USN Awards $3.1bn Contract for 24 E-2D Advanced Hawkeyes

US Navy E-2D Advanced Hawkeye 168594 ‘AB-603’ from Carrier Airborne Early Warning Squadron 126 (VAW-126) ‘Seahawks’ lands on the USS Harry S Truman (CVN 75) on April 1, 2019. A contract has been awarded to Northrop Grumman for a further 24 E-2Ds. US Navy/Mass Communication Specialist Seaman Apprentice Donovan M Jarrett

NORTHROP GRUMMAN has been awarded a multi-year procurement contract worth in excess of $3.1 billion for 24 E-2D Advanced Hawkeye aircraft.  The $3,169,708,972 deal, awarded to the company on April 10 by US Naval Air Systems Command (NAVAIR), is a modification to definitize the previously awarded E-2D Lot 7 advance acquisition contract to a multi-year fixed-price-incentive-firm contract.  It provides for acquisition by the US Navy of 24 full-rate production E-2Ds, covering Lots 7 through to 11, which will be produced over fiscal years 2019 to 2023.  Work is expected to be completed in August 2026.  An initial $943,584,001 in US Navy fiscal year 2019 aircraft procurement funding was released at the time of contract award.

This is the second multi-year production (MYP) contract awarded to Northrop Grumman.  The US Navy awarded the first in 2014 for the production of 25 E-2Ds.  Congress later increased the number to 26 aircraft.  Captain Keith Hash, E-2/C-2 Airborne Tactical Data Systems Program Office (PMA-231) programme manager, said: “This is a critical element in providing the next generation of world class command and control aircraft to the fleet.  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 US Naval power at sea by providing our fleet the information they need to accurately plan and win the fight today and tomorrow.”

NAVAIR says the savings for MYP II are projected to be $410.6 million (11%) over the five years of the contract.  The first MYP contract saved $586.6 million, a 13.9% saving compared to the cost of five single-year procurement contracts.