Northrop Grumman Corporation Wins $200 Million Deal to Supply GPS Devices to Navy

Additional customers under the contract may include Iraq and Thailand.

Jan 24, 2014 at 10:25PM

The Department of Defense awarded 10 defense contracts worth $599.7 million in combined value Friday. Northrop Grumman (NYSE:NOC) didn't win the biggest of these contracts -- but it did win the second-biggest.

The contract in question, a $200 million sole-source, partial-foreign military sales, indefinite-delivery/indefinite-quantity contract to perform "acquisition and sustainment" for the Embedded Global Positioning System Inertial Navigation System (EGI), instructs Northrop to work on platform integration, modernization, flight test support, technical support, training, engineering, and other efforts related to EGI.

The Navy describes the EGI system as "a small, reliable, light weight unit which contains full Precise Position Service GPS on a single standard electronic module, plus a state-of-the-art Ring Laser Gyro inertial navigation system." It is used ordinarily for navigation in Navy F/A-18 fighter-bombers, EA-18G electronic warfare aircraft, and various other aircraft and helicopters. In addition to the Navy, however, this contract envisions foreign military sales to the militaries of Iraq and Thailand.

Northrop's contract will run through Dec. 31, 2018.

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 may not 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.

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