Northrop Grumman

Northrop Grumman (United States) is involved with production and maintenance of the Minuteman III nuclear Intercontinental Ballistic Missiles (ICBM) for the US nuclear arsenal. It also provides support for the Trident II (D5) system for the US and the UK, in addition to numerous other contracts. 

Company profile

Northrop Grumman, based in the US, provides products, services and solutions in the military aerospace, electronics, information systems and shipbuilding sectors.[a]

In the financial year ending 31 December 2015, Northrop Grumman generated revenues of US$ 23.5 billion (€ 21.5 billion), resulting in an operating income of US$ 3.1 billion (€ 2.8 billion) and a net income of US$ 2.0 billion (€ 1.8 billion).[b]

Contact Information

Website: www.northropgrumman.com
Twitter: @northropgrumman
Facebook: www.facebook.com/NorthropGrumman

Northrop Grumman Corporation
2980 Fairview Park Drive
Falls Church, VA 22042
+1.703.280.2900

Nuclear weapons

 

After acquiring the US company TRW in 2002, Northrop Grumman inherited the leadership of the ICBM Prime Integration Team. This ongoing project was initiated in 1997 and has a total value of US$ 6.5 billion (€ 5.0 billion). Northrop Grumman and its principle partners ATK (now Orbital ATK), Boeing and Lockheed Martin, are responsible for the production and maintenance of the Minuteman III nuclear Intercontinental Ballistic Missiles (ICBM).[i] There are 440 Minuteman III still deployed today.[ii]

Northrop Grumman lost its role as prime contractor to BAE Systems in August 2013.[iii] During the transition period, a partial bridge contract worth US$ 165.0 million (€ 128.3 million)[iv] and extended twice (for US$ 9.9 million (€ 7.4 million) in September 2013[v], and for US$ 13.7 million (€ 10.0 million) in March 2014) was awarded to the company by the US Air Force for sustaining engineering services for the ICBM weapon system through September 2014.[vi]

In August 2014, Northrop Grumman received a one-year contract modification with a value of US$ 12.6 million (€ 9.4 million) under the ICBM partial bridge contract for the Operational Software Sustainment Program.[vii] Another one-year modification awarded in the same month for the sustainment of the propulsion/ground/guidance systems of the ICBM weapon system under the ICBM partial bridge contract had a value of US$ 89.9 million (€ 66.9 million).[viii]

In January 2015, Northrop Grumman was the sole award recipient for a US$ 963.5 million (€ 817.8 million) contract for ICBM ground subsystems support. The five-year contract entails sustainment engineering, technical assistance and programme management services for ground subsystems to include sustainment, assessment, system modification and technical support of ICBMs.[ix]

In May 2015, it received a US$ 99.1 million (€ 88.0 million) contract to provide independent testing and evaluation of developer’s software and hardware for impacts on Minuteman III nuclear safety. Work is expected to be completed by September 2020.[x]

Northrop Grumman has provided the original launcher system of the Trident II (D5) since the 1980s.[xi] In December 2013 it was awarded a US$ 112.9 million (€ 82.5 million) contract for ongoing support to the Trident II (D5) Underwater Launcher System and Advanced Launcher Development Program Support for the US and the UK. It is also expected to advance and support the technological development of cost-effective launcher subsystem architecture for the Ohio-class Replacement Program. The expected completion date is September 2018.[xii] A US$ 60.1 million (€ 47.4 million) contract modification awarded in September 2014 provides for the exercise of options for ongoing support for the Trident deployed SSBN and the SSGN underwater launcher subsystem, engineering refueling overhaul shipyard support, and United Kingdom launcher trainer support. Work is expected to be completed by September 2018.[xiii]

In November 2015, Northrop Grumman Systems – Marine Systems (NGSC-MS) obtained a US$ 31.6 million (€ 29.5 million) contract under the Strategic Systems Program, providing among others a hardware refresh of the Trident II (D5) launcher subsystem components. The maximum value, including the base period and four option years, is US$223.6 million (€ 208.5 million). Completion is expected by September 2016, and September 2020 if all options are exercised.[xiv] In the same month, NGSC-MS was awarded a US$15.6 million (€ 14.5 million) contract to provide support for technical engineering services, design and development engineering for integrating the D5 missile life extension into a missile tube component and full scale test and evaluation engineering, and tactical underwater launcher hardware production to support the development and production for the future Ohio replacement submarine. The aim is to develop a fully qualified launcher subsystem design. The maximum contract value is US$198.0 million (€ 186.0 million) and work will continue through September 2020 if all options are exercised.[xv] A US$ 25.6 million (€ 23.2 million) contract was awarded to NGSC-MS in March 2016.[xvi]

Since 2013 Northrop Grumman along with Boeing, Lockheed Martin and Raytheon, is under contract to conduct trade studies in support of the Air Force Long-Range Standoff (LRSO) missile plans. This line-up is expected to become a four-way competition to build a Long Range Standoff weapon.[xvii] Reportedly the US Nuclear Weapons Council in October 2014 selected the W80-1 thermonuclear warhead for the LRSO nuclear cruise missile, scheduled for deployment in 2027. After modification during a life-extension programme, the warhead will be dubbed W80-4.[xviii] Little information about what the US Air Force is seeking in an LRSO missile is publicly available.[xix]

Northrop Grumman, together with partners Babcock & Wilcox, Aecom and CH2M Hill, is a joint venture partner in National Security Technologies (NSTec). Since 2006, NSTec manages the Nevada National Security Site (NNSS), previously known as Nevada Test Site.[xx] Northrop Grumman was the managing partner, but decreased its interest in NSTec in 2011.[xxi] The exact ownership distribution is not known. Since 2006, NSTec has managed the Nevada National Security Site (NNSS), previously known as the Nevada Test Site.[xxii] The US$ 3.1 billion (€ 2.3 billion) contract includes operation and maintenance of over 500 facilities and laboratories as well as associated infrastructure, vehicles, and IT/communications.[xxiii] The contract expires in September 2016.[xxiv] The NNSS is the only US nuclear test site where subcritical tests are still taking place, and is a critical facility for the modernisation of the US nuclear arsenal. The most recent subcritical test was the Pollux test in December 2012.[xxv] In the financial years 2014 to 2016, the National Nuclear Security Administration (NNSA) is planning the Lyra-series of three scaled-integral implosion experiments; these include Vega, a subcritical experiment in the NNSS complex using a plutonium pit.[xxvi]

Investors

The following financial institutions have made approximately US$ 34,948 million available to this producer since January 2013.

  • AJO
  • Allianz
  • Allstate
  • American Equity Investment Life Holding
  • American Family
  • American International Group (AIG)
  • Ameriprise Financial
  • ANZ
  • AQR Capital Management
  • Aviva
  • AXA
  • Bank of America
  • Bank of New York Mellon
  • Barclays
  • BB&T
  • BlackRock
  • Blaylock Beal Van
  • BNP Paribas
  • Capital Group
  • Capital One Financial
  • Citigroup
  • Comerica
  • Credit Suisse
  • Danske Bank
  • Deutsche Bank
  • Dimensional Fund Advisors
  • Drexel Hamilton
  • Fidelity Investments
  • First Eagle Investment Management

  • Franklin Resources
  • GE Capital Services
  • Geode Capital Management
  • Goldman Sachs
  • Guggenheim Capital
  • Intesa Sanpaolo
  • Invesco
  • Janus Capital Group
  • JPMorgan Chase
  • Knights of Columbus
  • Legg Mason
  • Liberty Mutual Insurance
  • Lloyds Banking Group
  • Lone Pine Capital
  • LSV Asset Management
  • Macquarie Group
  • Manulife Financial
  • MassMutual Financial
  • MetLife
  • Mischler Financial Group
  • Mitsubishi UFJ Financial
  • Mizuho Financial
  • Morgan Stanley
  • National Bank of Abu Dhabi
  • Nationwide Mutual Insurance
  • New York Life Insurance
  • Northern Trust
  • Northwestern Mutual Life Insurance
  • Pacific Mutual
  • PNC Financial Services

  • Power Financial Corporation
  • Prudential (UK)
  • Prudential Financial (US)
  • Royal Bank of Scotland
  • Scotiabank
  • Securian
  • State Farm
  • State Street
  • Sumitomo Mitsui Financial
  • Sun Life Financial
  • SunTrust
  1. Rowe Price
  • Taiwan Business Bank
  • Taiwan Cooperative Financial
  • The Dai-Ichi Life Insurance Company
  • Thrivent Financial
  • TIAA-CREF
  • Toronto-Dominion Bank
  • Travelers
  • UniCredit
  • US Bancorp
  • Vanguard
  • Wellington Management
  • Wells Fargo
  • Western & Southern Financial
  • White Mountains
  • Williams Capital Group

This page was last updated 29 November 2016.

Notes

[a]       Northrop Grumman, “About us”, Website Northrop Grumman (www.northropgrumman.com/about_us/index.html), viewed June 2016.

[b]      Northrop Grumman, “Annual Report 2015”, Northrop Grumman, February 2016.

[i]       Boeing, “Minuteman III”, Website Boeing (www.boeing.com/defense/weapons/minuteman-iii/), viewed June 2016;
WashingtonWatch, “Minuteman III Solid Rocket Motor Warm Line Program (SRMWL)”, Website WashintonWatch (www.washingtonwatch.com/bills/show/ED_81542.html), viewed June 2016;
Globe Newswire, “Minuteman ICBM Commemorates 50 Years of Nuclear Deterrence”, Website GlobeNewswire, 9 January 2013 (globenewswire.com/news-release/2013/01/09/515498/10017538/en/Minuteman-ICBM-Commemorates-50-Years-of-Nuclear-Deterrence.html).

[ii]      Woolf, A.E., “US Strategic Nuclear Forces: Background, Developments and Issues”, Congressional Research Service, 10 March 2016 (www.fas.org/sgp/crs/nuke/RL33640.pdf).

[iii]      Inside the Air Force, “Air Force Chooses BAE As Lead ICBM Contractor, Supplanting Northrop”, Inside the Air Force, Vol.24(31), 2 August 2013.

[iv]     Inside the Air Force, “Air Force Chooses BAE As Lead ICBM Contractor, Supplanting Northrop”, Inside the Air Force, Vol.24(31), 2 August 2013.

[v]      U.S. Department of Defense, “Daily Contracts List – Modification P03894 to Contract F42610-98-C-0001”, U.S. Department of Defense, 26 September 2013 (archive.defense.gov/Contracts/Contract.aspx?ContractID=5142).

[vi]     U.S. Department of Defense, “Daily Contracts List – Modification to Contract F42610-98-C-0001”, U.S. Department of Defense, 27 March 2014 (archive.defense.gov/Contracts/Contract.aspx?ContractID=5250).

[vii]     U.S. Department of Defense, “Daily contracts – Modification 04014 to Contract F42610-98-C-0001”, Website U.S. Department of Defense, 11 August 2014 (archive.defense.gov/Contracts/Contract.aspx?ContractID=5348).

[viii]    U.S. Department of Defense, “Daily contracts – Contract F42610-98-C-0001”, Website U.S. Department of Defense, 4 August 2014 (archive.defense.gov/Contracts/Contract.aspx?ContractID=5343).

[ix]     U.S. Department of Defense, “Daily contracts – Contract FA8214-15-D-0001”, Website U.S. Department of Defense, 14 January 2015 (www.defense.gov/contracts/contract.aspx?contractid=5458).
InsideDefense, “Northrop Gets $964M ICBM Support Contract”, InsideDefense, 15 January 2015;
Malenic, M., “Northrop Grumman signs major ICBM support contract as Boeing studies award challenge”, IHS Jane’s Defence Weekly, 18 January 2015.

[x]      U.S. Department of Defense, “Daily contracts – Contract FA8204-15-D-0001”, Website U.S. Department of Defense, 7 May 2015 (www.defense.gov/Contracts/Contract.aspx?ContractID=5535).

[xi]     Northrop Grumman, “Northrop Grumman Awarded Contract to Provide Ongoing Launcher Support for TRIDENT II (D5) Missile Weapon System”, News Release Northrop Grumman, 16 January 2007 (phx.corporate-ir.net/phoenix.zhtml?c=112386&p=irol-newsArticle&ID=950581&highlight=).

[xii]     U.S. Department of Defense, “Daily Contract List – Contract N00030-14-C-0011”, U.S. Department of Defense, 12 December 2013 (archive.defense.gov/Contracts/Contract.aspx?ContractID=5183).

[xiii]    U.S. Department of Defense, “Daily contracts – Contract N00030-14-C-0011”, Website U.S. Department of Defense, 29 September 2014 (archive.defense.gov/Contracts/Contract.aspx?ContractID=5386).

[xiv]    U.S. Department of Defense, “Daily contracts – Contract N00030-16-C-0010”, Website U.S. Department of Defense, 4 November 2015 (www.defense.gov/News/Contracts/Contract-View/Article/627682).

[xv]    U.S. Department of Defense, “Daily contracts – Contract N00030-16-C-0015”, Website U.S. Department of Defense, 10 November 2015 (www.defense.gov/News/Contracts/Contract-View/Article/628550).

[xvi]    U.S. Department of Defense, “Daily contracts – Modification P00002 to contract N00030-16-C-0015”, Website U.S. Department of Defense, 24 March 2016 (www.defense.gov/News/Contracts/Contract-View/Article/703910).

[xvii]   InsideDefense, “Long-Range Standoff Missile Development Pushed Back By Three Years”, InsideDefense, 5 March 2014;
Malenic, M., “Industry expects LRSO RfP in months”, IHS Jane’s 360, 16 March 2016 (www.janes.com/article/58824/industry-expects-lrso-rfp-in-months).

[xviii]   Federation of American Scientists, “W80-1 Warhead Selected For New Nuclear Cruise Missile”, Website Federation of American Scientists, 10 October 2014 (fas.org/blogs/security/2014/10/w80-1_lrso/).

[xix]    Malenic, M., “USAF wants to dodge latest air defences with bomber’s new secret weapon”, Website IHS Jane’s Defence Weekly, 27 January 2015.

[xx]    National Security Technologies, “NSTec, Who we are…”, Website National Security Technologies (www2.nstec.com/Pages/About.aspx), viewed June 2016.

[xxi]    Northrop Grumman, “Annual Report 2011”, Northrop Grumman, February 2012.

[xxii]   National Security Technologies, “NSTec, Who we are…”, Website National Security Technologies (www2.nstec.com/Pages/About.aspx), viewed June 2016;
Aecom, “10-K Annual Report 2013”, Aecom, November 2013 (phx.corporate-ir.net/External.File?item=UGFyZW50SUQ9MjIzNjQyfENoaWxkSUQ9LTF8VHlwZT0z&t=1);
InsideDefense, “DOE Awards Northrop Grumman Nevada Test Site Management and Operations Contract”, InsideDefense, 29 March 2006.

[xxiii]   Aecom, “Annual Report 2014”, Aecom, November 2014.

[xxiv] Rothberg, D., “With billions at stake, contractors eye bid to operate National Security Site”, Website Las Vegas Sun, 25 November 2015 (lasvegassun.com/news/2015/nov/25/with-billions-at-stake-contractors-eye-bid-to-oper/).

[xxv]   Nevada Site Office, “NNSA Conducts Pollux Subcritical Experiment at Nevada National Security Site”, Website Nevada Site Office, 6 December 2012 (nnsa.energy.gov/mediaroom/pressreleases/pollux120612);
Licherman, A., “Issue Update – Subcritical tests”, Western States Legal Foundation, 2012 (www.wslfweb.org/docs/WSLF%20Issue%20Update–Subcritical%20Tests%20Fall%202012.pdf).

[xxvi] Office of Research, Development, Test and Evaluation, “Stockpile Stewardship Quarterly”, National Nuclear Security Administration (NNSA), March 2015 (www.nnsa.energy.gov/sites/default/files/2015-03%20SSQ%20V5%20N1.pdf);
Furlanetto, M.R., “Stockpile Stewardship through Subcritical Experiments”, Los Alamos National Laboratory, 19 February 2014 (www.orau.gov/ssap2014/presentations/furlanetto_m.pdf).

Producers

In some nuclear-armed states – in particular the United States, the United Kingdom and France – private companies are hired by governments to carry out work on maintaining and modernising nuclear arsenals. This report looks at companies that are providing the necessary components to develop, test, maintain and modernise nuclear weapons.The contracts these companies have with nuclear armed countries are for materials and services to keep nuclear weapons in their arsenals. The companies described are substantially involved in the nuclear weapons programmes of the United States, the United Kingdom, France, or India and are themselves based in France, India, Italy, the Netherlands, the United Kingdom and the United States.

In other nuclear-armed countries –Russia, China, Pakistan and North Korea – the maintenance and modernization of nuclear forces is carried out primarily or exclusively by government agencies.

Methodology

The nuclear weapon producers identified were selected on the basis of a predetermined set of criteria.
– Information on investments is publicly available.
– The company is directly involved in the development, testing, production, maintenance or trade of nuclear weapons related technology, parts, products or services.
– The company’s involvement is related to warheads, or to delivery systems such as missiles, that are specifically developed for nuclear tasks. This includes technology that is designed for ‘dual use’ (military and civilian) but excludes technology that is not designed for, but can be used in nuclear warfare. It does not include delivery platforms such as bombers and submarines.

State owned or controlled nuclear industries are outside the scope of this research, as are companies not publicly listed. Our research uncovered a number of Universities involved in nuclear weapons programmes, but these are also outside the scope of the report.

The list of nuclear weapon producers investigated was compiled through a wide variety of sources, including financial institution exclusion lists, civil society reports, media reports, etc. Additional details on the contracts and components can be found in the Annex. We welcome information at any time about possible nuclear weapons producing companies to investigate.