- Northrop Grumman received a contract worth up to $1.196 billion to produce three E-2D Advanced Hawkeye Block II aircraft for the U.S. Navy.
- Naval Air Systems Command awarded the undefinitized production contract, with work continuing through December 2031.
- The E-2D serves as the Navy’s primary airborne early warning, battle management, and network command aircraft for carrier strike groups.
- Initial funding of $583.4 million from Fiscal Year 2026 Navy aircraft procurement has been obligated at contract award.
- The aircraft will strengthen the Navy’s ability to detect cruise missiles, aircraft, drones, and maritime threats over long distances.
The U.S. Navy has awarded Northrop Grumman Systems Corp., Aerospace Systems a not to exceed $1.196 billion undefinitized cost, no fee contract to manufacture, deliver, and support three E-2D Advanced Hawkeye Block II airborne early warning aircraft. According to the Naval Air Systems Command (NAVAIR), headquartered at Patuxent River, Maryland, the program will continue through December 2031 and is funded through Fiscal Year 2026 Navy aircraft procurement appropriations.
NAVAIR stated that $583.39 million in FY2026 aircraft procurement funding has been obligated immediately following contract award. The acquisition was awarded on a sole source basis under 10 U.S. Code 2304(c)(1), which permits noncompetitive awards when only one responsible source is capable of fulfilling the government’s requirements.
Deep Technical & Strategic Context Analysis
The E-2D Advanced Hawkeye Block II is widely regarded as one of the world’s most capable airborne early warning and command and control aircraft. Built around the AN/APY-9 UHF AESA radar, the aircraft can simultaneously detect and track aircraft, cruise missiles, low observable targets, ballistic missile threats, unmanned systems, and surface contacts across hundreds of miles. Unlike conventional surveillance aircraft, the Hawkeye also functions as an airborne battle management node, distributing targeting information through Cooperative Engagement Capability (CEC), Link 16, and emerging Joint All Domain Command and Control (JADC2) architectures.
The platform has become increasingly important as the U.S. Navy prepares for potential high intensity operations in the Indo Pacific and other contested theaters where long range anti ship missiles, stealth aircraft, and drone swarms present growing challenges. Operating from aircraft carriers, the E-2D extends the sensor horizon well beyond that of shipboard radars, allowing carrier strike groups to identify threats earlier and coordinate intercepts using systems such as the SM 6, Standard Missile family, and the F-35C Lightning II. The latest Block II configuration also incorporates improved computing power, expanded networking capacity, and software upgrades designed to support future distributed maritime operations.
The awarded agreement is an undefinitized contract, meaning work can begin before all final pricing terms are negotiated. This procurement approach is typically used when maintaining production schedules is operationally critical. A cost, no fee structure reimburses allowable costs but does not include an additional profit fee during the undefinitized phase, helping the government accelerate procurement while limiting financial exposure until contract terms are finalized.
Contract Breakdown & Details
Contract Value
- Maximum contract value: $1.196 billion
- Contract type: Cost, no fee, undefinitized production contract
- Prime contractor: Northrop Grumman Systems Corp., Aerospace Systems
- Aircraft ordered: Three E-2D Advanced Hawkeye Block II aircraft
- Completion date: December 2031
Funding
- Initial obligation: $583.394 million
- Funding source: Fiscal Year 2026 Navy Aircraft Procurement
Contracting Authority
- Awarding agency: Naval Air Systems Command (NAVAIR)
- Contract number: N0001926C1017
- Competition: Sole source under 10 U.S. Code 2304(c)(1)
Workshare By Location
- Melbourne, Florida: 29.88%
- St. Augustine, Florida: 17.68%
- Liverpool, New York: 13.85%
- Indianapolis, Indiana: 4.95%
- Largo, Florida: 3.66%
- San Leandro, California: 2.52%
- Woodland Hills, California: 2.42%
- Aire sur l’Adour, France: 2.09%
- Rolling Meadows, Illinois: 1.72%
- Wimborne Minster, Dorset, United Kingdom: 0.01%
- Various U.S. locations: 21.22%
Why This Procurement Matters
The E-2D fleet represents one of the Navy’s highest priority aviation capabilities because it serves as the command and sensing hub for carrier air wings. As potential adversaries field increasingly sophisticated long range missiles, electronic warfare systems, and unmanned aircraft, maintaining production of the Hawkeye ensures the Navy preserves its ability to detect, classify, and coordinate responses against complex, multi domain threats.
The latest procurement also supports the broader modernization of the Navy’s carrier strike groups by integrating next generation networking technologies that connect fighters, destroyers, submarines, and joint forces into a common operational picture. As the Navy continues expanding distributed maritime operations and joint force integration, the E-2D remains one of the key enablers of future U.S. naval air power.
