Northrop Grumman has been contracted by the US Navy to integrate and perform initial proof of manufacture for the service’s next-generation MK 54 MOD 2 lightweight torpedo according to a 12 January company statement.
The prime contract award, valued at $233 million, covers the proof of manufacturing and qualification phases, as well as delivery of multiple torpedoes for qualification testing. The weapon will incorporate a new custom-design warhead designed to improve its lethality against submarine threats.
Being developed under the Advanced Lightweight Torpedo program, the MK 54 MOD 2 weapon is being designed and developed under a cooperative development agreement with Australia. The MOD 2 builds on the existing MK 54 MOD 1 weapon but introduces improvements to lethality (Increment 1) and propulsion (Increment 2) in two distinct steps.
The US Navy’s acquisition strategy for MK 54 MOD 2 torpedo has sought to use University Affiliated Research Centers, naval warfare centers, and competitive Other Transactional Authority (OTA) agreements with industry to execute a rapid prototyping effort. Four companies were awarded OTAs during the Proof of Design (POD) phase: Northrop Grumman (warhead section); L3Harris Aerojet Rocketdyne (stored chemical energy propulsion system [SCEPS] afterbody section); Progeny (guidance and control section); and Raytheon (test sets, test shapes, air launch accessories, and fleet exercise sections).
Northrop Grumman’s latest award is a rapid prototyping proof of manufacture OTA contract for the MK 54 MOD 2 Increment 1 all-up-round (AUR) configuration. This marries the MOD 2 forebody section developed during the POD phase with a new adapter section and the legacy Otto II fuel propulsion afterbody from MK 54 MOD 0/1 weapon (the latter being supplied to Northrop Grumman as Government Furnished Material for integration).
The OTA will procure units to support developmental testing, warhead and AUR qualification, live fire, and initial operational capability, and to mature the production line for rapid fielding procurement. Integration and initial proof of manufacturing will be performed at the company’s facility in Plymouth, Minnesota, and Allegany Ballistics Laboratory in Rocket Center, West Virginia.
While Increment 1 will deliver a partial capability focused on lethality (improved warhead and processing capabilities), the full MK 54 MOD 2 capability set will come later under Increment 2. This will see the introduction of SCEPS propulsion afterbody (replacing the Otto II fuel engine) to deliver improved range, speed and depth performance.
SCEPS uses a lithium boiler to generate steam, which in turn drives a turbine. L3Harris in August 2025 announced that it had successfully tested the SCEPS powerplant: this activity validated functionality and performance ahead of design verification testing of the full afterbody.
