Northrop Grumman Wins $198M E-2D Hawkeye Contract

Key Contract Details

Northrop Grumman Systems Corp. has secured a significant contract valued at $198 million. The award from the U.S. Department of War is for the supply of power amplifier module spares for the E-2D Advanced Hawkeye aircraft. This delivery order falls under a pre-existing basic ordering agreement.

Scope and International Involvement

The contract specifies the purchase of 608 power amplifier module spares. All production and work will take place at Northrop Grumman's facility in Melbourne, Florida. The project has an expected completion date of February 2029. The agreement also includes Foreign Military Sales to Japan, highlighting international defense partnerships.

Financial Implications

Funding for the contract totals $97,019,900 at the time of the award. This amount includes $64,307,666 from Navy working capital and $32,712,334 from Foreign Military Sales funds. These funds will not expire at the end of the current fiscal year. The Naval Supply Systems Command managed the non-competitive award.

Summary

This contract reinforces Northrop Grumman's position as a key supplier for the E-2D Hawkeye program. It provides a stable long-term revenue stream and supports military readiness for both the U.S. Navy and its allies. The market will view this as a positive indicator of the company's operational strength.

FAQ

Q: What is the total value of the Northrop Grumman contract?
A: The contract has a ceiling price of $198 million.

Q: What specific parts are being supplied?
A: Northrop Grumman will supply 608 power amplifier module spares for the E-2D Hawkeye aircraft.

Q: Does this contract involve other countries?
A: Yes it involves Foreign Military Sales to Japan.

Source: Investing.com