Northrop Grumman Corporation
(
NOC
) has received a $100 million contract from the U.S. Army as part
of an Operations Planning Training and Resource Support Services
(OPTARSS) II contract. Per the deal, Northrop will continue to
provide support to the III Corps Mission Command Training
Center.
The five-year contract includes one base year and four option
years. Per the contract, the company will provide training to the
Army mission command systems, simulation-driven staff training
exercises, and immersive training to the squad.
In March 2011, the company had received a $2.5 billion contract
to provide OPTARSS II to the US Army. OPTARSS II is a master,
indefinite delivery indefinite quantity, multiple award task order
contract that is made to provide utmost flexibility for an
expedited ordering process to satisfy the needs of operations
customers throughout the Army and Department of Defense (DoD). The
OPTARSS II program is important for the Army as it provides
innovative training solutions that help to conquer emerging and
unconventional threats and ensure overall success in a mission.
Northrop Grumman has been providing similar services to the Army
since 2003. The team is highly efficient and possesses technical
expertise to rapidly meet requirements under the OPTARSS II
program. Going forward, the company plans to increase its
opportunities for the OPTARSS II team to pursue such similar
programs for the U.S. Army.
The company has a strong presence in Air Force, Space &
Cyber Security programs. Revenue and earnings growth continue to be
driven by its strong presence in the focus areas of cyber security,
defense modernization and homeland security assets, intelligence,
surveillance and reconnaissance (
ISR
) systems, advanced electronics and software development.
However, these positives are offset by apprehension regarding
defense budget cutbacks on high-cost platform programs,overexposure
to the (DoD) budget, lower backlog, cost overruns and reductions in
the Afghanistan and Iraq operations. The company presently retains
a short-term Zacks #4 Rank (Sell). We have a long-term Neutral
recommendation on the stock.
Northrop Grumman 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 worldwide. Some of its main
competitors include
General Dynamics Corporation
(
GD
) and
Lockheed Martin Corporation
(
LMT
).
GENL DYNAMICS (
GD
): Free Stock Analysis Report
LOCKHEED MARTIN (
LMT
): Free Stock Analysis Report
NORTHROP GRUMMN (
NOC
): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment
Research