Northrop Grumman Wins $63 Million Navy Combat Drone Contract

The Department of Defense awarded $2.2 billion worth of defense contracts in its Thursday evening announcement of contract awards, released after stock markets closed for the day, handing out 17 separate contract awards. Defense contractor Northrop Grumman (NYSE: NOC  ) won four of them.

Northrop's biggest win was a $63.1 million contract modification funding continuation into Phase II of post-demonstration activities in support of the U.S. Navy's Unmanned Combat Air System (UCAS) program. Northrop will continue to support the X-47B drones it has already provided to the Navy, including through flight testing both on shore and at sea, through March 2015.

Northrop Grumman's X-47B unmanned, carrier-borne combat drone. Photo: Wikimedia Commons.

The defense contractor's other wins included:

  • A $15.2 million firm-fixed-price contract to repair AN/ALQ-135 Electronic Countermeasures Systems for Saudi Arabia. This sole-source, 100%-foreign military sales contract will run through June 25, 2015.
  • A $15 million contract modification to perform additional research and development work on the U.S. Army's Advanced Electronic Protect, Integrated Air and Missile Defense (IAMD) System of Systems capability, and the IAMD Battle Command System, continuing to move the project through development and into the demonstration phase. The Army describes the IAMD project as combining sensors and weapons including "Improved Sentinel, PATRIOT radars, PATRIOT launchers and the Joint Land Attack Cruise Missile Defense Elevated Netted Sensor (JLENS)" into a single, integrated, "plug and fight" system for air defense. This contract will now continue to run through at least Sept. 30, 2015, after which the Army anticipates making a decision on whether to proceed to production and deployment.
  • An $8.2 million ceiling-priced delivery order to repair 51 line items relating to the Advanced Hawkeye airborne early warning system installed on U.S. Navy E-2D AEW aircraft. These repairs should be completed by June 25, 2015.

Discover a top stock pick for 2014
Every year, The Motley Fool's chief investment officer handpicks one stock with outstanding potential. Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.

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

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.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 3010280, ~/Articles/ArticleHandler.aspx, 8/31/2015 8:20:33 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...

Rich Smith

As a defense writer for The Motley Fool, I focus on defense and aerospace stocks. My job? Every day of the week, I'm monitoring the news, figuring out the winners and losers, and tracking down the promising companies for you to invest in. Follow me on Twitter or Facebook for the most important developments in defense & aerospace, and other great stories.

Today's Market

updated Moments ago Sponsored by:
DOW 16,528.03 -114.98 -0.69%
S&P 500 1,972.18 -16.69 -0.84%
NASD 4,776.51 -51.82 -1.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

8/31/2015 4:06 PM
NOC $163.74 Down -1.80 -1.09%
Northrop Grumman C… CAPS Rating: *****