Northrop Awarded Contract

National Security Technologies, LLC (NSTec), a joint venture led by Northrop Grumman Corporation (NOC - Analyst Report), was awarded a contract extension by the United States National Nuclear Security Administration (NNSA). NNSA awarded NSTec a one-year, cost-reimbursement and operating contract extension valued at approximately $450 million to manage and operate the Nevada Test Site (NTS) through 2013. The contract was originally awarded to the Northrop Grumman led joint venture in 2006. 

Under the terms of the contract, NSTec manages and operates the NTS facility and provides infrastructure support. The contract also supports hazardous chemical spill testing and emergency response training. NSTec also operates facilities for the NNSA in California, New Mexico and Maryland. 

Northrop Grumman is the managing partner of the joint venture that includes team members AECOM Technology Corporation (ACM - Snapshot Report), CH2M Hill, and Nuclear Fuel Services. AECOM is one of the world's largest architecture and engineering firms. CH2M Hill has expertise in environmental and waste management. Nuclear Fuel Services brings extensive experience in nuclear operations as the provider of nuclear fuel for the US Navy’s fleet of aircraft carriers and submarines. 

Northrop Grumman’s future success in the competitive defense industry depends upon its ability to develop and market its defense-related products and services to the U.S. Government, as well as its ability to provide people, technologies, facilities, equipment and financial capacity needed to deliver those products and services at maximum efficiency. The company competes with Force Protection Inc. (FRPT), General Dynamics Corporation (GD - Analyst Report) and Boeing Company (BA - Analyst Report). 

Based in Los Angeles, California, Northrop Grumman provides products, services and solutions in information and services, aerospace, electronics and shipbuilding to the military, government and commercial customers of United States and beyond. The company is the largest IT service provider to the federal government. In addition, Northrop Grumman is the only nuclear-powered aircraft shipbuilder in the United States. We maintain our Neutral recommendation on the shares.

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