April 8 (Reuters) - U.S. rocket propulsion start-up Ursa

Major said on Monday it had signed a contract with the United

States Navy to develop and test solid fuel rocket engines in an

effort to develop a next generation of solid rocket motor for

the Navy's standard missile program and expand and enhance the

U.S. rocket motor industrial base.

The agreement is part of a series of prototype engine

contracts being awarded by the U.S. Navy as it seeks to address

surging demand for such engines and expand the industrial base

for manufacturing them.

X-Bow Systems (Crossbow), another new U.S. entrant, has also

been awarded a contract, according to a person familiar with the

matter. L3 Harris Technologies which owns Aerojet

Rocketdyne, the incumbent maker of the Mk 104 solid rocket

motors, used aboard the Navy's Standard Missiles, was also

awarded a development and testing contract, two people

familiar with the situation said. The people spoke on condition

of anonymity to discuss private deliberations.

X-Bow and L3 Harris declined to comment.

The contract with the Naval Energetics Systems and

Technologies (NEST) Program will see Ursa Major develop a new

design and manufacturing process for the Navy's Mk 104

dual-thrust rocket motor, per a statement from Ursa Major.

The Mk 104 is considered the workhorse of the U.S. Navy's

Standard Missile programs which are deployed in both offensive

and defensive assignments, including the Standard Missile-2,

Standard Missile-3, and Standard Missile-6.

Manufacturing of rocket propulsion motors has traditionally

been dominated by a limited number of large defense contractors,

including Northrop Grumman ( NOC ) and L3 Harris' Aerojet

Rocketdyne.

While these prototype contracts awarded by the Navy are

small, they can provide a pathway to bigger contracts for

upstarts such as Ursa Major and X-Bow should the effort succeed

in furnishing the Navy with new enhanced motors.

Ursa Major did not disclose the value of the contract.

The Navy would gain a larger field of manufacturers and

bolster supply, important at a time of multiple global

flashpoints including Russia's ongoing invasion of Ukraine, as

well as potentially bringing down costs through greater

competition.

"Our new approach to manufacturing SRMs allows Ursa Major to

quickly develop high-performing motors at scale, driving volume

and cost efficiencies to address this critical national need,"

said Ursa Major Founder Joe Laurienti.

Other areas of the U.S. military are aiming to do similar

things with motor procurement and manufacturing: Reuters

reported in February the Defense Department was close to

awarding an engine contract to Ursa Major.