Northrup Grumman Wins Joint Mission Contract

June 8, 2011
Cyber Security, FedCyber Wire
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Northrop Grumman Corporation (NOC – Analyst Report) has received a $19 million contract to enhance and maintain the Joint Mission Planning System (“JMPS”) Framework from the U.S. Air Force. The delivery order was awarded under the Mission Planning Enterprise Contract (“MPEC”) II from the Electronic Systems Center, Hanscom Air Force Base, Massachusetts.

The JMPS Framework comprises the core elements and functions of the JMPS family and helps to automate planning for sensor, weapon or aircraft missions. Under the contract, Northrop will improve the JMPS Framework by architecting a shared mapping capability for eliminating multiple, independent mapping products.

The Northrop Grumman team includes DCS Corp., Alexandria, Virginia; Idaho National Laboratory, Idaho Falls, Idaho; and The Software Revolution Inc., Kirkland, Washington. Under the direction of the Electronic Systems Center, Northrop will be responsible for simplifying and reducing product maintenance, improving mission planning processing runtime and facilitating the integration and test of new applications. The company will also modernize the software to optimize computing resources, provide a more enhanced plug-in capability for components and applications and enable modular installations.

Northrop’s product line is well positioned in high priority categories, such as defense electronics, unmanned aircraft and missile defense. Revenue 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 systems, advanced electronics and software development.

However, this will be offset by apprehensions regarding defense cutbacks on high-cost platform programs, over-exposure to the DoD budget, cost over-runs and substantial exposure to missile-defense-related programs. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

Los Angeles-based Northrop Grumman Corporation is the third largest defense contractor in the U.S., the first two being The Boeing Company (BA – Analyst Report) and Lockheed martin Corporation (LMT – Analyst Report), in terms of trailing twelve months sales. The company supplies a broad array of products and services to the U.S. Department of Defense (DoD), including electronic systems, information technology, aircraft, space technology, and systems integration services.

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