Northrop Grumman Awarded $114M for Materials

Monday, April 26, 2010

The U.S. Navy awarded a $114m contract modification to Northrop Grumman Corporation (NYSE:NOC) to provide long lead materials for the company's 30th DDG 51 class Aegis guided missile destroyer. The materials purchased will be used in the construction of DDG 114.

In April 2009, the U.S. Navy announced Northrop Grumman would be awarded contracts for the first two destroyers in the DDG 51 program continuation. The company has delivered 26 of 28 ships, with two more ships currently under construction in Pascagoula.

This award is a modification of a contract awarded in December 2009 when the U.S. Navy awarded $171m for long lead material purchases for DDG 113.

This contract modification will allow the company's supply chain program to begin purchasing propulsion gas turbines, generators, controllable pitch propeller, and other components to support construction of DDG 114.

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