Stock Markets September 4, 2026 05:23 PM

Northrop Grumman Secures $508.5M Missile-Test Support Contract; Additional Submarine Turbine Award Totals Up to $253.3M

Two sole-source defense awards span missile flight-test logistics and maintenance for Virginia-class submarine turbine generators

By Derek Hwang
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Northrop Grumman Corp. received a $508.5 million noncompetitive contract from the U.S. Department of Defense to provide flight test support for ballistic missile targets and integrated logistics for Missile Defense System testing. Separately, the company was awarded a $111.4 million contract, with options that could raise its value to $253.3 million, to maintain and overhaul ship service turbine generators supporting the Virginia-class attack submarine fleet.

Northrop Grumman Secures $508.5M Missile-Test Support Contract; Additional Submarine Turbine Award Totals Up to $253.3M
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Key Points

  • Northrop Grumman was awarded a $508.5 million noncompetitive contract to provide flight test support for ballistic missile targets and integrated logistics support for Missile Defense System testing.
  • The Missile Defense Agency obligated $8.8 million in fiscal 2026 RDT&E funds toward the missile-support contract; work runs from September 2026 through August 2035 in Chandler, Arizona; Corinne, Utah; and Elkton, Maryland.
  • A separate contract valued at $111.4 million was awarded for maintenance and overhaul of ship service turbine generators for the Virginia-class submarine fleet, with options that could increase its value to $253.3 million and work spread across five U.S. locations.

Northrop Grumman Corp. (NYSE:NOC) has been contracted by the U.S. Department of Defense to provide extended flight-test support for ballistic missile targets and to deliver integrated logistics support for Missile Defense System testing, the department announced today. The award is valued at $508.5 million and was made on a noncompetitive basis.

The work covered by the missile-support contract will include services for remaining Intermediate Range Ballistic Missile (IRBM) and Intercontinental Ballistic Missile (ICBM) targets. Contract performance is scheduled to take place in Chandler, Arizona; Corinne, Utah; and Elkton, Maryland, with activity running from September 2026 through August 2035.

The Missile Defense Agency, based in Huntsville, Alabama, awarded the missile-support tasking and has obligated $8.8 million in fiscal 2026 research, development, test, and evaluation (RDT&E) funds toward the effort.


In a separate award, Northrop Grumman Systems Corp. - Marine Systems received a $111.4 million contract to provide maintenance, overhaul, repair, and long-lead material for ship service turbine generators used by the Virginia-class nuclear-powered attack submarine fleet. That agreement is structured as a firm-fixed-price and cost-only, indefinite-delivery/indefinite-quantity contract and carries options that could raise the total contract value to $253.3 million.

Work on the submarine turbine contract is to be carried out across multiple locations: Sunnyvale, California (40%); Norfolk, Virginia (15%); Kittery, Maine (15%); Bremerton, Washington (15%); and Pearl Harbor, Hawaii (15%). The schedule anticipates completion by August 2031, or by August 2034 if all options are exercised.

The Naval Sea Systems Command in Washington, D.C., issued the submarine award on a sole-source basis under 10 U.S. Code 3204(a)(1). At the time of the award, no funds were obligated; funding will be provided on individual orders as they are issued under the contract.


The pair of awards cover distinct elements of defense procurement: one focused on supporting flight testing for ballistic missile targets and missile defense evaluations, and the other on sustaining key propulsion-related equipment for an active submarine class. Contract structures differ between the two awards, with the Missile Defense Agency obligating a portion of RDT&E funds up front for the missile-support work, while the submarine contract will receive funds when individual task orders are placed.

These contracts establish multi-year work streams across several U.S. sites and span both logistics and technical maintenance scopes, with potential option-driven extensions in total value and performance duration.

Risks

  • Funding timing and availability - the submarine contract had no funds obligated at award and will rely on funds being obligated on individual orders, which could affect execution timing and cash flow for defense contractors.
  • Option exercise uncertainty - the submarine award includes options that could raise total contract value to $253.3 million and extend completion to August 2034, meaning final scope and revenue depend on future option decisions.
  • Sole-source and noncompetitive procurement - both awards were issued on noncompetitive or sole-source bases under statutory authority, which can carry programmatic and oversight risks tied to procurement method and performance expectations.

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