Northrop Lands $458M Navy Contract for Submarine Fleet Support Services

Northrop Grumman (NYSE: NOC) has secured a $458 million sole-source contract from the U.S. Navy to provide a range of services that will support ballistic missile submarines over a more than five-year period.

The company’s marine systems business will perform shipyard field operations, hardware production, systems engineering, program management, documentation and logistics under the Columbia and Dreadnought Fleet Ballistic Missile Program for fiscal 2022 to 2026, the Department of Defense said Friday.

The Columbia-class submarines are envisioned to replace the legacy Ohio-class fleet while the Dreadnought vessels are meant to succeed the British navy’s Vanguard fleet of submarines.

Majority of the work will be conducted at the unit’s Sunnyvale, California location while the remaining 12 percent of work will be performed in several U.S. states and the U.K. through Nov. 30, 2027.

The Navy is obligating $76.6 million in shipbuilding and conversion funds for fiscal 2020 to 2022 at the time of award.

The cost-plus-incentive-fee and cost-plus-fixed-fee contract has option line items and is managed by the Strategic Systems Programs.

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