# Surface Combatant Cmbt Sys Eng — Program Element 0604307N

**Program element:** 0604307N  
**Component:** U.S. Navy  
**Appropriation:** 1319 — RDT&E, Navy  
**Budget Activity:** 5 — System Development & Demonstration  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/programs/0604307N

## Summary

U.S. Navy funding falls 19% to a $425.1M request in FY2027 (down from a FY2026 peak). In the FY2027 defense authorization, the House funded it in full; the Senate funded it in full; House appropriators funded it in full. Lockheed Martin leads the industry work.

## Funding profile

| Fiscal Year | Estimate Type | Amount ($M) |
|---|---|---|
| FY2025 | Actual | 512.6 |
| FY2026 | Enacted | 524.1 |
| FY2027 | Request | 425.1 |
| FY2028 | Outyear | 417.7 |
| FY2029 | Outyear | 391.7 |
| FY2030 | Outyear | 315.0 |
| FY2031 | Outyear | 318.0 |

> Estimate types are not summed — the profile mixes actuals, enacted law, the request, and outyear projections.

## Congressional marks (FY2027)

| Stage | Marked ($M) | Change ($M) |
|---|---|---|
| Request | 425.1 | — |
| House NDAA (HASC) | 425.1 | +0.0 |
| Senate NDAA (SASC) | 425.1 | +0.0 |
| House Approps (HAC-D) | 425.1 | +0.0 |

> FY2027 NDAA authorization marks, as of 2026-07-27. Not appropriations or final law.

## Projects (4)

| Project | Title | FY2025 actual | FY2026 enacted | FY2027 request | Move |
|---|---|---|---|---|---|
| 1447 | Surf Combatant Combat System Imp | 419.3 | 322.0 | 377.3 | +17% |
| 1111 | Integrated Combat System (ICS), | 83.0 | 102.0 | 41.5 | −59% |
| 3357 | Aegis Training Improvement Program | 10.2 | 9.0 | 6.2 | −31% |
| 9999 | Congressional Adds | 0.0 | 91.2 | 0.0 | −100% |

> Projects are the summable leaves: the program element total is their sum, never added to it.

### Project 1447 — Surf Combatant Combat System Imp

AEGIS Development Support is the foundation that maintains the Research and Development Land Based Test Facilities, Technical Design Agent (TDA), Commercial Off The Shelf (COTS) hardware engineering, and Program Management services required to support the development and integration efforts required to effectively design, test and certify, Combat System computer programs. Starting in FY26, this line includes the Combat System Test Bed (CSTB) efforts, which support model development designed to reduce testing requirements. AEGIS BL 9.2.2 delivered in FY21 to TI-12 hardware ships, integrated previous CSL capabilities plus Surface Electronic Warfare Improvement Program (SEWIP) BLK 2 integration (auto association); MH-60R integration; Advanced Training Doman; Boundary Defense Capability; Integrated Air and Missile Defense (IAMD) mission planner; Above Water Sensor Coordinator; Agile Moondog, Sirocco, Sundog part 1, Silent Squall part 1, and Vortex; Advanced Calibration Experiment; Cyber enhancements (cyber resource services, boundary proxy service, Security Information and Event Management (SIEM), network device integrity, update manager); and BMD 5.1.3.1 (MDA-developed). BL 9.2.2 delivered the previously listed capabilities plus warfighting improvements derived from operations in the Red Sea to remaining TI-12H ships in FY24. BL 9.2.2 will deliver previously listed capabilities with further threat-based modernization improvements derived from Red Sea operations to TI-12H ships in FY25. (Effort Completes in FY25) AEGIS Capability Package (CP) 2022, delivered in FY23, builds upon previous CSL capabilities, integrating Multi Mission Signal Processor (MMSP)-Restoration (AMOD DDG only); AEGIS Linear Processing System (ALPS); High-Energy Laser with Integrated Optical-Dazzler and Surveillance (HELIOS); SM-2 Blk IIIC initial capability; Agile Firestorm; Mk 38 Mod 4 Engineering Operational Sequencing System (EOSS) integration; and BMD 5.1.4 (MDA-developed) capabilities. CP 2022-2 delivered to DDG 91 to support its modernization test program in FY24. Dependent on SEWIP BLK 3 Integration effort. CP 2022-2 was delivered to DDG 91 to support its modernization test program in FY24. Dependent on SEWIP BLK 3 Integration effort.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** Lockheed Martin (247.8, 66%), NRL (11.3, 3.0%), NAWC (9.3, 2.5%), BAE Systems (6.8, 1.8%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| AEGIS DEVELOPMENT SUPPORT | 67.7 | 76.4 | 48.9 |
| AEGIS CAPABILITY PACKAGE 2024 | 40.0 | 0.0 | 0.0 |
| BL 9 DESTROYER CONTINUOUS WARFIGHTING IMPROVEMENTS | 35.2 | 82.7 | 91.4 |
| BL 10 AEGIS FLT IIA & III DESTROYER CONTINUOUS WARFIGHTER IMPROVEMENTS | 173.2 | 158.1 | 112.5 |
| BL 5/7 DESTROYER UPGRADES | 24.1 | 4.8 | 3.9 |
| COMBAT SYSTEMS TEST BED (CSTB) | 23.5 | 0.0 | 0.0 |
| TASK FORCE CYBER AWAKENING (TFCA) | 32.3 | 0.0 | 0.0 |
| COLLABORATIVE IAMD PLANNING PROGRAM (CIPP) | 3.3 | 0.0 | 0.0 |
| AEGIS DEVELOPMENTAL TESTING / OPERATIONAL TESTING (DT/OT) | 20.0 | 0.0 | 0.0 |
| PAC 3 - MSE Navy | 0.0 | 0.0 | 120.6 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project 1111 — Integrated Combat System (ICS),

MK 6 MOD X Computing Infrastructure (CI) delivers the developmental efforts and prototypes to enable future delivery of Infrastructure as a Service (IaaS) in support of all surface combatants (e.g. DDG, DDG(X), CVN, LPD, LHD, and LHA). IaaS provides hatch able hardware abstracted from software, enabling upgrade outside modernization periods (agility) to more ships (capacity). The MK 6 MOD X CI is a foundational element of the surface Navy's Integrated Combat System (ICS) System supporting all future ship classes. Top Level Requirements (TLR) were validated in the Initial Capabilities Document for the Future Surface Combatant Force. Software Factory (SW Factory) provides a Continuous Integration/Continuous Delivery (CI/CD) pipeline for software where combat system applications are developed, tested, certified, and fielded to the Fleet at speed. The AEGIS and Ship Self Defense System (SSDS) computer programs will be re-factored into a single ICS computer program. Provides rapid combat system development, test, certification, and authorization; more frequent delivery, and faster turnaround of Fleet feedback into working software and fielding to the IaaS-enabled fleet.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** Lockheed Martin (10.5, 25%), Booz Allen (5.7, 14%), SOLUTE (5.4, 13%), Northrop Grumman (4.5, 11%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| MK 6 MOD X COMPUTING INFRASTUCTURE (CI) | 25.2 | 23.7 | 24.7 |
| SOFTWARE (SW) FACTORY | 57.9 | 78.3 | 16.7 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project 3357 — Aegis Training Improvement Program

The AEGIS Training Improvement project provides enhancements and upgrades to the Total Ship Training Capability (TSTC) components within the combat system to address needs for increased training capability and functionality in conjunction with AEGIS Capability Packages. These enhancements will address current and future training requirements by implementing new functionality to enable individual warfighters and distributed battle groups to engage in more complex training requirements to support fleet-required training certification events. Capability development and integration are related to Integrated Air and Missile Defense, Underwater, Surface, and other warfare areas to increase lethality and survivability. Capability enhancements and upgrades include the development of reusable common components that can be leveraged by other combat systems, and/or the integration of reusable common components developed by the TSTC Battle Force Tactical Training (BFTT) Program and Ship Self Defense System (SSDS) MK2 TSTC Training Improvement programs to meet AEGIS combat system training requirements. TSTC provides realistic joint warfare training across the spectrum of armed conflict, which is foundational to achieving overmatch, and provides realistic unit-level team training in all warfare areas (e.g., Naval Integrated Fire Control-Counter Air (NIFC-CA) and BMD missions to support IAMD). TSTC provides ships' Commanding Officers and Battle Group/Battle Force Commanders with the ability to conduct coordinated, realistic, high-stress, combat system-level team training as an integral part of the Afloat Training Organization. Continued development is required to integrate new capabilities and interfaces at the speed of relevance to provide training for AEGIS and SSDS combat system capability upgrades, and to address the Fleet's Live, Virtual, and Constructive (LVC) Fleet Training Wholeness initiative. This modernization for decisive advantage is needed to support the DoW Training Transformation Plan, the Chief of Naval Operations Fleet Response Plan, and the Commander United States Fleet Forces Command Fleet Readiness Training Plan. The Advanced Training Domain (ATD) is being developed to combine BFTT and the AEGIS Combat Trainer System (ACTS) into a common system that integrates with AEGIS BL 9.2.2AF, and SSDS BL 11.x AF.

**Named R-3 performers** (share of this project's FY2027 R-3 total, so they need not reach 100%)**:** BAH/NRL (0.4, 6.7%), TMB (0.1, 1.8%).

| Activity (R-2A) | FY2025 | FY2026 | FY2027 |
|---|---|---|---|
| AEGIS Training Improvement and Integration | 7.7 | 7.0 | 5.6 |
| Fleet Training Wholeness | 2.5 | 2.0 | 0.7 |

> R-2A activities carry the prior, current and budget year only — no five-year plan. Coverage is partial, so count them, never total them.

### Project 9999 — Congressional Adds

PATRIOT ADVANCED CAPABILITY 3 (PAC-3) Development Integration and test supports the integration of Patriot Advanced Capability-3 (PAC-3) missile system into the Aegis Combat System. This integration will significantly enhance the warfighting capabilities of the U.S. Navy by providing an expanded battlespace, improved threat defeat timelines, and a layered defense against advanced air and missile threats. The effort includes the following key components: 1. Software Integration: Development and integration of software modifications to the Aegis Weapon System to effectively control and employ the PAC-3 missile. This includes adapting existing fire control logic, developing new engagement protocols, and ensuring seamless data exchange between Aegis and the PAC-3 system. 2. Missile Modifications: Development of a compatible radio system for the PAC-3 missile to enable secure and reliable communication with the Aegis Weapon System to enable missile guidance. Includes funding to adapt the PAC-3 missile system to the maritime environment in order to pass environmental testing and safety qualification. 3. Mk-41 VLS Adaptation: Development of a canister for the PAC-3 missile which is compatibility with the Mk-41 Vertical Launching System (VLS) currently deployed on Aegis destroyers. This includes mechanical, electrical, and software modifications to ensure safe and reliable launch from the VLS.

## Where the FY2027 request goes

| Category | Share | $M |
|---|---|---|
| Industry primes | 77% | 327.6 |
| Government labs & warfare centers | 18% | 78.2 |
| Other / unspecified | 4.5% | 19.3 |

**Top named industry performers:** Lockheed Martin ($258.3M, 61%), NRL ($11.3M, 2.6%), NAWC ($9.3M, 2.2%).

> R-3 exhibit contract funding, not USAspending obligations.

## Mission & acquisition strategy

AEGIS Development Support is the foundation that maintains the Research and Development Land Based Test Facilities, Technical Design Agent (TDA), Commercial Off The Shelf (COTS) hardware engineering, and Program Management services required to support the development and integration efforts required to effectively design, test and certify, Combat System computer programs. Starting in FY26, this line includes the Combat System Test Bed (CSTB) efforts, which support model development designed to reduce testing requirements.

The Acquisition Strategy plays a critical role in supporting the development and improvement of combat systems, which is essential to the success of the project mission. The project mission aims to deliver a robust and effective combat system that meets the needs of the US Navy. The Combat System Engineering Agent executes their mission for legacy and current ACS development through the PEO IWS 1.0 AEGIS Fielding and Sustainment contract. This contract provides the necessary resources and support for the development and improvement of combat systems.

## Related program elements

- [0603662D8Z — Networked Communications Capability](https://hitchintel.com/programs/0603662D8Z) (Defense-Wide)
- [0604880C — Land Based SM-3 (LBSM3)](https://hitchintel.com/programs/0604880C) (Defense-Wide)
- [1208248SF — Space Domain Awareness/Planning/Tasking SW](https://hitchintel.com/programs/1208248SF) (Space Force)
- [0901410F — Con-it](https://hitchintel.com/programs/0901410F) (Air Force)

## Source & machine access

- **Source:** FY2027 Department of the Navy RDT&E Budget Justification, Exhibits R-2/R-3, PE 0604307N (PB PB2027); FY2027 NDAA committee marks (as of 2026-07-27).
- **MCP:** `mcp.hitchintel.com` — `budget_get_program_element(pe="0604307N")`.

*HitchAI is an independent intelligence service, not affiliated with the U.S. Department of Defense. Budget figures are requests/estimates, not obligations.*