Northrop Receives DISA Contract - Analyst Blog

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Northrop Grumman Corp. ( NOC ) has been selected to support the Defense Information Systems Agency (DISA), a unit of the U.S. Department of Defense (DOD), to update and maintain the command and control (C2) system for the Global Command and Control System-Joint (GCCS-J) engineering support services. Northrop Grumman's Information Systems segment will be responsible for this order.

The contract comes under the U.S. DOD's Encore II contracting vehicle. The agreement authorizes initial funding of $58 million and has maximum potential value of $211 million over 54 months, if all options are applied.

The U.S. DOD uses the C2 system to deliver correct, absolute and timely information for the armed forces' operational chain of command.

The GCCS-J program offers global connectivity with lesser life cycle costs at every level of command. This service integrates numerous systems meant for situational understanding, intelligence support, force planning, rapid assessment, and deployment applications, which battlefield commanders need to plan and implement joint military operations. In addition, this program offers systems and security engineering, force protection, C2 and intelligence support to defense personnel.

The DISA offers global information and technological support through an online platform to the armed forces and the DOD. Its main aim is to supply secure and reliable communications networks, computers, databases and software to the DOD. DISA enables the U.S. military forces to stay connected irrespective of their location, gathers intelligence for crucial missions and receives accurate and secure information on potential threats.

The contract offers sophisticated operations, and engineering services along with required equipments and amenities to support lifecycle management of the services. Apart from Northrop Grumman, other members in DISA contracts include General Dynamics Corporation ( GD ), Raytheon Company ( RTN ), SAP AG ( SAP ) and other specialized organizations.

Northrop Grumman's strength lies in its strong order backlog, which stood at $40.8 billion for full year-2012. Moreover, its cyber security offering, constant upgrading of defense and homeland security assets, intelligence, surveillance and reconnaissance systems, advanced electronics and software development businesses are expected to be the major top-line churners, going forward.

Falls Church, VA-based Northrop Grumman offers products, services, and solutions in aerospace, electronics, information systems, and technical services worldwide. The company currently has a Zacks Rank #3 (Hold).



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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: DOD , GD , NOC , RTN , SAP

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