Northrop Gets New Army Deal

Northrop Grumman (NOC - Analyst Report) along with four other syndicates of companies has received an indefinite delivery/indefinite quantity contract from the U.S. Army for providing automatic identification technology hardware, software and engineering services. The project will be carried out over a span of three years, with provisional extension of two years and four years. The total value of the contract is capped at $418.5 million.

As per the assignment, Information Systems division of Northrop Grumman will deliver mobile computers with software, scanners, barcode printers, wireless technology, item unique identification with part marking, and armory management kits to the U.S. Army. The company will also provide technical engineering services – including design, development, integration, deployment, training and data management – for implementing the automatic identification technology across the U.S.. Department of Defense and federal agency logistics systems.

Northrop Grumman will work with the following syndicates of companies under the project: Williams Software Associates; Onyx Government Services Inc. and XIO Strategies Inc.; CYTEC Software Systems Inc.; and Evanhoe and Associates and Motorola.
 
Shares of Northrop Grumman closed at $46.63 on Tuesday. We maintain our Neutral recommendation for the company.

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