Log In Get Started
Stock Markets April 14, 2026 05:24 PM

Northrop Grumman Secures $475.3M Modification for Glide Phase Interceptor Work

Missile Defense Agency increases Prototype Project OTA to $1.31 billion; accelerated schedule targets June 2028 completion

By Sofia Navarro NOC
Northrop Grumman Secures $475.3M Modification for Glide Phase Interceptor Work
NOC

Northrop Grumman Systems Corp. received a $475.3 million contract modification from the U.S. Department of War, raising the total value of its Prototype Project Other Transaction Agreement to $1.31 billion. The Missile Defense Agency awarded the modification on April 3 under statutory authority, obligating $174.1 million at the time of award and assigning the Dahlgren, Virginia office as the contracting activity. The work will continue on the Glide Phase Interceptor design concept on an accelerated timeline, with estimated completion in June 2028.

Key Points

  • Northrop Grumman received a $475.3 million modification, raising its Prototype Project Other Transaction Agreement to $1.31 billion from $832.8 million.
  • The Missile Defense Agency awarded the modification on April 3 under authority of 10 U.S. Code 4022(a)(2)(B), with the contracting activity located in Dahlgren, Virginia.
  • At award, the government obligated $174.1 million from funds authorized under Section 20003 of Public Law 119-21; work on the Glide Phase Interceptor design concept continues on an accelerated schedule with estimated completion in June 2028.

Northrop Grumman Systems Corp. (NYSE:NOC) has been granted a $475.3 million modification to its existing Prototype Project Other Transaction Agreement, the U.S. Department of War announced. The award raises the agreement's total authorized value to $1.31 billion, up from $832.8 million.

The Missile Defense Agency issued the modification on April 3, invoking authority under 10 U.S. Code 4022(a)(2)(B). The original agreement carries the designation HQ0851-22-9-0002. The contracting activity for the action is the Missile Defense Agency office in Dahlgren, Virginia.

Under the terms of the modification, Northrop Grumman will continue work to develop and refine its Glide Phase Interceptor design concept. The company will pursue that work on an accelerated schedule, with an estimated completion date for the contracted effort set for June 2028.

At the time the modification was awarded, the government obligated $174.1 million. Those funds were drawn from amounts authorized under Section 20003 of Public Law 119-21.

The Glide Phase Interceptor program focuses on developing systems intended to engage hypersonic threats during the glide phase of their flight. The program's stated aim is to provide defensive capabilities against maneuvering, high-speed threats during that portion of their trajectory.

Details at a glance:

  • Contract modification value: $475.3 million.
  • Revised total Prototype Project OTA value: $1.31 billion (up from $832.8 million).
  • Awarding authority: Missile Defense Agency, under 10 U.S. Code 4022(a)(2)(B).
  • Original agreement designation: HQ0851-22-9-0002.
  • Funds obligated at award: $174.1 million from Section 20003 of Public Law 119-21.
  • Contracting activity: Missile Defense Agency, Dahlgren, Virginia.
  • Estimated completion: June 2028.

This modification continues a government-funded prototype effort aimed at advancing interceptor concepts specifically tailored to counter hypersonic glide vehicles during the glide phase of flight. The accelerated schedule and the partial obligation of funds at award are notable program management elements documented in the contract action.

Risks

  • Estimated completion in June 2028 indicates schedule risk - accelerated timelines can complicate development and testing for complex defense systems. This risk affects defense and aerospace contractors.
  • Only $174.1 million was obligated at the time of award, which leaves reliance on future funding actions to support full program execution - a fiscal risk for program continuity that impacts government procurement and defense contractors.
  • Technical uncertainty inherent in designing systems to intercept hypersonic threats during the glide phase - a development risk that has implications for program cost and performance in the defense and aerospace sectors.

More from Stock Markets

Quadra Capital Close to Buying 15 Billion Reais of Former Banco Master Assets from BRB Apr 14, 2026 Maine Legislature Passes First-in-Nation Pause on Large Data Centers Apr 14, 2026 OpenAI Opens Limited Access to GPT-5.4-Cyber as Rival Mythos Raises Alarm Apr 14, 2026 NewHold Investment Corp IV Prices $175 Million IPO, Units to Begin Trading on Nasdaq Apr 14, 2026 Mexican equities retreat - S&P/BMV IPC falls 0.94% as consumer and industrial names slide Apr 14, 2026