Northrop Grumman Secures $764 Million Contract for SDA Tracking Layer Tranche 3

Northrop Grumman Corporation (NYSE: NOC) has been selected by the Space-Agencies (SDA) to produce and deploy 18 satellites for the Tracking Layer Tranche 3 (TRKT3) mission. Announced on December 19, 2025, the contract is valued at approximately $764 million and represents a significant step forward in the United States’ efforts to modernize its missile defense architecture.

The agreement tasks Northrop Grumman with delivering 18 space vehicles equipped with advanced infrared sensors. These satellites are designed to detect, warn, and track modern missile threats, including highly maneuverable hypersonic glide vehicles. The satellites are scheduled for launch in Fiscal Year 2029 and will form a crucial part of the Proliferated Warfighter Space Architecture (PWSA), a low-Earth orbit (LEO) constellation intended to provide global, persistent surveillance.

According to the company’s official statement, this award cements Northrop Grumman’s role as a primary partner in the PWSA, bringing their total number of contracted satellites across Tranches 1, 2, and 3 to 150.

Contract Scope and Mission Objectives

The Tracking Layer Tranche 3 mission is focused on expanding the “eyes” of the PWSA. Unlike traditional missile warning systems that rely on a small number of high-altitude satellites, the SDA’s strategy utilizes a proliferated network of hundreds of smaller satellites in LEO. This approach aims to provide redundancy and the ability to track threats from launch to impact.

Under the terms of the Other Transaction Authority agreement, Northrop Grumman will Manufacturing the satellites at a dedicated 30,000-square-foot facility designed specifically for the PWSA program. The primary technical objective is to provide “fire-control quality data”, high-precision tracking information that can be relayed directly to interceptors to neutralize incoming threats.

Executive Perspective

In a press release regarding the selection, Northrop Grumman emphasized the continuity of their technology stack, which leverages Overhead Persistent Infrared (OPIR) capabilities. Brandon White, Vice President and General Manager of Northrop Grumman’s Space-Enabled Multi-Domain Operations Division, highlighted the company’s readiness:

“Our extensive background in both high and low-altitude missile warning systems positions us uniquely to deliver TRKT3 swiftly, reinforcing the nation’s defense framework against a diversifying array of threats.”

— Brandon White, Northrop Grumman (via Press Release)

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Industry Context and Competitive Landscape

The SDA’s procurement strategy for Tranche 3 involves a total funding pool of approximately $3.5 billion, distributed among four distinct vendors to build a total of 72 satellites. This multi-vendor approach is designed to foster competition, reduce costs, and ensure supply chain resilience.

According to public award data released by the SDA, Northrop Grumman is joined by three other prime contractors in this tranche:

• Lockheed Martin: Awarded approximately $1.1 billion for 18 satellites.
• L3Harris: Awarded approximately $843 million for 18 satellites.
• Rocket Lab: Awarded approximately $805 million for 18 satellites.

While all four companies are delivering tracking capabilities, the specific sensor requirements vary slightly between vendors. Northrop Grumman’s specific allocation is for the Missile Warning/Missile Tracking (MW/MT) variant, which focuses on detecting launches and tracking flight paths to support the broader network.

AirPro News Analysis

The selection of four distinct vendors for Tranche 3 underscores the Space Development Agency’s commitment to a “proliferated” industrial base as well as a proliferated satellite constellation. By avoiding reliance on a single prime contractor, the SDA mitigates the risk of program delays caused by supply chain bottlenecks at any one company.

Furthermore, the inclusion of Rocket Lab alongside traditional defense giants like Northrop Grumman and Lockheed Martin signals a maturing of the space defense market, where “New Space” agility is increasingly integrated with established defense manufacturing capabilities. For Northrop Grumman, securing 18 satellites in this tranche, bringing their program total to 150, validates their investment in scalable satellite manufacturing facilities tailored to the SDA’s rapid two-year launch cadence.

Technical Integration and Future Timeline

The TRKT3 satellites will not operate in isolation. They are designed to integrate seamlessly with the PWSA’s “Transport Layer,” a mesh network of communication satellites that serves as the backbone for data transfer. This integration ensures that the tracking data generated by Northrop Grumman’s sensors can be transmitted with low latency to ground forces and weapon systems.

The company noted that the Tranche 3 satellites will feature “targeted technological improvements” over previous generations, including expanded geographical coverage and enhanced systems integration. With a target launch date in Fiscal Year 2029, these systems represent the next evolution in the U.S. Space Force’s ability to counter hypersonic threats that fly faster than five times the speed of sound.

Sources:
Northrop Grumman Press Release
Space Development Agency Announcements