The U.S. Navy has awarded Northrop Grumman a potential two-year, $16.4 million contract modification to continue to produce MK 54 Mod 0 lightweight torpedo array kits for the service branch.
The modification exercises the third option year on a previously awarded contract and covers engineering, production support materials, hardware repair services and factory test equipment to support updates to the Navy's torpedoes, the Defense Department said Thursday.
MK 54 Mod 0 works as an anti-submarine torpedo designed for use in littoral combat operations and has commercial-off-the-shelf digital signal processing and guidance-and-control systems that work to counter threats in shallow waters.
Northrop will perform work in California, Maryland and Pennsylvania through November 2018 under the contract, which merges purchases from the service branch and the government of Thailand through a foreign military sales agreement.
The Naval Sea Systems Command will obligate the full contract amount from the military branch's fiscal 2016 weapons procurement and FMS funds at the time of award, according to DoD.