Northrop Grumman Wins $750 Million in New Missile Defense Work

Company's contract with the Missile Defense Agency swells to $3.25 billion in total value.

Mar 12, 2014 at 9:43PM

The Department of Defense awarded six separate defense contracts Wednesday, worth $960 million in total. Defense contractor Northrop Grumman (NYSE:NOC) won two of them.

The smaller of the two awards, worth $30.8 million to Northrop, came in the form of a contract modification calling upon the company to provide unspecified "continued logistic support services" to the U.S. Army through Jan. 31, 2015.

The larger award, worth $750 million, was easily the largest contract awarded Wednesday, consuming more than 78% of all funds on offer. This award modified a previously awarded indefinite-delivery/indefinite-quantity, 10-year contract running from Nov. 21, 2005 through Nov. 21, 2015, under which Northrop will perform research, development, testing, and evaluation services for the development of the U.S. Missile Defense Agency's Ballistic Missile Defense System's Command, Control, Battle Management, and Communications division.

Northrop will support all information technology, facilities, ground and flight tests, warfighter wargames and exercises, and modeling and simulation work conducted by BMDS, and will in particular support the Ballistic Missile Defense Network Operations and Security Center, the Joint Functional Command Component for Integrated Missile Defense, and the 100th Missile Defense Brigade.

Originally valued at $2.5 billion, this contract will now be worth $3.25 billion to Northrop Grumman as a result of this contract modification.

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.

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