received a new $113.7 million advance acquisition contract to purchase long lead materials for the U.S. Navy's first five full-rate production Lot 2 E-2D Advanced Hawkeye early warning aircraft.
The contract follows the Navy's decision earlier this year to proceed with full-rate production, moving it closer to total procurement of 30 full-rate production aircraft.
In June, the 10th E-2D was delivered, and the company has 10 additional aircraft that are either in production or pre-delivery flight testing. According to Bart LaGrone, vice president of E-2 programs at Northrop Grumman, said that despite "today's challenging defense budget environment," airborne early warning remains a priority for Naval air operations.
Despite sequestration, which has already cut $42 billion in defense spending for 2013, the Navy said it has been able to keep its air modernization efforts going. According to the Office of Management and Budget, aircraft purchases for the Air Force and the Navy were cut by $3.5 billion this year.
The Navy is on scheduled to achieve initial operational capability with the E-2D in 2015.
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