Missile Defense Agency Selects Northrop Grumman and Lockheed to Advance Next Generation Interceptor

March 23, 2021

In two separate competitive cost-plus-award fee, cost-plus-fixed-fee contract and cost-plus-incentive-fee awards, the Missile Defense Agency selected Northrop Grumman Systems Corp. in Chandler, Arizona, and Lockheed Martin Corp. in Huntsville, Alabama to perform technology development and risk reduction of the Next Generation Interceptor (NGI) All-Up-Round capable of surviving natural and hostile environments while countering emerging threats.

“Allowing a technology development phase will help ensure that the NGI is an efficient and effective part of an integrated Missile Defense System solution by permitting the Department of Defense to further analyze requirements and make necessary adjustments in preparation for the product development phase,” the contract announcement stated.

Northrop’s total value of their contract is $3.93 billion, including a base of $2.63 billion with options of $1.30 billion. Lockheed’s award is $3.69 billion, including a base of $2.44 billion with options of $1.25 billion if funded through the full base period. The initial program funding limitation for both contracts combined is $1,600,000,000 through fiscal 2022.

Work will be performed in Sunnyvale, California; Chandler; and Huntsville from March 2021 through May 2026. Fiscal 2021 research and development funds in the amount of $291,930,500 are being obligated on this award. The Missile Defense Agency is Huntsville, Alabama, is the contracting activity.

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