Northrop Grumman Corp.
) has lately been receiving a nice mix of big and small contracts
from the Pentagon. The company has clinched a deal from the Naval
Supply Fleet Logistics Center to provide support to the Joint Force
Development (JFD) program in Suffolk.
The latest contract has a potential value of $877 million over five
years, if all options are exercised. The deal calls for Northrop
Grumman to continue providing logistics, intelligence, and
technology support to the Joint Staff J7 Directorate for the JFD
program in Suffolk. The support extensively involves the planning
and execution of joint events, collective and individual joint
training, Joint and Coalition Operational Analysis, joint doctrine,
Joint Deployment Training Center, Service Joint Training
Environment, and Joint Knowledge Online.
JFD provides joint training support for the Department of Defense,
Combatant Commands Services, select U.S. government agencies and
multinational/coalition partners worldwide. Joint Staff J7 through
JFD is entitled to facilitate the Chairman Joint Chiefs of Staff
and the joint warfighter to boost operational effectiveness of the
current and future joint forces.
Northrop Grumman has been committed to preparing the nation's
warfighters for any unforeseen event through the JFD program for
the past 18 years. The company's revenues and earnings growth
continue to be driven by its strong presence in the current focus
areas of cyber security, modernization of defense and homeland
security assets, intelligence, surveillance and reconnaissance
(ISR) systems, advanced electronics and software development.
Recently, this Los Angeles-based defense contractor won a
significant award, worth $9.9 billion, from the U.S. Air Force to
offer modernization and support services to the B-2 stealth bomber
program. The contract calls for a broad range of enhancements,
sustainment logistics services including engineering, software
maintenance and support equipment. Additional services like depot
maintenance of the aircraft fleet and other interim support are
also a part of the contract requirements.
Although defense giants like
Lockheed Martin Corp.
The Boeing Company
) and Northrop continue to vie for DoD contracts, the ongoing
sequestration seems to have had a moderate impact.
Currently, Northrop carries a Zacks Rank #3 (Hold). Another
better-placed defense operator is
), carrying a Zacks Rank #1 (Strong Buy).
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