Northrop Grumman: Fixed-price LEO military satellite contracts promise higher profit than cost-plus deals

by Peter B. de Selding

TUPPER LAKE, NY — The U.S. military’s pivot to large numbers of smaller satellites in low Earth orbit is rewriting the profit potential of large defense contractors’ space programs as awards move from cost-plus to fixed-price contracts, Northrop Grumman Chief Executive Kathy J. Warden said.

Northrop’s Space Systems division overall has shown remarkable growth in recent years and the trend has not ended. For the three months ending June 30, the division reported $3.49 billion in sales, up 17% over a year ago. The . . .

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