Northrop Grumman Secures $863 Million U.S. Army Contract for Artillery Guidance Kits

Northrop Grumman Systems Corp. (NYSE: NOC) has secured a significant contract from the U.S. Army valued at up to $863 million to produce precision guidance kits for artillery. The award provides the defense giant with a long-term production order for technology that enhances the accuracy of conventional munitions.

Contract Details

The U.S. Army awarded the firm-fixed-price, indefinite-delivery/indefinite-quantity (IDIQ) contract, which has a ceiling of $862,848,000. The agreement covers the manufacture, inspection, testing, and delivery of M1156 precision guidance kits and their variants.

The contract has an estimated completion date of Sept. 3, 2031. According to the announcement, the Army Contracting Command in Newark, New Jersey, is the contracting activity. Specific work locations and funding will be determined as individual orders are placed.

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Technology and Market Position

The M1156 precision guidance kit is a device that replaces the standard fuze of a 155mm artillery projectile, effectively converting it into a GPS-guided munition. This capability allows for greater accuracy, reducing the number of rounds required to engage a target and minimizing collateral damage.

Northrop Grumman was the sole bidder for the contract, which was solicited via the internet. This position as the only respondent underscores the company's specialized role in producing this type of advanced military hardware. The kits are manufactured at the company's facility in Minneapolis.