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Defense contractor, Northrop Grumman Corporation (NOC: 61.7794 -0.0506 -0.08%) continues to grow its order book receiving contracts from the U.S. Army as well as the Air Force. Both the contracts will run for five years.
Yesterday, the U.S. Army showered a $77.9 million contract on Northrop to support its Air and Missile Defense Workstation (AMDWS) development. The company also signed a $99 million deal with the U.S. Air Force to perform base security operations and support services at overseas U.S. air bases.
Under the Army contract, Northrop will continue to provide software development and lifecycle support for the AMDWS Block 4. The company’s work will involve the development of facilitating technologies to evolve AMDWS capabilities and provide engineering, implementation, test, site and training support.
AMDWS provides a composite air defense picture to warfighters and air and missile defense planning and situational awareness capabilities throughout the Army. Northrop is the prime contractor for the development, fielding and maintenance of the AMDWS system and received the first AMDWS contract in June 1996. Northrop said its management team in Carson takes care of the work under the AMDWS program, carrying out the work at its facilities in Carson and Huntsville, Alabama.
Under the contract awarded by the U.S. Air Force Central Command (AFCENT), Northrop will perform various training, management and administrative tasks continuing to provide security services for its air bases. Northrop Grumman has been providing support for the AFCENT contract since 2005.
Northrop Grumman Technical Services provides a wide range of logistics, services and training at the departments of Defense, Energy and State, and other governmental agencies both in the United States and internationally.
Los Angeles-based Northrop Grumman is a defense and aerospace company supplying a broad array of products, services and solutions in aerospace, electronic systems, information technology, shipbuilding and technical service sectors.
Northrop Grumman is the third largest U.S. defense contractor, after The Boeing Company (BA: 75.69 +0.62 +0.83%) and Lockheed Martin Corporation (LMT: 77.99 +0.11 +0.14%) in terms of fiscal 2010 revenue, with a major platform-centric focus. The company has a strong presence in Air Force, Space & Cyber Security programs.
Northrop Grumman currently retains a Zacks #3 Rank (short-term Hold rating), which supports our long-term Neutral rating on the stock.