Northrop Grumman Awarded $34.4 Million Navy Contract Modification for Helicopter Components

Northrop Grumman Systems Corp. (NYSE: NOC) has been awarded a $34,388,301 modification to an existing contract with the U.S. Navy. The adjustment increases the ceiling for the procurement of specialized components for the military's helicopter fleet.

Contract Details

The award modifies a pre-existing firm-fixed-price, indefinite-delivery/indefinite-quantity (IDIQ) contract. This action raises the total potential value of the contract, allowing the Navy to order additional kits and parts for its UH-1Y and AH-1Z helicopters.

The procurement specifically covers Link-16 A-Kits and B-Kits, which are tactical data link systems that enhance situational awareness and communication. The modification also includes provisions for associated spare parts, systems engineering, program management, and logistics support. The contracting activity is the Naval Air Systems Command, located in Patuxent River, Maryland.

Scope and Timeline

The modification expands the contract quantities by:

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• Eight UH-1Y Link 16 A Kits
• Nine AH-1Z Link 16 A Kits
• Seventeen Link 16 B Kits

Work will be distributed across several U.S. locations, including Chicago, Illinois (23%); Woodland Hills, California (22%); and Salt Lake City, Utah (20%). The project is scheduled for completion by March 2027.

Financial Implications

Consistent with the nature of an IDIQ contract, no funds were obligated at the time of the award. Instead, funding will be allocated on a per-order basis as the Navy issues specific task orders against the contract.

For investors, this modification signals a continued revenue stream for Northrop Grumman's helicopter component programs, though the revenue will be recognized over time as individual orders are placed, rather than as a lump sum. It reinforces the company's role as a key supplier for critical U.S. military aviation platforms.