Karman Space & Defense (NYSE: KRMN) has been awarded a $21.3 million contract by Northrop Grumman for the Proof of Manufacture phase of the U.S. Navy's MK 54 Torpedo Fleet Exercise Section program, according to a press release from the Huntington Beach, California-based company.

The MK 54 Fleet Exercise Section is a recoverable, non-explosive training configuration used in U.S. Navy anti-submarine warfare exercises. It replaces a live warhead with an exercise and recovery assembly, allowing safe deployment in training environments, performance data collection, and system reuse.

The Proof of Manufacture phase is intended to validate the system's design, manufacturing, and testing processes while supporting a transition to Low-Rate Initial Production. This phase will allow the U.S. Navy to conduct full system qualification before fleet deployment.

The MK 54 lightweight torpedo is deployed across submarines, aircraft, and surface ships operated by the U.S. Navy and allied nations.

"We're excited to move forward from the Proof of Demonstration phase to the Proof of Manufacture phase for the next generation of the U.S. Navy's MK 54 Fleet Exercise Section," said Jon Rambeau, chief executive officer of Karman.