Northrop Grumman Secures $71.9M Air Force Contract Modification

Northrop Grumman Systems Corp. has secured a $71.9 million modification to an existing U.S. Air Force contract for software and hardware prototypes, according to a Department of Defense announcement. The award increases the total cumulative value of the contract to $452.9 million.

Contract Details

The modification, designated P00060, is an engineering change proposal to a previously awarded contract (FA8750-23-F-0501). The funds are allocated for several key areas related to the company's InSITE program, including:

• Software and hardware prototypes
• Capability procurement
• Fielding, installation, and support
• Engineering services

This award raises the contract's total face value from its previous level of $381 million, signaling an expansion of the program's scope.

Funding and Logistics

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At the time of the award, $7.2 million in funds have been obligated by the Air Force. This initial funding is drawn from fiscal 2025 research, development, test, and evaluation funds ($3.2 million) and fiscal 2026 operation and maintenance funds ($4 million).

All work related to this modification will be performed in McLean, Virginia, and is expected to be completed by Dec. 3, 2027. The Air Force Research Laboratory in Rome, New York, is the contracting activity.

Context for Investors

This contract modification highlights Northrop Grumman's ongoing role as a critical technology partner for the U.S. military. For a major defense contractor, such modifications are a routine part of long-term projects, reflecting continued development and program requirements. They provide investors with visibility into stable, long-duration revenue streams and reinforce the company's position in advanced defense systems.