Northrop Grumman Secures $204M Contract For Global Hawk

Falls Church, VA-based Northrop Grumman Corp. (NYSE:NOC) announced that its unit, Aerospace Systems, has won a modification contract from the U.S. Air Force to provide logistic and sustainment services for the Global Hawk program.

The contract is valued at $203.6 million and contracting activity is the Air Force Life Cycle Management Center, Robins Air Force Base, GA.

Per the contract, Northrop Grumman will offer additional services and materials for planning, operations and maintenance.

Work is scheduled to be complete by Aug 2019 and will be performed in San Diego, CA. The contract will use fiscal 2016 operations and maintenance funds.

Global Hawk is an unmanned aircraft intelligence, surveillance and reconnaissance system capable of flying high altitudes and long hours.

Global Hawk gained massive popularity mainly on the ability to transform itself into an operational weapons system as and when required. It was not only used by the Air Force for maintaining overseas surveillance, but has also been employed extensively by the National Aeronautics and Space Administration (“NASA”) for scientific research missions.

Northrop Grumman is the fourth-largest U.S. defense contractor after The Boeing Company (NYSE:BA) , Lockheed Martin Corporation (NYSE:LMT) and General Dynamics (NYSE:GD) in terms of 2015 revenue, with a major platform-centric focus. The company has a strong presence in the Air Force, and Space & Cyber Security programs. Northrop’s product line is well positioned in high-priority categories, such as defense electronics, unmanned aircraft and missile defense. The company continues to witness strong demand for its Global Hawk program on a global scale.

The company currently has a Zacks Rank #3 (Hold).

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