The Contract

The US Department of Defense Press Desk released today that Orbital ATK [NYSE: OA] has been awarded a Naval contract to the sum of $156,831,389 for the full-rate production of Lot 6 for the Advanced Anti-Radiation Guided Missile (AARGM).


Source Excerpt

Department of the Navy Contract:

“Orbital ATK Inc., Defense Electronic Systems, Northridge, California, is being awarded a $156,831,389 firm-fixed-price contract for the full-rate production of Lot 6 for Advanced Anti-Radiation Guided Missile (AARGM).  This contract provides for the conversion of AGM-88B High Speed Anti-Radiation Missiles into 230 AGM-88E AARGM All-Up-Rounds and six captive air training missiles, to include related supplies and services necessary for their manufacture, sparing, and fleet deployment.  Work will be performed in Northridge, California (90 percent); and Ridgecrest, California (10 percent), and is expected to be completed in March 2019.  Fiscal 2017 weapons procurement (Navy) funds in the amount of $155,352,654; and fiscal 2015 non-U.S. Department of Defense funds in the amount of $1,478,735 will be obligated at time of award, $1,478,735 of which will expire at the end of the current fiscal year.  This contract was not competitively procured pursuant to Federal Acquisition Regulation 6.302-1.  The Naval Air Systems Command, Patuxent River, Maryland, is the contracting activity (N00019-17-C-0005).”



Contract Interpretation

  • Firm-Fixed-Price: A contract with such a price is not subject to any adjustment due to costs in performing said contract. This is a maximum risk, full responsibility contract in which Orbital ATK theoretically could end up eating costs that exceed the amount they’ve initially agreed upon. More


Advanced Anti-Radiation Guided Missile (AARGM)


The AGM-88E Advanced Anti-Radiation Guided Missile (AARGM) is a special missile designed to target Integrated Air Defense (IAD) points and other targets that attempt to shut down our offensive capabilities. Using a multi-mode seeker, AARGM is capable of breaking through these defenses and efficiently eliminating the target at hand.



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Most information for this post was retrieved from various sources listed throughout the post. For other sources, see below:

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