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.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • 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.....

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2316924, ~/Articles/ArticleHandler.aspx, 12/21/2014 7:07:08 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement