US Boosts Tactical Nuclear Deterrence at Sea with BAE Systems SLCM-N Contract.

According to information released by the United States Department of Defense on May 27, 2025, BAE Systems Technology Solutions & Services Inc., based in Rockville, Maryland, has been awarded a contract modification worth $7,967,764 to provide engineering support and facilities integration services for the U.S. Navy’s Sea-Launched Cruise Missile–Nuclear (SLCM-N) program.
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The Sea-Launched Cruise Missile–Nuclear is a strategic capability being reintroduced by the United States to field a low-yield nuclear warhead on naval platforms such as Virginia-class and potentially Los Angeles-class attack submarines still in service, as well as Arleigh Burke-class destroyers (Picture source: US DoD)

This award is an extension of the existing contract N00030-22-C-6007 previously granted to the company. The SLCM-N program, reinstated in response to evolving global strategic threats, aims to reintroduce a non-strategic, sea-based nuclear capability to enhance the U.S. Navy’s deterrence posture. It addresses the expansion of tactical nuclear arsenals by rival powers such as Russia and China and seeks to maintain credible nuclear response options within an increasingly unstable security environment.

The Sea-Launched Cruise Missile–Nuclear is a strategic capability being reintroduced by the United States to field a low-yield nuclear warhead on naval platforms such as Virginia-class and potentially Los Angeles-class attack submarines still in service, as well as Arleigh Burke-class destroyers. Based on the retired TLAM-N Tomahawk, the updated system is expected to incorporate modern advancements in precision guidance and stealth. Although official technical details remain undisclosed, the SLCM-N is believed to have a range exceeding 1,000 kilometers, use inertial and GPS guidance, and follow low-altitude flight paths to evade radar and air defense systems.

Work under this contract will take place between June 1, 2025, and September 30, 2026, and will be distributed across several locations: 50% in Bangor, Washington; 30% in Washington, D.C.; 19% in Kings Bay, Georgia; and 1% in Rockville, Maryland. The full contract value will be obligated at the time of award using Fiscal Year 2025 research, development, test, and evaluation (RDT&E) funds from the U.S. Navy. No funds are expected to expire at the end of the fiscal year. The contract was awarded on a non-competitive basis under 10 U.S. Code 3204(a)(1), which allows for sole-source procurement when only one responsible source is deemed capable. The opportunity had been previously posted on the System for Award Management portal in compliance with acquisition regulations.

The SLCM-N plays a distinct role within the U.S. nuclear deterrence doctrine known as "flexible deterrence." It offers an intermediate option between conventional strike capabilities and high-yield intercontinental ballistic missiles. Designed to be launched from standard vertical tubes or dedicated launch cells, the missile would carry a low-yield nuclear warhead intended for precise targeting in regional conflict scenarios. Its operational value lies in the ability to be deployed covertly, providing a credible deterrent that complicates adversaries' strategic calculations.

The decision to revive this type of nuclear capability has prompted internal debate within the United States. While Congress has supported funding the SLCM-N through multiple defense and appropriations bills, some within the Department of Defense have questioned its operational necessity. Nonetheless, bipartisan support in both chambers, reflected in legislation such as P.L.117-263 and P.L.118-42, has enabled the program to advance. Concurrently, Congressional Budget Office assessments suggest that the full development and deployment of the SLCM-N could cost approximately $10 billion over the long term.

In summary, this contract award reinforces BAE Systems’ ongoing involvement in U.S. naval nuclear deterrence programs and highlights the increasing strategic relevance of low-yield nuclear weapons in the current defense landscape. Through this contract, the Navy secures the technical expertise and integration capacity needed to advance a critical element of its future deterrence structure, adapting to the growing complexity of contemporary geopolitical threats. The SLCM-N is thus positioned as a discreet yet pivotal component of the United States’ maritime nuclear response capabilities.