Northrop Grumman Corp. (NOC - Free Report) has received a U.S. Navy contract to continue its counter improvised explosive device support for the Navy. This is a modification contract valued at $103.4 million.
Per the contract, Northrop Grumman will start low-rate initial production of the U.S. Navy’s Joint Counter Radio-Controlled Improvised Explosive Device or RCIED Electronic Warfare Joint Crew (JCREW) Increment One Build One system. The company will provide counter radio-controlled-IED systems, which protect combat troops against IEDs.
The first generation of Joint Crew systems is designed to provide protection for worldwide military operations. This particular version develops a common open architecture across all three capabilities, according to the Defense Department (DoD).
The DoD further added that the Naval Sea Systems Command oversees JCREW as a joint program in support of the requirements of the Navy and the Air Force.
Work will be performed in San Diego, CA, Beaverton, OR, Rochester, MN, Santa Ana, CA and Sierra Vista, AZ, and is expected to be completed in Sep 2018.
Northrop Grumman is the fourth-largest U.S. defense contractor after The Boeing Company (BA - Free Report) , Lockheed Martin Corp. (LMT - Free Report) and General Dynamics (GD - Free Report) in terms of 2015 revenue, with a major platform-centric focus. The company has a strong presence in the Air Force and Space & Cyber Security programs. Northrop’s product line is well positioned in high-priority categories, such as defense electronics, unmanned aircraft and missile defense. The company continues to witness robust demand for its products from the Pentagon.
In late June, a Northrop Grumman unit, Aerospace Systems, won a modification contract from the U.S. Air Force to provide logistic and sustainment services for the Global Hawk program. The contract is valued at $203.6 million and contracting activity is the Air Force Life Cycle Management Center, Robins Air Force Base, GA.
Earlier last month, another Northrop business unit, Space & Mission Systems, secured a modification contract from the missile defense agency to extend the period of performance of task orders. While the current contract is valued at $600 million, thanks to the extension, the total contract value will go up to $3.85 billion from $3.25 billion.
Currently, Northrop Grumman carries a Zacks Rank #2 (Buy).
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