A contracting team led by BAE Systems that includes Northrop Grumman (NYSE: NOC) and L-3 Communications‘ (NYSE: LLL) simulation and training business is competing with Lockheed Martin (NYSE: LMT) for an estimated more than $11 billion contract to build up to 350 training jets for the U.S. Air Force.
Those figures are according to Graham Ruddick of The Telegraph, who writes that “BAE believes its Hawk jet has a strong chance because budget constraints in the US mean the air force is not looking for a brand new aircraft.”
The Hawks would be assembled in the U.S. with around half of component production occurring in the UK, according to the report.
BAE and Northrop first announced their joint pursuit in September 2011, noting that BAE would serve as the prime contractor with Northrop as a manufacturing partner.
The award will support the branch’s T-X program by allocating funds to replace the T-38 trainer. Ruddick said a decision is expected in early 2014 with aircrafts entering full service in 2020.