Northrop Notches 2 Defense Contract Wins

Falls Church, Va.-based Northrop Grumman (NYSE: NOC  ) snagged two Pentagon defense contracts Thursday -- 10% of the 20 contracts announced this evening. One was small, but the other contract was -- potentially -- quite big indeed.

Addressing the small one first, Northrop was awarded a $25.2 million contract modification to supply the U.S. Naval Sea Systems Command in Washington, D.C., with three "mission modules" to be loaded aboard the new class of Littoral Combat Ships that the Navy is building out. In addition to the modules themselves, Northrop will supply "support containers" and provide engineering and production planning services for "mission packages" that will comprise the mission modules. (The rule for remembering this new military lexicon: An LCS is outfitted with mission packages. Each mission package is made up of multiple mission modules). Northrop is scheduled to deliver all of the above by September 2015.

Northrop's other contract win was both somewhat smaller but also potentially much bigger. In it, Northrop is hired to provide supplies, maintenance, and other services needed for the U.S. Army's Counter Rocket Artillery Mortar (C-RAM) Command and Control System. Sometimes described as a land-based version of the Navy's Phalanx air defense system, C-RAM is an Army weapons system designed to destroy incoming, indirect-fire missiles of various shapes and sizes.

Winning this cost plus incentive fee, option-eligible, non-multiyear C-RAM contract modification will initially mean $22.9 million in incremental revenues for Northrop. However, if all options are exercised, the Pentagon notes that Northrop's contract value could ultimately grow as high as $157.4 million.


 

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

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.

Be the first one to comment on this article.

DocumentId: 2598057, ~/Articles/ArticleHandler.aspx, 4/23/2014 8:56:45 PM

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...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement