Northrop Grumman garners $3.2 billion multiyear E-2D Hawkeye aircraft production contract

NAVAL AIR SYSTEMS COMMAND, PATUXENT RIVER, Md. U.S. Navy officials selected Northrop Grumman Corp. for the purchase of 24 E-2D Advanced Hawkeye aircraft under a multiyear procurement (MYP) contract valued at approximately $3.2 billion.

The fixed-price-incentive-firm contract also includes an option for nine additional foreign military sales (FMS) aircraft, Northrop Grumman officials say. Production of the 24 U.S. Navy aircraft funded by the five-year contract is expected to be complete in 2026.

“This is a critical element in providing the next generation of world class command and control aircraft to the fleet,” says Capt. Keith Hash, E-2/C-2 Airborne Tactical Data Systems Program Office (PMA-231) program manager. “The use of the MYP contract allows a substantial savings over the use of single-year contracts and helps us fulfill our mission to increase U.S. Naval power at sea by providing our fleet the information they need to accurately plan and win the fight today and tomorrow.”

Under the current program of record Northrop Grumman has delivered 37 E-2D to the U.S. Navy to date. In addition to the production and sustainment of the E-2D, Northrop Grumman will deliver a series of capability upgrades. The third upgrade is slated for release in fall 2019 and includes an capability to significantly extend the aircraft’s endurance.

This is the second contract awarded to Northrop Grumman, Navy officials say. The Navy awarded the first in 2014 for the production of 25 E-2D AHE aircraft. Congress later increased the number to 26 aircraft.

The savings for MYP II are projected to be $410.6 million (11 percent) over the five years of the contract, Navy officials state in a release. The first MYP contract saved $586.6 million, a 13.9 percent savings compared to the cost of five single-year contracts.

Topics covered in this article