ARLINGTON, Va. — Naval Air Systems Command has awarded a $3.2 billion multiyear procurement (MYP) contract to Northrop Grumman Systems Corp. for 24 E-2D Advanced Hawkeye (AHE) carrier-based early warning aircraft.
The April 10 Defense Department contract announcement “provides for the procurement of 24 full-rate production Lots 7-11 E-2D AHE aircraft.”
The new deal is the second MYP contract awarded to Northrop Grumman, the command said in a release. The Navy awarded the first in 2014 for production of 25 E-2D AHE aircraft, and Congress later increased the number to 26 aircraft.
“This is a critical element in providing the next generation of world-class command-and-control aircraft to the fleet,” Capt. Keith Hash, E-2/C-2 Airborne Tactical Data Systems Program Office (PMA-231) program manager, said in the release.
“The use of the MYP contract allows a substantial savings over the use of single-year contracts and helps us fulfill our mission to increase U.S. naval power at sea by providing our fleet the information they need to accurately plan and win the fight today and tomorrow,” he said.
The savings for MYP II are projected to be $410.6 million, or 11 percent, over the five years of the contract, the release said. “The first MYP contract saved $586.6 million, a 13.9% savings compared to the cost of five single-year procurement contracts,” according to the release.
The E-2D is replacing the E-2C in the Navy’s nine fleet carrier airborne early warning squadrons, each of which is being equipped with five aircraft, an increase of one aircraft over the four E-2Cs that equip each the squadrons yet to make the transition. The fleet E-2 aircraft are based at Naval Station Norfolk, Virginia, Naval Air Station Point Mugu, California, and Marine Corps Air Station Iwakuni, Japan.
The Navy has a requirement for 75 E-2Ds. The service plans to purchase 24 in fiscal years 2020 through 2023. The Japanese Air Self-Defense Force also has ordered several E-2Ds.
The contract work is expected to be completed by August 2026.