# Project 0173 — NATO Sea Sparrow

**Program element:** 0604756N — Ship Self Def (Engage: Hard Kill)  
**Project:** 0173  
**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/0604756N/0173  
**Parent:** https://hitchintel.com/programs/0604756N

## Summary

Project 0173 — NATO Sea Sparrow requests $49.8M in FY2027, 17% of the $296.3M requested for program element 0604756N, down 39% on FY2026. 6 R-2A activities decompose the request. PEO IWS 80 is the largest named R-3 performer at $3.6M, 7.2% of the project's FY2027 R-3 total.

## Funding profile

| Fiscal Year | Estimate Type | Amount ($M) |
|---|---|---|
| FY2025 | Actual | 30.9 |
| FY2026 | Enacted | 81.4 |
| FY2027 | Request | 49.8 |
| FY2028 | Outyear | 44.1 |
| FY2029 | Outyear | 34.9 |
| FY2030 | Outyear | 31.8 |
| FY2031 | Outyear | 29.2 |

> Estimate types are not summed. This project is one leaf of PE 0604756N; the PE total is the sum of its projects, never added to them.

## What project 0173 buys

The Evolved SEASPARROW Missile (ESSM) Blk 1 and Blk 2 is a NATO cooperative program, including the U.S., to defend against fast, low-altitude Anti-Ship Cruise Missiles (ASCMs). It enhances shipboard firepower by enabling four ESSMs to be launched from a single MK 41 Vertical Launch System (VLS) cell on DDG and CG. This project supports eight primary efforts: 1. ESSM Systems Integration and Test: ESSM Blk 2 is undergoing Initial Operational Test & Evaluation (IOT&E) Phase 2 and integration on platforms like CVN 79 and LHA 8. It supports AEGIS and SSDS baseline testing and flight trials, using missile simulators and flight test rounds. 2. NATO SEASPARROW Technical Direction Agent (TDA): Provides systems engineering for the MK 57 NATO SEASPARROW System, including the MK 9 Tracker and MK 29 Launcher. These analyses and studies have been completed; future submissions will not include these efforts as they have transitioned to OPN. 3. ESSM Technology Roadmap Analysis & Prototyping support: Ongoing studies seek performance and producibility improvements for ESSM Blk 2 and future variants, exploring new tech and manufacturing methods to support evolving threats. Efforts will align closely to the developing requirements of the Navy Modular Missile. 4. Other Development (Blk 2 Obsolescence and Redesign, Combat System Test Bed (CSTB) and Models: Integrates ESSM Tactical Simulations into the CSTB/ETB to assess self-defense capabilities. Includes redesign studies to address aging components and support future missile models. This line will evolve into future M&S/MBSE tools in support of the next generation missile. 5. Evolved SEASPARROW Missile (ESSM) Blk 2 Software Upgrades: Updates driven by IOT&E findings, flight tests, and system changes will enhance ESSM Blk 2 capability. This line has completed its RDTE phase and will be incorporated in OMN budget. 6. C-Band Telemetry Upgrade: To support testing with multiple simultaneous missile flights, telemetry has shifted from S-band to C-band. The analyses and studies have been completed. Future submissions will not include these efforts. C-band telemeters in production and have replaced S-band type on production line. 7. NATO SEASPARROW Tracker-Illuminator System (TIS) Development: Efforts for previous OT-234 studies and analyses have been completed.

**R-3 lines of work:** Product Development; Support; Test and Evaluation; Management Services.

## Named R-3 performers

| Performer | $M | Share of this project's FY2027 R-3 total |
|---|---|---|
| PEO IWS 80 | 3.6 | 7.2% |
| APL | 3.3 | 6.7% |
| Pt. Mugu | 2.9 | 5.8% |
| RTX / Raytheon | 0.9 | 1.8% |

> Budget-justification contract funding, not obligations. Shares need not reach 100% — unnamed and government work is in the denominator.

## Activities (R-2A) — 6

| Activity | FY2025 | FY2026 | FY2027 | Move | Page |
|---|---|---|---|---|---|
| Adaptable Deck Launcher (ADL) | 9.9 | 44.9 | 31.5 | −30% | [a5](https://hitchintel.com/programs/0604756N/0173/a5) |
| ESSM System Integration and Test | 11.8 | 26.1 | 16.1 | −39% | [a0](https://hitchintel.com/programs/0604756N/0173/a0) |
| NATO SEASPARROW Tracker-Illuminator System (TIS) Development | 1.1 | 1.2 | 1.2 | −1% | — |
| ESSM Technology Roadmap Analysis & Prototyping Support | 1.1 | 0.8 | 0.6 | −33% | — |
| Other Development | 0.9 | 1.2 | 0.5 | −62% | — |
| ESSM Blk 2 Software Upgrades | 6.1 | 7.1 | 0.0 | −100% | — |

> Activities carry the prior, current and budget year only — no five-year plan. In the request year they partition this project exactly; in earlier years they can under-cover it.

### Adaptable Deck Launcher (ADL)

Execution of follow-on test and integration contract will include the following activities: technical data package (TDP) delivery, topside design completion, and continuation of ground testing. In addition, the program will continue the following efforts: systems engineering, safety, qualification, test & evaluation, and transition from…

Full year-by-year narrative: https://hitchintel.com/programs/0604756N/0173/a5

### ESSM System Integration and Test

Enterprise testing continues in FY 2027 using both ESSM Blk 1 and 2. WIT is planned on FORD and AMERICA class platforms, as well as backfit NIMITZ and WASP classes. Platform DT/OT continues, as well as an ESSM Blk 2 OT event on SDTS. ESSM Blk 2 IOT&E finishes on Arleigh Burke Class DDGs. Modeling and Simulation runs for the record are…

Full year-by-year narrative: https://hitchintel.com/programs/0604756N/0173/a0

### NATO SEASPARROW Tracker-Illuminator System (TIS) Development

**FY2027 planned work.** Develop, qualify, test, and integrate modernized technology (equipment/components) as part of MK 9 TIS upgrades. (Transmitter Group, Signal Data processing algorithms, and Antenna/illuminator). Submit a MK 9 TIS upgrade update to the Individual Streamlined Acquisition Plan (ISTRAP) for the NATO SEASPARROW Surface Missile System (NSSMS), develop a Sources Sought Notification (SSN), Statement of Work (SOW), Performance and Compatibility Requirements (P&CR) document, Source Selection Criteria (SSC). Review the proposals and down-select to the final candidate. Development of an First Article Unit (FAU). Additionally, the Government will commence the establishment of a land-based test site (LBTS) at Yorktown, Naval Munitions Command (NMC).

**FY2026 to FY2027 change.** Decrease in FY 2027 funding due to decreased support at land-based test site.

**FY2026 plans — current year.** RDT&E funding is necessary to continue Analysis of Alternatives (AoA) activities and develop recommendation(s), based on data, for improvements to the MK 9 TIS. FY 2026 funding will be allocated for study, analysis, and evaluation completion.

### ESSM Technology Roadmap Analysis & Prototyping Support

**FY2027 planned work.** Begin assessments associated with new variant options. Assessments will include: weapon system requirements, proposed upgrades, digital tools (MBSE & M&S), etc. Studies will cross all major system components and preparation for new development of hardware and software for new variant to be deter.

**FY2026 to FY2027 change.** Decrease of funding in FY 2027 due to decrease of support studies for future variant.

**FY2026 plans — current year.** The ESSM Blk 2 contractors and field activities will continue to perform necessary updates to the Technology Roadmap and conduct specific studies as directed by the Government. Maintenance of the Technology Roadmap must assess all these factors and provide an updated Roadmap periodically as appropriate. Studies will continue to be executed on performance and platform enhancements focused on improving overall missile performance, including modeling and simulation updates for performance studies, predictions and boundary definition for future improvements.

### Other Development

**FY2027 planned work.** This line will evolve into future M&S/MBSE tools in support of the next generation missile.

**FY2026 to FY2027 change.** Decrease in FY 2027 funding due to decreased support.

**FY2026 plans — current year.** APL will refine the ESSM Block 2 models in CSTB and ETB to support final model deliveries for ETB in FY 2027 and begin work on V&V.

### ESSM Blk 2 Software Upgrades

**FY2027 planned work.** This line has completed its RDTE phase and will be incorporated in O&M,N budget.

**FY2026 to FY2027 change.** Decrease of funding in FY27 due to requirement moving to O&M,N.

**FY2026 plans — current year.** The ESSM Blk 2 Prime Contractor will continue to perform necessary software updates, specifically Build 12, that result from performance improvements studies and software deficiencies uncovered during flight test and field-testing results and as a result of new hardware and combat system changes. Additionally, the contractor will complete development of Missile Integration Test Equipment Software and Missile Application Program (MAP) software for the Common Munitions Bit & Reprogramming Equipment (CMBRE) and includes modeling and simulation updates.

## What is NOT on this page

Congressional marks, the R-2 mission description and acquisition strategy, the industry vs government split of the whole request, and related program elements are recorded at **program-element** grain — an NDAA mark lands on a PE, never on a project. They are at https://hitchintel.com/programs/0604756N.

## Source & machine access

- **Source:** FY2027 Department of the Navy RDT&E Budget Justification, Exhibits R-2/R-2A/R-3, PE 0604756N project 0173 (PB PB2027).
- **MCP:** `mcp.hitchintel.com` — `budget_get_program_element(pe="0604756N")`.

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