Northrop Wins Contracts for Radar Work, LCS "Packages"

On Friday, the U.S. Department of Defense announced it has awarded Northrop Grumman (NYSE: NOC  ) three separate contracts -- two "modifications," and one entirely new award -- worth about $55.5 million in aggregate. In order of descending value, they include:

  • $24.5 million: to increase the ceiling value on a previously awarded cost-plus-incentive-fee, firm-fixed-price Ground/Air Task-Oriented Radar Engineering contract with the U.S. Marine Corps, in order to cover "anticipated cost growth," and pay for the beginning of production engineering. Mounted on medium tactical vehicles, "G/ATOR" is a new mobile, three-dimensional, short-to-medium-range tactical radar system in development by the USMC. It is designed to be effective against everything from low-flying cruise missiles, enemy aircraft, and UAVs, to smaller objects such as incoming rockets, mortar, and artillery fire. Northrop's work on this phase of the contract should wrap up by April 25, 2014.
  • $19.4 million: modifying a contract to provide engineering and production planning services for unspecified "mission packages" to be carried by the Navy's new Littoral Combat Ships. This contract runs through June 2014.
  • $11.6 million in the form of a new fixed-price indefinite-delivery/indefinite-quantity (IDIQ) contract to "produce, test, integrate, qualify and deliver" an upgraded laser configuration for use in the Electro-Optical Third Generation Console for Advanced Targeting Forward Looking Infrared (FLIR) systems. This FLIR system is installed on Navy the F/A-18 E/F fighter jets and SH-60 Seahawk helicopters. Northrop will supply the Navy first with two prototype units of the upgraded laser, and later supply 102 upgraded units for installation. Work should be completed by June 2016.

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