The Defense Department has announced that it will invest over $1.1 billion in two of San Diego’s prominent defense contractors for the development of high-altitude drones and command-and-control systems for satellites.

Northrop Grumman will receive $543 million to construct three MQ-4C Triton unmanned aircraft for the Navy, along with an operating base for these drones. These aircraft are currently utilized by the Navy for surveillance, reconnaissance, and targeting purposes in the Indo-Pacific region. Additionally, Northrop Grumman will manufacture one Triton aircraft for the Australian government, which has been strengthening its alliance with the United States.

Kratos Technology & Training Solutions will be awarded $579 million to develop and sustain a telemetry, tracking, and command system for military communications satellites. This project will be undertaken on behalf of the Space Systems Command in Colorado.

In another contract, Northrop Grumman will receive $36.2 million for software engineering services for the Naval Information Warfare Systems Command in San Diego.

These significant investments further bolster San Diego’s defense sector, which received more than $36 billion in direct defense spending in fiscal 2023 according to a recent economic impact report by the San Diego Military Advisory Council.

By awarding these contracts, the Defense Department demonstrates its commitment to advancing technological capabilities for national security and strengthening partnerships with international allies. These developments contribute to the region’s economic growth and reinforce San Diego’s status as a thriving defense hub.