Northrop Secures $273M Navy, UK Submarine Missile Compartment Support Contract

Northrop Grumman (NYSE: NOC) has received a potential five-year, $273.1M contract from the U.S. Navy to produce tactical underwater launcher hardware for the common missile compartment to be installed on U.S. and U.K. submarines.

The company will also provide technical, component and full-scale engineering services to support CMC development and production efforts, the Department of Defense said Tuesday.

The Navy will obligate $39.6M in fiscal year 2019 shipbuilding and conversion funds on the cost-plus incentive-fee, cost-plus-fixed-fee, firm-fixed-price contract while the U.K. government will allocate $24.4M in FY 2019 funds.

Northrop’s marine systems business will perform tasks in California, Florida, Washington, Georgia, Connecticut, Rhode Island, Virginia and England.

Contract work is expected to conclude by March 31, 2024.

General Dynamics (NYSE: GD) is building the CMC for U.S. Ohio replacement submarine and the U.K.’s Successor underwater ballistic-missile vessel as part of a $2.9B contract the Navy awarded in 2012.

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