Northrop Grumman

Northrop Grumman (United States) makes Intercontinental Ballistic Missiles (ICBM) for the US nuclear arsenal. It is currently involved the Minuteman III missiles,  and will now be producing the new “Ground Based Strategic Deterrent” (GBSD) nuclear missiles.  It also produces Trident II (D5) launcher subsystem components for the US and the UK.  It is also partly responsible for the Nevada National Security Site (NNSS), previously known as the Nevada Test Site, which is engaged in aspects of nuclear warhead modernisation for the US arsenal and has also provided data to UK nuclear labs.

Company profile

Northrop Grumman, based in the US, provides products, services and solutions in the military aerospace, electronics, information systems and shipbuilding sectors.[1]

In the financial year ending 31 December 2016, Northrop Grumman generated revenues of US$ 24.5 billion (€ 23.3 billion), resulting in an operating income of US$ 3.2 billion (€ 3.0 billion) and a net income of US$ 2.2 billion (€ 2.1 billion).[2]

Contact Information

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 400 Minuteman III currently deployed and they are expected to stay active until at least 2030.[3] The Air Force “plans to replace the missiles with a new Ground-based Strategic Deterrent around 2030”.[4]

In October 2016, Northrop Grumman announced that it had submitted a proposal to the US Air Force to replace Minuteman III with the Ground Based Strategic Deterrent (GBSD) program. There are two other companies in the bidding process, Lockheed Martin and Boeing. The US Air Force will choose two contenders by September 2017 to begin development of the program.[5] In August 2017, Northrop Grumman won the contract to “conduct technology maturation and risk reduction to deliver a low technical risk, affordable total system replacement of Minuteman III to meet intercontinental ballistic missiles operational requirements.” Northrop Grumman was awarded a US$ 328.6 million (€ 279.5 million) contract. Work is expected to be completed in August 2020. Boeing won a separate similar contract.[6]

Northrop Grumman lost its role as prime contractor to BAE Systems in August 2013.[7] During the transition period, a partial bridge contract worth US$ 165.0 million (€ 128.3 million)[8] and extended twice (for US$ 9.9 million (€ 7.4 million) in September 2013[9], 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, these have been extended to 2018.[10]

In August 2017, Northrop Grumman was awarded a US$ 16.8 million (€ 14.2 million) modification to the ICBM partial bridge contract for the Operational Software Sustainment Program (from 2014)[11] with work expected to be completed in September 2018.[12]

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.[13]

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.[14]

Northrop Grumman has provided the original launcher system of the Trident II (D5) since the 1980s.[15] 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.[16] 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.[17]

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.[18] 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$198.0 million (€ 186.0 million) and work will continue through September 2020 if all options are exercised.[19] A US$ 25.6 million (€ 23.2 million) contract was awarded to NGSC-MS in March 2016.[20] In October 2016, as well as in January and June 2017, modifications were made to this contract, with a completion date in September 2020. The amounts awarded are, respectively US$ 18.7 million (€ 17.1), US$ 22.7 million (€ 21.1 million) and US$ 7.0 (€ 6.3).[21]

Together with partners BWX Technologies, CH2M Hill and Aecom, Northrop Grumman is a joint venture partner in National Security Technologies (NSTec). 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.[22] 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.[23] The contract expired in September 2016,[24] but has been updated a few times. The last update was in June 2017 for an additional 3 months.[25] 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.[26] In the financial years 2014 to 2016, the National Nuclear Security Administration (NNSA) successfully completed the Lyra-series of three scaled-integral implosion experiments; these included Vega, a subcritical experiment in the NNSS complex using a plutonium pit.[27]

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Investors

The following financial institutions made approximately US$ 43,979 million available to this producer from January 2014 through October 2017.

  • Allianz (Germany)
  • Allstate (United States)
  • American Family (United States)
  • American International Group (AIG) (United States)
  • Ameriprise Financial (United States)
  • ANZ (Australia)
  • AQR Capital Management (United States)
  • AXA (France)
  • Bank of America (United States)
  • Bank of New York Mellon (United States)
  • BlackRock (United States)
  • Blaylock Beal Van (United States)
  • BNP Paribas (France)
  • Capital Group (United States)
  • Citigroup (United States)
  • Credit Suisse (Switzerland)
  • Deutsche Bank (Germany)
  • Drexel Hamilton (United States)
  • DZ Bank (Germany)
  • Fidelity Investments (United States)
  • Franklin Resources (United States)
  • Geode Capital Management (United States)
  • Goldman Sachs (United States)
  • Guggenheim Capital (United States)

  • Invesco (United Kingdom)
  • Janus Henderson Group (Jersey)
  • JPMorgan Chase (United States)
  • Legal & General (United Kingdom)
  • Legg Mason (United States)
  • Lloyds Banking Group (United Kingdom)
  • Macquarie Group (Australia)
  • MetLife (United States)
  • Mischler Financial Group (United States)
  • Mitsubishi UFJ Financial (Japan)
  • Mizuho Financial (Japan)
  • National Bank of Abu Dhabi (United Arab Emirates)
  • Nationwide Mutual Insurance (United States)
  • New York Life Insurance (United States)
  • Northern Trust (United States)
  • Northwestern Mutual Life Insurance (United States)
  • Power Financial Corporation (Canada)
  • Prudential Financial (US) (United States)
  • Royal Bank of Scotland (United Kingdom)
  • Scotiabank (Canada)
  • State Farm (United States)
  • State Street (United States)
  • Sumitomo Mitsui Financial (Japan)
  • Sun Life Financial (Canada)
  • T. Rowe Price (United States)
  • TIAA (United States)
  • Ullink  (France)
  • UniCredit (Italy)
  • US Bancorp (United States)
  • Vanguard (United States)
  • Wellington Management (United States)
  • Wells Fargo (United States)
  • White Mountains Insurance (Bermuda)

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Notes

Notes

 

 

[1]     Northrop Grumman, “About us”, Website Northrop Grumman (www.northropgrumman.com/about_us/index.html), viewed August 2017.

[2]     Northrop Grumman, “Annual Report 2016”, Northrop Grumman, February 2017.

[3]     Woolf, A.E., “US Strategic Nuclear Forces: Background, Developments and Issues”, Congressional Research Service, 10 February 2017 (www.fas.org/sgp/crs/nuke/RL33640.pdf).

[4]     Woolf, A.E., “US Strategic Nuclear Forces: Background, Developments and Issues”, Congressional Research Service, 10 February 2017 (www.fas.org/sgp/crs/nuke/RL33640.pdf).

[5]     Defense World, “Northrop Grumman Submits Proposal For USAF Ground Based Strategic Deterrent Program”, Defense World website, 18 October 2016 (www.defenseworld.net/news/17391/Northrop_Grumman_Submits_Proposal_For_USAF_Ground_Based_Strategic_Deterrent_Program#.WYw3U1VJaUk);     National Defense, “Air Force on a Long Road to Replace Minuteman III”, National Defense website, 23 July 2017 (www.nationaldefensemagazine.org/articles/2017/7/23/air-force-on-a-long-road-to-replace-minuteman-iii).

[6]     U.S. Department of Defense, “Daily contracts – Contract FA819-17-C-0001”, Website U.S. Department of Defense, 21 August 2017 (www.defense.gov/News/Contracts/Contract-View/Article/1284769/).

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

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

[9]     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).

[10]    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); U.S. Department of Defense, “Daily Contracts List – Modification to Contract F42610-98-C-0001”, U.S. Department of Defense, 2 August 2017 (www.defense.gov/News/Contracts/Contract-View/Article/1265704/).

[11]    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).

[12]    U.S. Department of Defense, “Daily contracts – Modification P04192 to contract F42610-98-C-0001”, Website U.S. Department of Defense, 2 August 2017 (www.defense.gov/News/Contracts/Contract-View/Article/1265704/).

[13]    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.

[14]    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).

[15]    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=).

[16]    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).

[17]    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).

[18]    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).

[19]    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).

[20]    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).

[21]    U.S. Department of Defense, “Daily contracts – Modification P00006 to contract N00030-16-C-0015”, Website U.S. Department of Defense, 27 October 2016 (www.defense.gov/News/Contracts/Contract-View/Article/988793/);         U.S. Department of Defense, “Daily contracts – Modification P00007 to contract N00030-16-C-0015”, Website U.S. Department of Defense, 26 January 2017 (www.defense.gov/News/Contracts/Contract-View/Article/1061625/);              U.S. Department of Defense, “Daily contracts – Modification P00009 to contract N00030-16-C-0015”, Website U.S. Department of Defense, 16 June 2017 (to contract N00030-16-C-0015”, Website U.S. Department of Defense,).

[22]    National Security Technologies, “NSTec, Who we are…”, Website National Security Technologies (www2.nstec.com/Pages/About.aspx), viewed June 2017;
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.

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

[24]    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/).

[25]    Nevada National Security Site, “National Security Technologies, LLC Contract Modifications”, Website NNSS, (www.nnss.gov/pages/NFO/PrimeContracts/NSTec-Mods.html), viewed in July 2017.

[26]    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);
Lichterman, A., “Issue Update – Subcritical tests”, Western States Legal Foundation, 2012 (www.wslfweb.org/docs/WSLF%20Issue%20Update–Subcritical%20Tests%20Fall%202012.pdf).

[27]    National Nuclear Security Administration, “Los Alamos National Laboratory: Fiscal Year 2016 Performance Evaluation Report (PER)”, Website National Nuclear Security Administration, (www.nnsa.energy.gov/sites/default/files/nnsa/multiplefiles/fy_2016_lans_fdo_memo_publicly_releasable_per.pdf), p. 12; 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).

This page was last updated 29 January 2018.

Top 20 Producers

Looking for information on other nuclear weapon associated companies? Check here.

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 the top 20 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, the Netherlands, the United Kingdom and the United States. More information on other companies involved in nuclear arsenals, not listed in the top 20, can be found here.

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 is on the website.
We welcome information at any time about possible nuclear weapon producing companies to investigate.