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Northrop Grumman's Unit Wins $70M Navy Deal to Develop PORTS

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Northrop Grumman Corp.'s (NOC - Free Report) business subsidiary, Northrop Grumman Systems Corp., recently secured a contract worth $70.3 million for the development and delivery of the PC-based Open-architecture for Reconfigurable Training Systems (PORTS). The contract was awarded by the Naval Air Warfare Center Training Systems Division, Orlando, FL.

Details of the Deal

Per the terms, Northrop Grumman Systems Corp. will provide PORTS life cycle support for the U.S. Navy's reconfigurable training systems. This includes training system modifications, Training Equipment Change Request (TECR) corrections and simulation software product delivery for PORTS-related trainers, alongside other support services.

Majority of the work related to the deal will be executed in Middletown, RI. Tasks related to the deal are expected to get completed by July 2025.

What Favors Northrop Grumman?

Northrop Grumman is one of the leading providers of a complete spectrum of cyber capabilities supporting the defense and intelligence community customers. The company has been involved in a decades-long partnership with the U.S. Navy for the creation and enhancement of PORTS training systems, and other software systems and solutions that are less expensive and easier to build and operate. This, in turn, has enabled the company to clinch contracts related to software development, like the latest one.

Looking ahead, the U.S. fiscal 2021 defense budget proposal has provisioned for investments worth $9.8 billion in the cyberspace domain. Such budgetary developments will benefit Northrop Grumman in the upcoming period, in the form of contract acquisitions related to the development of PC-based training systems and other cyber programs. Alongside Northrop Grumman, such stupendous budgetary amendments will also benefit cyber and software product developers, such as Lockheed Martin (LMT - Free Report) , Raytheon Technologies (RTX - Free Report) and General Dynamics (GD - Free Report) .

Price Performance and Zacks Rank

Shares of this Zacks Rank #3 (Hold) company have lost 10.1% in the past twelve months compared with the industry’s decline of 32.6%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.



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