Pentagon Awards Northrop $14.1 Million Anti-IED Contract
On Friday, the Department of Defense awarded a $14.1 million contract to defense contractor Northrop Grumman's Space and Mission Systems subsidiary, exercising an option to extend a contract originally awarded to the contractor back in October 2009 .
The contract in question is a firm-fixed-price contract to support the development of a system to jam radio signals that are used to trigger improvised explosive devices (IEDs). This program is generally known by the decidedly unmilitary, preppy acronym "JCREW" -- which stands for "Joint Counter Radio-Controlled Improvised Explosive Device (RCIED) Electronic Warfare (JCREW)." It's designed to develop anti-IED technologies to protect both mounted and dismounted troops, their vehicles, and also permanent structures, and was originally conceived -- and awarded to Northrop as the developer -- in a contract awarded by the Naval Sea Systems Command (NAVSEA), back in January 2008 .
Historically, several firms have been involved in the JCREW effort, with privately-held defense contractor Sierra Nevada and publicly-held ITT -- specifically, an ITT division spun off in 2011 as Exelis -- winning the bulk of the contracts.
At five years and counting, however, Northrop is arguably the longest-serving member of the coalition of companies working to develop a solution to radio-controlled IEDs. Northrop shares closed down 0.5% at the end of Friday trading, at $67.07, ahead of the Pentagon's announcement.
The article Pentagon Awards Northrop $14.1 Million Anti-IED Contract originally appeared on Fool.com.Rich Smith has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.