Northrop Grumman Corporation
(
NOC
) has received a contract for the Block II Modification of an E-6B
Mercury aircraft from the Naval Air Systems Command for $44.3
million. Per the contract, the company will integrate high-speed,
secure communications and networking systems on the E-6B
aircraft.
This contract is part of the Take Charge and Move Out (TACAMO)
strategic communications relay mission. The company will design and
produce networking and communications systems. First, it will
integrate the systems into the E-6B Systems Integration Laboratory
and then on a single E-6B aircraft. It will also provide testing,
logistics and training to assist operational fielding.
These E-6B aircrafts help in providing endurable and reliable
airborne command, control and communications between the president
of the United States, secretary of Defense, and U.S. strategic and
non-strategic forces. Due to this contract, the E-6B aircraft will
now be able to connect to secure U.S. Department of Defense (DoD)
networks at high data rates even during flights.
Moreover, the upgrade will allow users to access information
that is essential for their mission from worldwide sources without
affecting the operational performance of the aircraft.
Northrop has a strong presence in the Air Force, Space &
Cyber Security programs. Its product line is well positioned in
high priority categories, such as defense electronics, unmanned
aircraft and missile defense. Even in this budget constrained
environment, the company's novel approach facilitates customers to
exploit emerging technologies for vital defense missions such as
TACAMO. The company's diversified revenue and earnings stream also
provide support.
However, these positives are offset by apprehensions regarding
defense cutbacks on high-cost platform programs, over-exposure to
the DoD budget, cost over-runs and reductions in the Afghanistan
and Iraq operations.
Los Angeles-based Northrop Grumman supplies a broad array of
products and services to the DoD, including electronic systems,
information technology, aircraft, space technology, and systems
integration services. The company mainly competes with
The Boeing Company
(
BA
) and
Lockheed Martin Corporation
(
LMT
).
BOEING CO (BA): Free Stock Analysis Report
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