FY27 Senate NDAA Bill Highlights

研报英文原文证据摘录

FY27 Senate NDAA Bill Highlights

Deutsche Bank

Research

North America Industry Date

United States 17 June 2026

Defense

Industrials Industry Update

Aerospace & Defense

Electronics

Scott Deuschle

Bottom Line Research Analyst

While the final enacted version of the FY27 NDAA could look different, we think the +1-212-250-2014

below items are worth highlighting from our review of the FY27 Senate NDAA bill

that recently was released by SASC.

n Solid rocket motor dual sourcing requirements - 40% for PAC-3 & SM-6:

The bill imposes explicit secondary sourcing mandates for solid rocket

motors in two of the most capacity-constrained missile franchises: PAC-3

MSE and SM-6. For PAC-3, at least 40% of FY27 motor procurement must

come from an additional qualified supplier, with funding execution tied to

certification of compliance by the Secretary of Defense. For SM-6, the

requirement is phased: 20% secondary sourcing in FY28, 30% in FY29, and

40% by FY30 for Mk 72/Mk 104 motors. Funds cannot be fully obligated

without demonstrating diversified sourcing, forcing qualification and

scale-up of alternative propulsion suppliers. As LHX is the current sole-

source supplier of SRMs for both missile families, we see this as a negative

as it relates to the ultimate ceiling of its revenue relative to peak production

if these provisions are passed into law. While dual sourcing efforts have

already been underway and were well known, we think the percentage

threshold requirements are relatively high at 40%. Potentially positive for

companies like Northrop, Avio, Anduril, GD, and others that may be capable

of serving as alternative sources.

n Limitations on contract relief for poor performance on multi-year missile

deals: The bill sharply restricts DoD’s ability to provide relief for contractor