts will likely monitor these developments to determine if current funding levels are sufficient to reach full-scale production goals.