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Northrop Grumman Wins $233 Million OTA for MK 54 Mod 2 Increment 1 Integration

The staged effort delivers a new warhead now, with a SCEPS propulsion upgrade planned for a later increment.

Overview

  • The rapid-prototyping award funds proof of manufacture, qualification, and delivery of multiple all-up-rounds for testing.
  • Integration and initial manufacturing will take place in Plymouth, Minnesota, and at Allegany Ballistics Laboratory in Rocket Center, West Virginia.
  • Increment 1 mates the new MOD 2 forebody and an adapter to a legacy Otto II propulsion afterbody provided as government-furnished material.
  • The torpedo is being developed under the U.S.–Australia Advanced Lightweight Torpedo program using competitive OTA agreements and a modular, section-based approach.
  • L3Harris and Aerojet Rocketdyne reported successful SCEPS powerplant testing in August 2025, paving the way for an Increment 2 afterbody to boost range, speed and depth.