Northrop Grumman Secures $4.8B U.S. Army Countermeasure Deal

Northrop Grumman Systems Corp. has secured a $4.84 billion U.S. Army contract for the full-rate production of the Common Infrared Countermeasure system, extending defense manufacturing operations through September 2035.

According to an Investing.com report, the long-term agreement secures production capacity for advanced missile defense technology designed to protect military aircraft from heat-seeking threats.

Contract Terms and Structure

The agreement is structured as a firm-fixed-price, indefinite-delivery/indefinite-quantity contract, running through Sept. 30, 2035. Under an IDIQ contracting vehicle, the military places individual task orders over time rather than receiving all goods at once, giving the Army flexibility in procurement timing while locking in pricing terms with the manufacturer.

According to the Investing.com report, the Rolling Meadows, Illinois-based company was the sole bidder for the multi-billion-dollar project.

Management and Production Locations

The Army Contracting Command, located at Redstone Arsenal in Alabama, is overseeing the contract. Specific work locations and funding allocations will be determined individually with each subsequent order placed under the agreement.

The Common Infrared Countermeasure system is a defensive avionics suite utilized to automatically detect, track, and jam incoming infrared-guided missiles, safeguarding rotary-wing and fixed-wing aircraft across active military fleets.