Northrop Grumman Corporation
) has received an order from the Virginia Contracting Activity of
the U.S. Army to provide support to the Regional Joint Intelligence
Training Facility ("RJITF"). The total deal is valued at $52
million, including the customary one-year base period and four
one-year extension options.
Per the agreement, Northrop Grumman will provide training and
educational support to the armed forces of the U.S., The North
Atlantic Treaty Organization ("NATO") and its European and African
Since the past decade, the U.S. Army has been imparting training
and professional knowledge to intelligence work forces of its
European Union and African Commands and to that of its
international partner countries, as part of the RJITF program.
These skilled and effective work forces will help the leadership
of the U.S. defense establishments and its allied nations to take
proper decisions in dynamic operational situations. This facility
enables the U.S. and its allies to mitigate their domestic and
international operational challenges and at the same time
strengthen homeland security.
This kind of technical assistance is provided by Northrop
Grumman's Technical Services Division. This segment provides
long-term technical services, systems support, and training and
program engineering. In the first quarter of 2012, this segment
generated revenue of $750 million, constituting 12% of Northrop
Grumman's total sales.
Northrop Grumman has a strong track record when it comes to
providing training assistance to national and international armed
forces, and has been awarded contracts regularly. Last month, the
company received a three-year indefinite delivery, indefinite
quantity contract, worth $84 million, from the U.S. Navy. Per the
agreement, the company will provide planning and assessment,
curriculum development, and computer-based modeling and simulation
training solutions to the Naval Education Training Command.
We believe that Northrop Grumman is well positioned with a
strong presence in the areas of cyber security, defense
modernization and homeland security systems, intelligence,
surveillance and reconnaissance systems, sophisticated electronics
and software development.
The company's backlog is expected to see further upside in the
near future through unmanned aerial vehicle ("UAV") platforms,
including Broad Area Maritime Surveillance ("BAMS"), and Fire Scout
and Navy Unmanned Combat Air System ("UCA").
Apart from that, Northrop Grumman's product line in high
priority categories like defense electronics, unmanned aircraft and
missile defense, gives the company an edge over its peers like
General Dynamics Corporation
Lockheed Martin Corporation
Northrop Grumman Corporation currently retains a Zacks #2 Rank,
which translates into a short-term Buy rating.
Los Angeles-based Northrop Grumman Corporation is a leading
global security company, providing innovative systems, products and
solutions in aerospace, electronics, information systems, and
technical services to government and commercial customers
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