Northrop Wins $34 Million in New Pentagon Contracts

On Friday, the Department of Defense awarded Northrop Grumman (NYSE: NOC  ) two contracts worth a combined $34 million.

The first contract modifies an existing contract by awarding Northrop $28.6 million to provide engineering and production planning services for Mission Packages that will be used aboard Navy Littoral Combat Ships, or LCSes. "Mission Packages" are a relatively new concept for the Navy and consist of standardized sets of equipment, sensors, and crew (Mission Modules) that can be loaded aboard an LCS to transform it into a ship designed for a specific mission.

Think of the LCS as the base plate in a Lego set. Depending on what kind of mission you might need to perform, different sizes and colors of Legos (Mission Modules) could be added to the base plate to build a complete Mission Package. For example, an LCS equipped for a surface warfare mission might be equipped with MK 46 and MK 44 cannons and associated rounds, surface-to-surface missiles, and an MH-60R Seahawk helicopter. LCSes destined for other missions might receive equipment better suited for minesweeping, for anti-submarine warfare, for anti-piracy, and so on.

Northrop's role in the instant contract is to assist in picking out the right "Legos," and evaluating how they work through a dynamic process of "continuous evaluation."

The company's role in the second contract is more straightforward. For $5.4 million, Northrop will support U.S. Army efforts to develop digitized communications among units on the battlefield, a project referred to as the "Lower Tactical Internet." Northrop will continue its work here through Sept. 12.


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  • Report this Comment On March 17, 2013, at 8:11 AM, DBGator wrote:

    I believe that these are the kinds of thing that should/could be cut from the Military/Pentagon budget. The US spends more on defense than any other country in the world by HUGE amounts....these are the kind of contracts they are probably won/given by wining and dining by lobbyists.....Eisenhower warned of the Military Industrial Complex that this counrty has become...war is good..its a money maker for the few ..the ulra rich...Remember..Dick Cheney was head of Haliburton before he was vice President and made money off of the Iraq war.....

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