No defense spending? No problem!
That seems to be Northrop Grumman's (NYSE:NOC) game plan this week, as one of the nation's best-known defense contractors takes a step toward diversifying its business into an area of government spending that's a bit more ... defensible.
This morning, Northrop announced that it's won a contract from the state of Wyoming to run an Internet-based computer system that will determine state residents' eligibility to receive Medicaid and Children' Health Insurance Program benefits. Northrop notes that the system is being set up to help Wyoming meet its obligations under the Patient Protection and Affordable Care Act (a.k.a. Obamacare), which requires the state to expand access to its Medicaid program. The system is expected to be ready to enroll applicants on Oct. 1.
Northrop will receive $29 million in compensation for its work on the four-year contract.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Northrop Grumman. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.