Northrop Grumman Wins Ballistic Missile Offense and Defense Contracts

The Pentagon announced 86 separate contract awards on Thursday worth a combined $7.55 billion. Of these contracts, Northrop Grumman (NYSE: NOC  ) won three:

  • a $12.1 million contract for the Australian Mission Processor Phase 3 (AMP 3), through which Northrop is to design, develop, procure, test, install, and integrate the AMP 3 system, which will process geosynchronous satellite infrared data from both the Defense Support Program and the Space Based Infra-Red Systems (SBIRS) ballistic missile warning system. This contract should be complete by March 2018;
  • a task order worth up to $11.3 million to evaluate, analyze, repair, and/or test the Air Force's aircraft structural integrity program for its A-10 Warthog combat aircraft through Sept. 18, 2016. The Pentagon notes that although three defense contractors were invited to bid on this task order, only Northrop actually submitted a bid; and finally
  • a $9.9 million contract modification to support "integration" of the LGM-30 Minuteman III missile through March 30, 2014.

In total, the three contracts add up to only $33 million in incremental revenues for Northrop, a significantly smaller haul than the awards the company received yesterday.


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