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 Corporation, based in the United States, provides products, services and solutions in the military aerospace, electronics, information systems and shipbuilding sectors. 1

In the financial year ending 31 December 2014, Northrop Grumman generated revenues of US$ 24.0 billion (€ 19.7 billion), resulting in an operating income of US$ 3.2 billion (€ 2.6 billion) and a net income of US$ 2.1 billion (€ 1.7 billion). 2

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). There are 450 Minuteman III still deployed today. 3

Northrop Grumman lost its role as prime contractor to BAE Systems in August 2013. 4 During the transition a partial a partial bridge contract worth US$ 165.0 million (€ 128.3 million) 5 and extended twice (for US$ 9.9 million (€ 7.4 million) in September 2013 6 and for US$ 13.7 million (€ 10.0 million) in March 2014) was awarded by the Air Force for sustaining engineering services for the ICBM weapon system through September 2014. 7

In August 2014, Northrop Grumman received a contract modification under the ICBM partial bridge contract for the Operational Software Sustainment Program. The award has a value of US$ 12.6 million (€ 9.4 million). Work is expected to be completed by September 2015. 8 Another 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 has a value of US$ 89.9 million (€ 66.9 million). Work is expected to be completed by September 2015. 9

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 program management services for ground subsystems to include sustainment, assessment, system modification and technical support of ICBMs. 10

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. 11

Northrop Grumman 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 in December 2013. It is also expected to advance and support the conduct of the technology development of cost-effective launcher subsystem architecture for the Ohio-class Replacement Program. The expected completion date is September 2018. 12 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. 13

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. 14 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. 15 Little information about what the US Air Force is seeking in an LRSO missile is publicly available. 16

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. 17 Northrop Grumman was the managing partner, but decreased its interest in NSTec in 2011. 18 The exact ownership distribution is not known. This US$ 3.1 billion (€ 2.3 billion) contract includes operation and maintenance of over 500 facilities and laboratories as well as the associated infrastructure, vehicles, and IT/communications. 19 The NNSS is the only US nuclear test site where subcritical tests are still taking place. The most recent one was the Pollux test in December 2012. 20 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. 21

Investors

The following financial institutions have made approximately USD 33,170 million available to this producer since January 2012.

  • AJO (United States)
  • Allianz (Germany)
  • Allstate (United States)
  • American Family Mutual Insurance (United States)
  • American International Group (AIG) (United States)
  • Ameriprise Financial (United States)
  • ANZ (Australia)
  • AQR Capital Management (United States)
  • Aviva (United Kingdom)
  • AXA (France)
  • Bank of America (United States)
  • Bank of New York Mellon (United States)
  • Barclays (United Kingdom)
  • BayernLB (Germany)
  • BB&T (United States)
  • BlackRock (United States)
  • Blaylock Beal Van (United States)
  • BMO Financial Group (Canada)
  • BNP Paribas (France)
  • Capital Group (United States)
  • Capital One Financial (United States)
  • Citigroup (United States)
  • Columbia Threadneedle Investments (United States)
  • Comerica (United States)
  • Crédit Suisse (Switzerland)
  • Danske Bank (Denmark)
  • Deutsche Bank (Germany)
  • Dimensional Fund Advisors (United States)
  • Drexel Hamilton (United States)
  • DZ Bank (Germany)
  • First Eagle Investment Management (United States)

  • Franklin Resources (United States)
  • GE Capital Services (United States)
  • Geode Capital Management (United States)
  • Goldman Sachs (United States)
  • Guggenheim Capital (United States)
  • Guilford (United States)
  • Gulf Bank (Kuwait)
  • Intesa Sanpaolo (Italy)
  • Invesco (United States)
  • Janus Capital Group (United States)
  • JPMorgan Chase (United States)
  • Legg Mason (United States)
  • Lloyds Banking Group (United Kingdom)
  • LSV Asset Management (United States)
  • Macquarie Group (Australia)
  • Manulife Financial (Canada)
  • MetLife (United States)
  • Mischler Financial Group (United States)
  • Mitsubishi UFJ Financial (Japan)
  • Mizuho Financial (Japan)
  • Morgan Stanley (United States)
  • National Bank of Abu Dhabi (United Arab Emirates)
  • Nationwide Mutual Insurance (United States)
  • New York Life Insurance Company (United States)
  • Northern Trust (United States)
  • Northwestern Mutual Life Insurance (United States)
  • Old Mutual (United Kingdom)

  • Pacific Mutual (United States)
  • PNC Financial Services (United States)
  • PointState Capital (United States)
  • Power Financial Corporation (Canada)
  • Prudential (UK) (United Kingdom)
  • Prudential Financial (US) (United States)
  • Royal Bank of Scotland (United Kingdom)
  • Schroders (United Kingdom)
  • Scotiabank (Canada)
  • State Farm (United States)
  • State Street (United States)
  • Sumitomo Mitsui Financial (Japan)
  • Sun Life Financial (Canada)
  • SunTrust (United States)
  • Taiwan Business Bank (Taiwan)
  • Taiwan Cooperative Financial (Taiwan)
  • The Dai-Ichi Life Insurance Company (Japan)
  • Thrivent Financial (United States)
  • TIAA-CREF (United States)
  • Toronto-Dominion Bank (Canada)
  • Travelers (United States)
  • UBS (Switzerland)
  • UniCredit (Italy)
  • Unum Group (United States)
  • US Bancorp (United States)
  • Vanguard (United States)
  • Wellington Management (United States)
  • Wells Fargo (United States)
  • Western & Southern Financial (United States)
  • Williams Capital Group (United States)

This page was last updated 29 October 2015.

Notes

  1. Northrop Grumman, “About us”, Website Northrop Grumman (www.northropgrumman.com/about_us/index.html), viewed June 2015.
  2. Northrop Grumman, “Annual Report 2014”, Northrop Grumman, February 2015.
  3. US Air Force, “Fact sheet”, Website US Air Force, 9 May 2013 (www.minot.af.mil/library/factsheets/factsheet_print.asp?fsID=16836&page=1);
    Boeing, “Minuteman III”, Website Boeing ( www.boeing.com/defense/weapons/minuteman-iii/), viewed June 2015;
    Defense Industry Daily, “Missile Envy: Modernizing the US ICBM Force”, Defense Industry Daily, 14 March 2011 (www.defenseindustrydaily.com/Missile-Envy-Modernizing-the-US-ICBM-Force-06059/);
    WashingtonWatch, “Minuteman III Solid Rocket Motor Warm Line Program (SRMWL)”, Website WashintonWatch (www.washingtonwatch.com/bills/show/ED_81542.html), viewed June 2015;
    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).
  4. Inside the Air Force, “Air Force Chooses BAE As Lead ICBM Contractor, Supplanting Northrop”, Inside the Air Force, Vol.24(31), 2 August 2013.
  5. Inside the Air Force, “Air Force Chooses BAE As Lead ICBM Contractor, Supplanting Northrop”, Inside the Air Force, Vol.24(31), 2 August 2013.
  6. U.S. Department of Defense, “Daily Contracts List – Contract F42610-98-C-0001”, U.S. Department of Defense, 26 September 2013 (www.defense.gov/contracts/contract.aspx?contractid=5142).
  7. U.S. Department of Defense, “Daily Contracts List – Contract F42610-98-C-0001”, U.S. Department of Defense, 27 March 2014 (www.defense.gov/Contracts/Contract.aspx?ContractID=5250).
  8. U.S. Department of Defense, “Daily contracts – Contract F42610-98-C-0001”, Website U.S. Department of Defense, 11 August 2014 (www.defense.gov/Contracts/Contract.aspx?ContractID=5348).
  9. U.S. Department of Defense, “Daily contracts – Contract F42610-98-C-0001”, Website U.S. Department of Defense, 4 August 2014 (www.defense.gov/Contracts/Contract.aspx?ContractID=5343).
  10. 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”, Website InsideDefense, 15 January 2015 (insidedefense.com/defense-next/northrop-gets-964m-icbm-support-contract);
    Malenic, M., “Northrop Grumman signs major ICBM support contract as Boeing studies award challenge”, Website IHS Jane’s Defence Weekly, 18 January 2015 (www.janes.com/article/47970/northrop-grumman-signs-major-icbm-support-contract-as-boeing-studies-award-challenge).
  11. 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).
  12. U.S. Department of Defense, “Daily Contract List – Contract N00030-14-C-0011”, U.S. Department of Defense, 12 December 2013 (www.defense.gov/contracts/contract.aspx?contractid=5183).
  13. U.S. Department of Defense, “Daily contracts – Contract N00030-14-C-0011”, Website U.S. Department of Defense, 29 September 2014 (www.defense.gov/Contracts/Contract.aspx?ContractID=5386).
  14. InsideDefense, “Long-Range Standoff Missile Development Pushed Back By Three Years”, InsideDefense, 5 March 2014.
  15. 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/).
  16. Malenic, M., “USAF wants to dodge latest air defences with bomber’s new secret weapon”, Website IHS Jane’s Defence Weekly, 27 January 2015 (www.janes.com/article/48385/usaf-wants-to-dodge-latest-air-defences-with-bomber-s-new-secret-weapon).
  17. National Security Technologies, “NSTec, Who we are…”, Website National Security Technologies (www2.nstec.com/Pages/About.aspx), viewed May 2015.
  18. Northrop Grumman, “Annual Report 2011”, Northrop Grumman, February 2012.
  19. AECOM, “Annual Report 2014”, AECOM, November 2014.
  20. 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).

  21. 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.