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Northrop Wins Joint Force Development Deal

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Defense contractor Northrop Grumman Corp. (NOC - Free Report) has lately been receiving a nice mix of big and small contracts from the Pentagon. The company has clinched a deal from the Naval Supply Fleet Logistics Center to provide support to the Joint Force Development (JFD) program in Suffolk.

The latest contract has a potential value of $877 million over five years, if all options are exercised. The deal calls for Northrop Grumman to continue providing logistics, intelligence, and technology support to the Joint Staff J7 Directorate for the JFD program in Suffolk. The support extensively involves the planning and execution of joint events, collective and individual joint training, Joint and Coalition Operational Analysis, joint doctrine, Joint Deployment Training Center, Service Joint Training Environment, and Joint Knowledge Online.

JFD provides joint training support for the Department of Defense, Combatant Commands Services, select U.S. government agencies and multinational/coalition partners worldwide. Joint Staff J7 through JFD is entitled to facilitate the Chairman Joint Chiefs of Staff and the joint warfighter to boost operational effectiveness of the current and future joint forces.

Northrop Grumman has been committed to preparing the nation’s warfighters for any unforeseen event through the JFD program for the past 18 years. The company’s revenues and earnings growth continue to be driven by its strong presence in the current focus areas of cyber security, modernization of defense and homeland security assets, intelligence, surveillance and reconnaissance (ISR) systems, advanced electronics and software development.

Recently, this Los Angeles-based defense contractor won a significant award, worth $9.9 billion, from the U.S. Air Force to offer modernization and support services to the B-2 stealth bomber program. The contract calls for a broad range of enhancements, sustainment logistics services including engineering, software maintenance and support equipment. Additional services like depot maintenance of the aircraft fleet and other interim support are also a part of the contract requirements.

Although defense giants like Lockheed Martin Corp. (LMT - Free Report) , The Boeing Company (BA - Free Report) and Northrop continue to vie for DoD contracts, the ongoing sequestration seems to have had a moderate impact.

Currently, Northrop carries a Zacks Rank #3 (Hold). Another better-placed defense operator is Embraer SA (ERJ - Free Report) , carrying a Zacks Rank #1 (Strong Buy).

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