$3B and Counting: The S²MARTS OTA’s Impact on Defense Technology
March 25, 2025

Naval Surface Warfare Center (NSWC), Crane Division has achieved a new milestone in its commitment to technological innovation, with the Strategic and Spectrum Missions Advanced Resilient Trusted Systems (S2MARTS) Other Transaction Authority (OTA) surpassing $3 billion in prototype project awards.
American service members dedicate themselves to protecting our nation, relying on cutting-edge, reliable technology to ensure their success. This substantial investment in mission-critical prototyping projects not only supports their efforts but also highlights the vital role of innovation in preserving a strategic advantage on the global defense stage.
“The S²MARTS OTA has enabled us to reach this milestone by allowing us to move fast and have a broader reach to technology providers that we would not have had access to otherwise. This vehicle allows us to support the warfighter by developing prototypes in critical technology areas, such as microelectronics, hypersonics, and many others,” said Shaun Davis, S2MARTS Program Manager at NSWC Crane.
The Impact of $3 Billion on Defense Tech
This substantial funding has accelerated the pace of innovation in defense technology. The flexibility and speed that the OTA provides allow critical technology to be developed in a fraction of the time of traditional contracting methods, making it an attractive approach for government entities seeking innovation.
“We’ve been fortunate to have a contracting department and legal team that have both been innovative in their approach and are willing to lean forward and work closely with our partner, NTSXL, to meet the needs of the DoD. I’m excited to see what the future holds as we continue to grow in many technology areas across NSWC Crane,” said Davis.
Technologies in hypersonics, microelectronics, electromagnetic spectrum operations and strategic systems have benefited from S2MARTS OTA funding. Some of the highest-impact technology focus areas experiencing innovation through the OTA include:
- Hypersonics: Hypersonic weapons are projectiles and missiles that travel faster than the speed of sound by 5 to 25 times. This speed equals approximately one to five miles per second or about 1.6 to 8 kilometers per second.
- Microelectronics: The demand for microelectronics and semiconductors has grown exponentially as the world increasingly relies on technology. These devices are essential for powering everything from smartphones to self-driving cars, and engineers continually discover new ways to miniaturize and improve them.
- Electromagnetic Spectrum Operations: Electromagnetic Spectrum Operations (EMSO) are systems that operate within the electromagnetic spectrum. This can involve attacking, protecting, and managing the electromagnetic environment. These technologies are critical to the DoD because they enable military forces to control and utilize frequencies across all operational domains.
- Strategic Systems: Strategic weapons systems are another type of system that can be utilized by the DoD. They include multiple types of missiles, and any other technologies that are designed to strike an enemy at a specific source or point.
S2MARTS: Expanding DoD Innovation
The S2MARTS OTA is an acquisition vehicle that supports a range of Department of Defense (DoD) critical technologies, including microelectronics, hypersonics, strategic missions and electronic warfare. The Naval Surface Warfare Center, Crane Division, stood up the OTA in 2019 to engage a broader set of innovators to address current and future security threats in the aforementioned technology areas.
“The S2MARTS OTA has proven to be a key enabler in addressing key DoD and U.S. Navy Technology Areas to meet national security challenges,” added Doug Crowe, Senior Vice President of Program Management at NSTXL. “The S2MARTS OTA has demonstrated its strong consortium base can address multiple challenges. Whether it’s addressing the hypersonic weapons that our adversaries are developing and deploying, or ensuring a robust domestic supply of state-of-the-art microelectronics. The resultant use by DoD and U.S. Navy has resulted in over $3B in funding on the S2MARTS OTA .”
Since NSTXL was awarded management of S2MARTS in 2021, the OTA has awarded 54 opportunities across 133 performers. With almost 1,000 members, over 81% of which are non-traditional defense contractors (NTDCs), S2MARTS connects a nationwide community of innovators with fully funded government projects to harness the best technology that industry has to offer.
NTDCs are the lifeblood of the defense technology industry, bringing new ideas and pushing the envelope of innovation while remaining agile enough to support the changing needs of the DoD. The OTA format empowers NTDCs by minimizing the barrier to entry for organizations that are new to government contracting.
The Future of Defense Technology (Moving Forward)
Thanks to the influx of funding for S2MARTS prototyping projects, the U.S. has been positioned with the assets necessary to remain at the forefront of innovation. This significant level of funding will continue to catalyze the development of groundbreaking technologies, such as hypersonic weapons, advanced AI, and quantum computing. The OTA structure consistently fosters collaboration between government, academia and industry, allowing the best of what industry has to offer to move from ideation to prototyping, and eventually into the weapons systems. None of this is possible without the support of S2MARTS members. Learn more about how S2MARTS membership can empower your Non-Traditional organization here.
Overall, the $3 billion in funding that has flowed through the S2MARTS OTA will accelerate the pace of innovation, strengthen domestic supply chains, and ultimately ensure U.S. military dominance in the years to come.
About S2MARTS
The Strategic & Spectrum Missions Advanced Resilient Trusted Systems (S²MARTS), managed by NSTXL, is the premier rapid OT contracting vehicle for the Department of Defense (DoD) in trusted microelectronics, strategic & spectrum mission, and other critical mission areas. The Naval Surface Warfare Center (NSWC), Crane Division created S²MARTS to grow and engage an elite network of innovators, shorten the path to defense prototype development, and advance national security efforts.