Northrop Grumman Wins $22M Deal to Support T-38 & F-5 Program

U.S. Marine Corps

Northrop Grumman Wins $22M Deal to Support T-38 & F-5 Program: Northrop Grumman Corp.’s NOC subsidiary, Northrop Grumman Systems Corp., recently secured a $22-million contract to provide sustaining engineering services to the T-38 and F-5 aircraft. The contract was awarded by the Air Force Life Cycle Management Center, Hill Air Force Base, UT.

Work related to the deal will be performed in Clearfield, UT, and is scheduled to get completed by Mar 31, 2024. Northrop Grumman will utilize
fiscal 2019 operations and maintenance funds to complete the task.

A Brief Note on T-38 and F-5

Northrop Grumman’s T-38 Talon is the world's first supersonic jet trainer with twin engines. Currently, more than 500 T-38 Talon’s are operated by the U.S. Air Force and NASA.

The F-5 is a highly maneuverable, reliable supersonic fighter with advanced aerodynamic design, engine performance and low operating costs. The U.S. Navy operates the F-5 in its adversary squadrons to simulate enemy aircraft in aerial combat training exercises.

Our View

Recently, the U.S. government proposed its fiscal 2020 defense budget that includes a spending plan of $57.7 billion on aircraft, a massive increase of 166% from the approved fiscal 2019 defense spending on aircraft. If approved, such spending provision should usher in more contracts like the latest one for Northrop Grumman’s T-38 and F-5 aircraft program, going ahead.

Per Research and Markets firm, the global military and defense avionic systems market is expected to see a CAGR of 8.92% by 2020, to reach a value of approximately $142.5 billion. Such growth can be attributed to the rise in terrorist activities accompanied by stacking of arms and weapons in
emerging economies, leading to increased defense expenditures. Northrop Grumman, being a prominent player in this space, is likely to benefit from such favorable projections.


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