Northrop Grumman Corporation
(
NOC
) clinched a six-year contract to upgrade the current
instrumentation systems at the National Training and Joint
Readiness Training centers. The contract was received from the
U.S. Army Program Executive Office for Simulation, Training and
Instrumentation ("PEO STRI") for an undisclosed amount.
The National Training and Joint Readiness Training outfits are
located in Fort Irwin, California and Forth Polk, Louisiana,
respectively. These centers offer real-life simulation exercises
for the training of land forces at the combat level which also
includes secondary and supporting units in a plethora of military
operations.
Per the contract, Northrop Grumman will offer its services in
improving the observer controller communications part of the
present range communications system at the National Training
center and also the range data measurement system.
Similarly, at the Joint Readiness Center, the company will
modernize the observer controller communications and range data
measurement systems.
The project, Combat Training Center Instrumentation System
("CTC-IS"), will substitute technical features like legacy voice,
video, data and target instrumentations system and networks.
Apart from this, Northrop will enhance other technical mission
necessities like mobile video units, unmanned aerial vehicle
ground control station interface, forward operations base
interface as well as the stationed and portable after-action
theaters.
The purpose behind the modernization program is to create a
cohesion between the components of a tangible training system and
a widened communications base. The program will accentuate
situational awareness in live combat exercises; improve analysis
and provide timely feedbacks of training performances and address
all other important needs to prepare U.S. soldiers on critical
missions.
Looking forward, we anticipate this endeavor will prove to be
profitable and help fetch lucrative returns for the company.
Northrop sustained its string of contract wins by recently
securing an $80 million deal for the
indefinite-quantity/indefinite-delivery of Next Generation
Command and Control Processor ("NGC2P") Technology Refresh and
Link 22 development to the Space Naval and Warfare System
Command.
The company has potential upside opportunities so far as
backlog orders are concerned by virtue of its unmanned aerial
vehicle ("UAV") programs involving Broad Area Maritime
Surveillance ("BAMS"), Fire Scout and Navy Unmanned Combat Air
System ("UCA").
However, the U.S. government's decision to cut back spending
in the defense sector will cast a shadow on the company's
prospects. This negative trigger is reflected in the company's
Zacks Consensus Estimate for the last quarter of 2012 which slid
6.05% year over year to $1.74 per share. Nonetheless Northrop
Grumman currently carries a Zacks Rank #3 (Hold).
Another player in the aerospace and defense domain is
General Dynamics Corporation
(
GD
). The company recently won a $32 million contract from Northrop
Grumman for providing software related to the Communications
Ground Control System for NATO's Alliance Ground Surveillance
("AGS") program.
Based in Falls Church, Virginia, the $16.54 billion company
provides products, services, and solutions in aerospace,
electronics, information systems, and technical services
worldwide.
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