Boeing Can’t Be Seen As Taking Advantage Of Being Sole Bidder

Now, that Boeing is the only bidder on the KC-X, the Seattle Times notes that Boeing now has to make sure that it is not seen as taking advantage of being the sole bidder:

Northrop Grumman walked away from the $40 billion Air Force refueling-tanker competition Monday, drawing a widely criticized and nearly decadelong procurement process close to an outright Boeing victory.

With the likely prospect of air tankers rolling out of Everett until around 2027 at least, the outcome could secure as many as 2,000 direct jobs in Everett and an additional 6,000 statewide at suppliers and others, according to previous Boeing estimates.

Yet Northrop’s withdrawal leaves Boeing with a pricing dilemma as it prepares a final bid. The Pentagon, embarrassed by the lack of competition, now will be under extra scrutiny over what it pays for its tankers.

On one hand, because the contract is a fixed price — meaning the winner must swallow the loss if program costs escalate beyond the price it bids — Boeing typically would be expected to aim high, especially with no competition.

At the same time, Boeing will want to avoid the appearance that it is taking advantage of Northrop’s withdrawal to jack up the price.

“This competition was supposed to be a model for future procurement,” said Issaquah-based aviation analyst Scott Hamilton of Leeham.net. “It’s clear the Department of Defense fell short again in running a procurement process that works.”

The contract is to supply the Air Force with 179 tankers used to refuel fighter, transport and bomber aircraft en route to their targets.

Northrop had teamed with EADS, parent of European planemaker Airbus, to offer a tanker based on the Airbus A330.

In 2008, the Defense Department cited a rough contract value of $35 billion, or about $196 million per airplane, plus an extra $5 billion in operational support and other costs.

Certainly, the rivalry in the previous round of the tanker competition between the Boeing 767 and the A330 drastically reduced the cost to the taxpayer.

Read the entire article at the Seattle Times.

JHPSSL Program Receives Acclaimed Laureate Award From Editors of Aviation Week and Space Technology Magazine

JHPSSL Program Receives Acclaimed Laureate Award From Editors of Aviation Week and Space Technology Magazine
March 18, 2010

REDONDO BEACH, Calif. –– The Defense Department's Joint High Power Solid State Laser (JHPSSL) Phase 3, built by Northrop Grumman Corporation (NYSE:NOC), has been selected for the prestigious Laureate Award in the IT/Electronics category.

Aviation Week and Space Technology, the industry's premier news publication, bestowed the award at a black-tie event March 17, 2010 at
the Andrew Mellon Auditorium in Washington, D.C. Laureate awards recognize individuals and teams for their extraordinary accomplishments that embody the spirit of exploration, innovation and vision.

"This award is testament to our capabilities and performance in successfully transforming solid state lasers from a promising
technology to a robust capability with the proven attributes to enable application to the evolving security needs of our nation," said Dan Wildt, vice president of Directed Energy Systems at Northrop Grumman Aerospace Systems.

"When the program began four years ago, few believed that solid-state lasers could produce a militarily significant 100kW beam.
Our JHPSSL team proved not only that it could be done, but that it could be done reliably and repeatedly through an innovative, power
scalable approach that has surpassed expectations and for which power limits have yet to be tested."

The JHPSSL team, led by program manager Jay Marmo, became the first to meet or exceed the requirements of a U.S. Defense Department
initiative to demonstrate a solid-state laser capable of producing 100 kilowatts of laser power over a sustained period while maintaining a tightly focused, highly concentrated light beam. This new capability supports self-defense missions from diverse threats such as rockets, artillery, mortar, swarming boats, unmanned aerial vehicles, aircraft and cruise missiles. Ultra-precision strike becomes practical from a variety of ground, sea or air-based platforms while minimizing the risk of collateral damage. Northrop Grumman has been the world's leading supplier of high-energy laser systems, subsystems and components for over 40 years.

The military customer for JHPSSL is the Office of the Secretary of Defense, High Energy Laser Joint Technology Office in Albuquerque,
N.M. Phase 3 was managed by the U.S. Army's Space and Missile Defense Command/Army Forces Strategic Command, Huntsville, Ala.

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Northrop Grumman Begins Installing First EHF Satcom Hardware on B-2

Northrop Grumman Begins Installing First EHF Satcom Hardware on B-2
March 17, 2010

EDWARDS AIR FORCE BASE, Calif. – Northrop Grumman Corporation (NYSE:NOC) technicians here have begun installing the first set of hardware for a B-2 stealth bomber upgrade that will eventually allow the jet to send and receive battlefield information up to 100 times faster than its current satellite communications system. The work is being done as part of Increment 1 of the U.S. Air Force's B-2 extremely high frequency (EHF) satellite communications program.

Northrop Grumman is the Air Force's prime contractor for the B-2 Spirit, the flagship of the nation's long range strike arsenal, and
one of the world's most survivable aircraft systems. The B-2 is the only combat-proven stealth platform in the current U.S. inventory.

"EHF Increment 1 puts in place the high speed data handling infrastructure that the B-2 will need to perform its most advanced
communications and weapons delivery missions in the future," said Col. Kevin Harms, USAF, Commander, 702nd Aeronautical Systems Group. "The beginning of hardware installation means that we are making solid progress getting this new capability out of the lab and into the hands of the warfighter."

"The installation of EHF Increment 1 hardware also means that we're nearly done with a significant task of software development, integration and testing for the program," added Dave Mazur, Northrop Grumman's vice president of long range strike and B-2 program manager.

According to Mazur, the new software was developed, integrated and tested by Northrop Grumman employees working at the Air Force's
Weapon Systems Support Center, Tinker AFB, Okla. Ground testing of the EHF Increment 1 hardware is planned for March, with flight testing expected to begin in April.

The first "kit" of EHF Increment 1 hardware includes:

-- A new integrated processing unit (IPU) developed by Lockheed Martin Systems Integration, Owego, NY., that will replace up to a dozen current stand-alone avionics computers on the B-2;

-- A new disk drive unit developed by Honeywell Defense and Space Electronic Systems, Plymouth, Minn., that will enable transfer of EHF data onto and off of the B-2; and

-- A network of fiber optic cable that will support the high speed data transfers within the aircraft.

The three-increment EHF Satcom program is part of an on-going effort by the Air Force and Northrop Grumman to modernize the B-2 to keep it fully mission capable against evolving enemy threats.

Increment 2 involves installation of a new communications terminal and new antennas that will allow the B-2 to transmit and receive information securely at EHF frequencies using the Advanced EHF satellite communications network. Increment 3 will integrate the B-2
into the U.S. Department of Defense's Global Information Grid, a worldwide network of information systems, processes and personnel
involved in collecting, storing, managing and disseminating information on demand to warfighters, policy makers and military support personnel.

The B-2 is the only U.S. aircraft that combines stealth, long range, large payload and precision weapons in a single platform. In
concert with the Air Force's air superiority fleet, which provides airspace control, and the Air Force's tanker fleet, which enables
global mobility, the B-2 helps ensure an effective U.S. response to threats anywhere in the world. It can fly more than 6,000 nautical
miles unrefueled and more than 10,000 nautical miles with just one aerial refueling, giving it the ability to reach any point on the globe within hours.

The 20-aircraft fleet of B-2s is operated by the 509th Bomb Wing from its headquarters at Whiteman AFB, Mo.

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Northrop Grumman Names Janis Pamiljans Vice President of the Navy Unmanned Combat Air System Program

Northrop Grumman Names Janis Pamiljans Vice President of the Navy Unmanned Combat Air System Program
March 17, 2010

SAN DIEGO - March 17, 2010 – Northrop Grumman Corporation (NYSE:NOC) has named Janis Pamiljans vice president of the Navy Unmanned Combat Air System (N-UCAS) program.

In this role, Pamiljans will manage the continued development of the N-UCAS program, readying the X-47B for first flight later this
year, and the first-ever autonomous launch and recovery operations from an aircraft carrier.

Pamiljans was most recently vice president and program manager of Northrop Grumman's aerial refueling tanker pursuit. His experience
in operations, engineering, and as program manager on F/A-18 and F-35 bring value to the N-UCAS program and the company's continued interest to yield a mature, low risk and cost-effective system for the future of U.S. Navy.

The N-UCAS program, born from the former Joint Unmanned Combat Air System (J-UCAS) program, leverages Northrop Grumman's commitment
and investment in technology development. The X-47B UCAS will demonstrate initial capability to produce a fighter-sized, survivable,
long range, high endurance and persistent platform for missions such as intelligence, surveillance and reconnaissance (ISR) and time-sensitive targeting and strike.

In 1987, Pamiljans joined Northrop Grumman as manager of Flight Test Engineering for the B-2 stealth bomber program. He later held
director-level leadership positions on the B-2 and F/A-18 E/F Hornet Strike Fighter programs in the areas of flight test, program
integration, production and integrated logistics support.

Pamiljans earned a bachelor's degree in aeronautical engineering from San Jose State University. He has completed the Advanced Management Program at the Harvard Business School, the Duke University Advanced Management Program, and the Defense Science Management College in Acquisition Management. Pamiljans is also a Flight Test Engineering graduate of the National Test Pilot School.

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Northrop Grumman Names Steven L. Enewold Vice President of Broad Area Maritime Surveillance Unmanned Aircraft System Program

Northrop Grumman Names Steven L. Enewold Vice President of Broad Area Maritime Surveillance Unmanned Aircraft System Program
March 17, 2010

BETHPAGE, N.Y. - March 17, 2010 - Northrop Grumman Corporation (NYSE:NOC) has named Steven L. Enewold vice president, Broad Area Maritime Surveillance Unmanned Aircraft System (BAMS UAS).

In this role, Enewold oversees all BAMS UAS activities and the continued development of the U.S. Navy's newest maritime surveillance
program designed to protect the fleet with a persistent maritime intelligence, surveillance and reconnaissance (ISR) system to search,
detect, track, classify and identify maritime and littoral targets.

Before leading the BAMS UAS team, Enewold was vice president and deputy integrated product team (IPT) leader for the High-Altitude
Long-Endurance (HALE) systems market segment at Northrop Grumman Aerospace Systems sector. Enewold helped oversee the continued
development, production, deployment, and support of the RQ-4 Global Hawk unmanned aerial reconnaissance system and provided guidance for and oversight of all domestic and international Global Hawk capture pursuits.

Enewold joined Northrop Grumman in 2007 following a 35-year U.S. Navy career from which he retired with the rank of rear admiral
after serving in various aviation capacities, including test pilot, systems engineer, and program manager.

Enewold earned a master's degree in aeronautical systems from the University of West Florida, is a graduate of the Air Force Test Pilot School, and has completed the Defense Acquisition University's executive management program

The Northrop Grumman BAMS UAS is a multi-mission maritime ISR system that will support a variety of missions while operating
independently or in direct collaboration with fleet assets. The BAMS UAS will be able to provide a continuous on-station presence while conducting open-ocean and littoral surveillance of targets. When operational, BAMS will play a key role in providing commanders with a persistent, reliable picture of surface threats, covering vast areas of open ocean and littoral regions, minimizing the need to utilize other manned assets to execute surveillance and reconnaissance tasks.

BAMS UAS is the latest addition to a growing family of unmanned systems developed by Northrop Grumman. The BAMS UAS system builds on
the company's extensive experience with autonomous flight control that includes thousands of flight hours by the combat-proven RQ-4 Global Hawk, the MQ-5B Hunter, the MQ-8 Fire Scout vertical takeoff and landing (VTOL) tactical unmanned system -- the first completely
autonomous VTOL aircraft to land aboard a Navy vessel underway -- and the X-47B Unmanned Combat Air System -- the first unmanned air vehicle scheduled to perform carrier landings.

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Northrop Grumman Awarded Planning Contract for the Refueling and Complex Overhaul of USS Abraham Lincoln (CVN 72)

Northrop Grumman Awarded Planning Contract for the Refueling and Complex Overhaul of USS Abraham Lincoln (CVN 72)
March 17, 2010

NEWPORT NEWS, Va. – March 17, 2010 – Northrop Grumman Corporation (NYSE:NOC) has been awarded a contract from the U.S. Navy initially valued at $80.1 million to accomplish planning work for the refueling and complex overhaul (RCOH) of the nuclear-powered aircraft
carrier USS Abraham Lincoln (CVN 72). If all options of the contract are exercised, the full potential value of the contract could reach
$678.6 million.

The company's Shipbuilding sector is the prime contractor for the work, which includes planning, design, documentation, engineering,
material procurement, shipboard inspections, fabrication and preliminary shipyard or support facility work.

"Lincoln's RCOH will be a large and complex project," said Jim Hughes,Northrop Grumman Shipbuilding's vice president of aircraft
carrier overhaul and carrier fleet support. "Advance planning for a project of this size is critically important to the success of the
overall effort. A group of experienced shipbuilders will partner with the Navy using lessons learned from the four previous RCOHs
accomplished at our Newport News shipyard to ensure the successful completion of this project from the planning stages to redelivery of the ship."

Christened in 1988 and delivered to the Navy in 1989, USS Abraham Lincoln is the fifth Nimitz-class carrier built by Northrop
Grumman Shipbuilding, the nation's sole designer, builder and refueler of nuclear-powered aircraft carriers. It will also be the fifth ship of the class to undergo this major life-cycle milestone. More than 1,000 employees will support the planning effort.

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Backers of Two Tanker Contracts Want To Stay Anonymous

The Wichita Eagle reports that the a group backing building both the Boeing and EADs tankers, doesn’t want to reveal its backers:
The investors backing a campaign asking the government to split its contract for aerial refueling tankers between Boeing and Northrop Grumman want to remain anonymous for now. The campaign is called Build Them Both. “We are funded by a group of investors who have asked to remain nameless at this time,” said the effort’s campaign manager, Carrie Giddens. The group is not union sponsored and does not have ties to either Northrop or Boeing, Giddens said in an e-mail exchange. However, “we have sought out funding from both companies, their suppliers and unions who would be impacted by building them both.” The requests went out in the past two weeks. On Monday, Giddens called Northrop’s decision to pull out of the bidding process “bad news for American workers, our men and women in uniform, and for the taxpayer.” With only one company seeking a contract, 50,000 jobs that would have been created won’t be, Giddens said in the statement. “Without an ongoing competition there is no way to control costs, to the detriment of our military and taxpayer.”

Northrop Grumman Delivers 500th Directional Infrared Countermeasures System

March 16, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News 
Northrop Grumman Delivers 500th Directional Infrared Countermeasures System
March 16, 2010

ROLLING MEADOWS, Ill. –– Northrop Grumman Corporation (NYSE:NOC) has announced the delivery of the 500th Directional Infrared Countermeasures (DIRCM) aircraft self-protection system to the U.S. Government.

Representatives of the U.S. Navy and Air Force were on hand to commemorate the event, which took place at the company's facility in Rolling Meadows, Ill.

"Your IRCM system is a high priority inside the U.S. Marine Corps because it protects the pilots out flying important missions every day," said Dan Johnson, Integrated Product Team lead for the Department of the Navy's DIRCM Systems. "It allows us to go where we need to go, whenever we need to be there."

"Since the program's inception, our team members have been focused and dedicated to producing high-quality self-protection systems to protect our nation's warfighters," said Carl Smith, vice president of Infrared Countermeasures Programs at Northrop Grumman's Land & Self Protection Systems Division. "The work we do here provides the most robust, battle-proven capability to protect the warfighter on the battlefield today."

The only such aircraft protection system currently in full production, Northrop Grumman's DIRCM system is now installed or scheduled for installation on several hundred military aircraft to protect approximately 50 different types of large fixed-wing transports and rotary-wing platforms from infrared missile attacks. The system functions by automatically detecting a missile launch, determining if it is a threat and activating a high-intensity laser-based countermeasure system to track and defeat the missile.

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DOD CONTRACTS for March 15, 2010

DOD CONTRACTS for March 15, 2010
March 15, 2010

NAVY

Navistar Defense, LLC, Warrenville, Ill., is being awarded a $178,262,162 modification to delivery order #0013 under previously awarded firm-fixed priced contract (M67854-07-D-5032) for the procurement of 1,222 independent suspension system kits and aluminum catcher plates for the Mine Resistant Ambush Protected vehicles. Work will be performed in West Point, Miss., and the period of performance is expected to be completed by the end of March 2011. Contract funds will not expire by the end of the current fiscal year. The Marine Corps Systems Command, Quantico, Va., is the contracting activity.

Northrop Grumman Corp., Integrated Systems, Bethpage, N.Y., is being awarded a $94,629,000 not-to-exceed advance acquisition contract for long lead materials and support associated with the manufacture and delivery of four low rate initial production Lot 3 E-2D Advanced Hawkeye aircraft. Work will be performed in Syracuse, N.Y. (32.6 percent); various locations within the United States (23.7 percent); Bethpage, N.Y. (15.5 percent); Dallas, Texas (12.4 percent); Menlo Park, Calif. (9.8 percent); and Woodland Hills, Calif. (6 percent), and is expected to be completed in May 2011. Contract funds will not expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-10-C-0044).

L-3 Communications Corp., Salt Lake City, Utah, is being awarded a $37,490,848 modification to a previously awarded fixed-price-incentive contract (N00019-09-C-0059) to exercise an option for the manufacture, test, and delivery of 11 AN/SRQ-4(Ku) radio terminal sets for ship small surface combatants and 51 AN/ARQ-59 RTSs for the MH-60R aircraft, including technical data. These upgraded Ku-band systems will extend existing Hawklink connectivity from small surface combatants to the aircraft carrier and increase data rates between MH-60R to surface combatants. Work will be performed in Salt Lake City, Utah, and is expected to be completed in March 2013. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Raytheon Technical Services Co., LLC, Indianapolis, Ind., is being awarded an $18,853,530 firm-fixed-price modification to a previously issued basic order agreement (N00019-05-G-0008) to exercise an option for the procurement of 36 LAU-115D/A launchers and 82 LAU-116B/A launchers for the F/A-18 aircraft. Work will be performed in Indianapolis, Ind., and is expected to be completed in September 2012. Contract funds will not expire at the end of the current fiscal year. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity.

Maersk Line, Ltd, Norfolk, Va., is being awarded an $8,630,000 firm-fixed-price contract for a nine-month time charter of tanker MT Samho Moonstone, currently a foreign-flag vessel, which will be re-named and U.S.-flagged upon delivery to the government. The ship's primary mission is to move petroleum for the Department of Defense between ports in the Far East. This contract includes one 30-day option which, if exercised, would bring the cumulative value to $9,500,000. Work is expected to commence May 2010 and is expected to be completed within 270 calendar days or, if all options are exercised, within 300 calendar days. The contract is expected to be funded in fiscal year 2010 and funds will not expire at the end of the fiscal year. This contract was competitively procured, with 11 offers received. Military Sealift Command, Washington, D.C., is the contracting authority (N00033-10-C-5410).

Insitu, Inc., Bingen, Wash., is being awarded an $8,576,814 firm-fixed-price contract for the procurement of technical services in support of the ScanEagle unmanned aerial system to support intelligence, surveillance, and reconnaissance services. In addition, this contract provides for six critical spare kits and nine SkyHook recovery system modifications. Work will be performed in Bingen, Wash., and is expected to be completed in December 2010. Contract funds in the amount of $8,433,786 will expire at the end of the current fiscal year. This contract was not competitively procured pursuant to FAR 6.302-2. The Naval Air Systems Command, Patuxent River, Md., is the contracting activity (N00019-10-C-0045).

Raytheon Co., Integrated Defense Systems, San Diego, is being awarded a $7,500,000 modification to previously awarded contract (N00024-08-C-5122) for the exercise of FY 10 options for performing as the platform system engineering agent for the Ship Self Defense System (SSDS). In the course of this effort, Raytheon will be responsible for the integration of complex war-fighting improvement - including components associated with the dual-band radar and Rolling Airframe Missile Block 2 - into the modular SSDS. SSDS is a combat system that intends to integrate and coordinate all of the existing sensors and weapons systems aboard a ship. Raytheon will integrate, test, and provide certification support for the government-furnished equipment/information required for the CVN/amphibious ship combat system. Work will be performed in San Diego (90 percent); Tewksbury, Mass. (2.5 percent); Portsmouth, R.I. (2.5 percent); St. Petersburg, Fla. (2.5 percent); and Tucson, Ariz. (2.5 percent). Work is expected to be completed by September 2010. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

AIR FORCE

Kaman Precision Products, Inc., Orlando, Fla., was awarded a $46,253,422.83 contract modification which will provide a quantity of 12,994 joint programmable fuze systems. At this time, entire amount has been obligated. 679 ARSS, Eglin Air Force Base, Fla., is the contracting activity (F08626-98-C-0006, P00130).

Raytheon Co., Tucson, Ariz., was awarded a $19,505,458 contract which provides an Advanced Medium Range Air-to-Air-Missile system improvement program. At this time, the $2,770,000 has been obligated. 696 ARSS, Eglin Air Force Base, Fla., is the contracting activity (FA8675-10-C-0105).

Booz Allen Hamilton, Herndon, Va., was awarded a $20,355,914 contract which will provide secure collaborative technologies and cyber security to Air Mobility Command. At this time, $455,000 has been obligated. 55 Contracting Squadron, Offutt Air Force Base, Neb., is the contracting activity (SP0700-98-D-4002).

Rockwell Collins, Inc., Cedar Rapids, Iowa, was awarded an $11,111,767 contract modification which will provide for systems development, integration, and verification phase of the P5 range instrumentation waveform. This waveform is in support of the F-22 and F-35 aircraft. At this time, $5,000,000 has been obligated. 689 ARSS, Eglin Air Force Base, Fla., is the contracting activity (FA8678-05-C-0141).

ARMY

Global Strategies Group North America, Inc., Frederick, Md., was awarded on March 10, 2010, an $18,745,406 firm-fixed-price contract for 103 containerized kitchens and authorize stockage list spares. Work is to be performed in Fredrick, Md., with an estimated completion date of Oct. 31, 2012. Bids were solicited on the World Wide Web with six bids received. U.S. Army Research, Development & Engineering Command Contracting Center, Natick Contracting Division, Natick, Mass., is the contracting activity (W911QY-05-D-0004).

Bethel Services, Inc., Bethel, Ark., was awarded on March 10, 2010, an $18,119,555 firm-fixed-price contract for 19 cold weather kits. Work is to be performed in Bethel, Ark., with an estimated completion date of April 29, 2011. One bid was solicited with one bid received. U.S. Army Research, Development & Engineering Command Contracting Center, Natick Contracting Divison, Natick, Mass., is the contracting activity (W911QY-05-C-0047).

Scott Reliance, JV, Chicago, Ill., was awarded on March 10, 2010, a $13,668,906 firm-fixed-price contract for the construction of an Army Reserve Center. Work is to be performed in Joliet, Ill., with an estimated completion date of Feb. 3, 2012. Bids were posted on the World Wide Web with eleven bids received. U.S. Corps of Engineers, Louisville District, Louisville, Ky., is the contracting activity (W912QR-10-C-0013).

Honeywell, Minneapolis, Minn., was awarded on March 10, 2010, a $7,342,153 cost-plus-fixed-fee contract for the Defense Advanced Research Project Agency, funding Honeywell to design, develop, and deliver a demonstration of a gyroscope with a goal capability of absolute reference navigation in a compact, four diameter optically integrated gyro-head. Work is to be performed in Minneapolis, Minn. (47 percent); Somerset, N.J. (19 percent); Pasadena, Calif. (17 percent); Glendale, Ariz. (16 percent); and King of Prussia, Pa. (1 percent), with an estimated completion date of May 7, 2010. Defense Advanced Research Projects Agency, Arlington, Va., is the contracting activity (HR0011-09-C-0019).

DEFENSE LOGISTICS AGENCY

MOOG, Inc., East Aurora, N.Y., is being awarded a maximum $6,232,476 firm-fixed-price contract for V22 aircraft parts. There are no other locations of performance. Using service is Air Force. There were originally two proposals solicited with two responses. Contract funds will not expire at the end of the current fiscal year. The date of performance completion is March 2012. The Defense Logistics Agency, Philadelphia (DSCR-ZC), Philadelphia, Pa., is the contracting activity (SPM4A1-06-G-0002-THA7).

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Now Reports That EADS May Bid After All

There is a rumor that the Pentagon may delay the deadline for submission of a proposal for the KC-X to accommodate either a solo bid or another partnership. This contradicts what was reported yesterday that EADS-NA CEO Sean O’Keefe said the company wouldn’t bid without Northrop Grumman (NOC). It will be seriously difficult for the company to bid by itself. It would need to find another U.S. company to work with.

This might be second thoughts by DoD as they realize how difficult doing a single bid contract award will be. This is not a sole source contract but right now it would only receive one qualified offer.

Northrop Grumman Holds 3rd Annual International CEESIM Users’ Conference in the United Kingdom

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News 
Northrop Grumman Holds 3rd Annual International CEESIM Users’ Conference in the United Kingdom
July 6, 2009

LONDON –– Northrop Grumman Corporation (NYSE: NOC) held its third annual conference for users of its Combat Electromagnetic Environment Simulator (CEESIM) systems for the testing and evaluation of airborne, naval and land electronic warfare systems. The conference has been established as a forum for constructive dialogue with user groups aimed at keeping them updated about system developments and identifying potential opportunities for improving system performance and customer service.

More than 40 military and civilian personnel from the UK, German and Italian user community were in attendance. A team of specialists in all aspects of CEESIM engineering and support from Northrop Grumman Amherst Systems also joined the conference. The conference was held in Peterborough in early June 2009.

“Aircraft defensive aid systems are a vital part of the modern battlefield environment and being able to test these electronic warfare systems in accurately simulated combat conditions is critical to mission performance,” said John Stanfill, president of Northrop Grumman Amherst Systems. “This conference provides an opportunity for us to meet as an international user community with the common goal of ensuring we have the best technology available to help protect the warfighter. This is an important opportunity for us to hear directly from frontline users about their operational experience and to learn where system improvements could be made.”

The Northrop Grumman CEESIM system is an industry-leading, advanced technology simulator, which generates complex dynamic electromagnetic environments to simulate true-to-war conditions, enabling military specialists to test and evaluate the performance of advanced electronic warfare systems such as radar warning receivers and electronic countermeasures and signals intelligence systems.

The principal UK users of the CEESIM system are the Air Warfare Centre at RAF Waddington, BAE Systems and Selex Sensors and Airborne Systems. International users in attendance also included EADS Deutschland GmbH, Alenia Aeronautica S.p.A. and Elettronica S.p.A.

Northrop Grumman’s CEESIM is currently used to support a variety of international aircraft including Typhoon, Tornado, Nimrod, Global Hawk, MRA-4, Harrier, AWACS and Apache. The company was selected last year to supply CEESIM systems for the A400M.

In addition to CEESIM, attendees were briefed on the Signal Measurement System, the IR/EO based Realtime IR/EO Scene Simulator and the CEESIM-based Joint Threat Emitter (JTE), a ground-based, electronic warfare system selected for use by the U.S. Air Force for use on all their electronic warfare training ranges. JTE is able to use any threat data developed on CEESIM systems. Along with product briefings, product demonstrations were also given at a special half day session.

Northrop Grumman Amherst Systems produces deployable radio frequency (RF) and infrared (IR) frequency simulators for use on test and training ranges at military installations worldwide. Its RF and IR simulators test the world’s most advanced electronic warfare warning systems, infrared/ultraviolet missile approach sensors and radar-warning receivers and jamming systems. These simulators are in use internationally, not only in the UK, Germany, and Italy, but also in Australia, Canada, Taiwan, Japan, Singapore, Korea, Saudi Arabia, UAE, Israel, Sweden, Finland, Norway, France and other NATO countries.

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Northrop Grumman Delivers Upgraded U.S. Navy Targets

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News 
Northrop Grumman Delivers Upgraded U.S. Navy Targets
July 7, 2009

SAN DIEGO -- Northrop Grumman Corporation (NYSE:NOC) has delivered to the U.S. Navy two retrofitted BQM-34 Firebee aerial targets, the first delivery in a series of BQM-34 targets retrofitted with current production avionics hardware and software capability from the BQM-74E product line.

The retrofit addresses avionics obsolescence issues faced by the oldest BQM-34 targets in the Navy inventory. An added benefit of integrating the modernized avionics includes fully autonomous waypoint navigation and improved extreme low altitude performance using the same mission planning system and vehicle avionics suite currently delivered with Navy BQM-74 targets. Under two contracts recently awarded by the Navy, Northrop Grumman will retrofit a total of 15 BQM-34 Firebees. The upgraded capability was initially demonstrated on August 17, 2005, with a successful first flight featuring the enhanced integrated avionics unit serving as the vehicle's autopilot. The two recent deliveries represent the first production version of the upgraded capability.

"The incorporation of the avionics upgrade into the BQM-34S will provide the Navy with an extremely economical means to fulfill their future target needs," said Hans Dall, manager of the Targets Program for Northrop Grumman's Aerospace Systems sector. "The avionics upgrade will assure that the exceptional capabilities provided by the BQM-34 will continue to support Navy needs for many more years."

The primary mission of Firebee is to simulate tactical threats posed by enemy aircraft and missiles for test and evaluation of defensive weapons systems. With a top speed of Mach 0.97, and an operational envelope covering altitudes as low as 10 feet above the sea surface and as high as 60,000 feet, the BQM-34 Firebee is a highly versatile and reliable high performance aerial target system. It is capable of performing seven-g turns while maintaining high airspeeds for realistic threat presentations.

With its high-thrust engine, advanced microprocessor flight control system, rugged airframe, and wide assortment of mission augmentation systems, the BQM-34 Firebee is a premier high performance aerial target system for today's military test and evaluation requirements. Its modular, robust design; large internal and external payload capacity; and abundant electrical power allows it to be readily modified to meet specialized target and tactical unmanned aerial vehicle missions. Such performance, and the ability to survive the hits and near misses of repeated missions, explains why the Firebee has been in constant use by American military services for more than five decades.

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Manufacturing of Northrop Grumman’s First Low-Rate Initial Production E-2D Advanced Hawkeye Begins

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News 
Manufacturing of Northrop Grumman's First Low-Rate Initial Production E-2D Advanced Hawkeye Begins
July 7, 2009

BETHPAGE, N.Y. -- Manufacturing of Northrop Grumman Corporation's (NYSE:NOC) first Low-Rate Initial Production (LRIP) E-2D Advanced Hawkeye, the sixth E-2D to be produced, has kicked off with the start of keel assembly at the company's East Coast Manufacturing and Flight Test Center in St. Augustine, Fla.

The work is being performed under a $432 million contract awarded June 15 by the U.S. Navy, which includes two LRIP Lot 1 aircraft and an Advanced Acquisition Contract for two LRIP Lot II aircraft, as well as associated engineering and testing.

"The start of Low-Rate Initial Production brings us one step closer to delivering this high-quality, reliable E-2D Advanced Hawkeye weapons system to the warfighter," said Jim Culmo, vice president of Airborne Early Warning and Battle Management Command and Control programs for Northrop Grumman Aerospace Systems sector. "In addition to this first LRIP Lot I aircraft, the first three pilot production E-2D aircraft are moving through the production process, ahead of schedule, and we are on track to deliver the first pilot production aircraft in 2010."

While the state-of-the-art E-2D's external appearance is similar to the E-2C, presently in operation with the U.S. Navy and four international customers, the systems and capabilities contained in the E-2D have been completely redesigned. At the heart of this redesign isthe new, more powerful AN/APY-9 radar, designed and built by a radar team led by Lockheed Martin. Representing a two-generational leap in radar technology, the AN/APY-9 can "see" smaller targets, and more of them, at a greater range than currently fielded radar systems.

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Northrop Grumman Plays Major Role in NASA’s Development of Alternate Astronaut Escape System

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News, space 
Northrop Grumman Plays Major Role in NASA's Development of Alternate Astronaut Escape System
July 8, 2009

Launch Abort System Successfully Tested At NASA Facility

EL SEGUNDO, Calif. - July 8, 2009 - Northrop Grumman Corporation (NYSE:NOC) played a major role in NASA's development of an alternate astronaut escape system that was successfully demonstrated today in a simulated launch abort test.

The unpiloted test was part of an assessment by the NASA Engineering and Safety Center (NESC) of a potential alternate launch abort system concept that could be used for future piloted spacecraft. The test occurred at NASA's Wallops Flight Facility, Wallops Island, Va.

NASA's Constellation Program is designing the Orion crew exploration vehicle, Ares launch vehicles and Altair Lunar Lander that will return humans to the moon to live and work. The Orion launch abort system offers a proven method of pulling the crew out of danger in the event of an emergency on the launch pad or during the climb to Earth orbit.

The alternate system is called the Max Launch Abort System (MLAS), which could deliver aerodynamic performance benefits, weight savings and be relatively simple in some spacecraft applications. The demonstration vehicle consists of a full-scale composite fairing, a full-scale crew module simulator and four solid rocket abort motors mounted in the boost skirt with motor mass simulators in the forward fairing.

"Our contribution to the MLAS demonstration is one example of a number of Northrop Grumman initiatives designed to help NASA mitigate risks related to key aspects of its Constellation Program," said Carl Meade, director of Constellation Systems for Northrop Grumman's Aerospace Systems sector.

Northrop Grumman developed and produced the composite fairing, fins, drag plates, and motor cage structure. Company personnel based in Wallops Island, Va., performed structures and mechanism assembly and supported the vehicle integration and flight test. Northrop Grumman's subcontractor, Ensign Bickford Aerospace and Defense, Simsbury, Conn., provided pyrotechnic separation system mechanisms.

"We contributed our expertise in structures and mechanisms including advanced composites design, analysis and manufacturing from across the company," said Tod Palm, Northrop Grumman's MLAS program manager. "It was especially gratifying to work alongside NASA in a fast-paced, seamless team environment. We look forward to future opportunities to work with the NASA team to address similarly challenging issues."

The prototype in the test was used to evaluate the means to safely propel a spacecraft and its crew from an errant rocket. It represents a departure from the tower launch abort system used during Apollo launches and retained for the NASA Constellation Program.

The MLAS test was primarily a demonstration of unpowered flight along a stable trajectory, vehicle reorientation and stabilization, followed by crew module simulator separation from the MLAS fairing, stabilization and parachute recovery of the crew module simulator.

Northrop Grumman is working with NASA on other elements of the Constellation Program, including the Altair Lunar Lander. The company brings extensive experience with lunar landers, solar system probes and space observatories, along with its expertise in designing and producing large complex systems from spacecraft to ships to high performance aircraft.

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Northrop Grumman’s Second E-2D Advanced Hawkeye Enters Next Phase of Flight Testing

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News 
Northrop Grumman's Second E-2D Advanced Hawkeye Enters Next Phase of Flight Testing
July 8, 2009

BETHPAGE, N.Y. -- Northrop Grumman Corporation's (NYSE:NOC) second E-2D Advanced Hawkeye, known as Delta Two, has transitioned to Naval Air Station Patuxent River, in Maryland, as part of the carrier suitability phase of testing, in preparation for Initial Operational Test and Evaluation. The first E-2D System Development and Design (SDD) aircraft, Delta One, transitioned to Pax River on May 30 and testing began shortly thereafter, led by the U.S. Navy's Air Test and Evaluation Squadron (VX) 20.

"The joint Advanced Hawkeye team has been putting the two SDD aircraft through a rigorous flight test program at Northrop Grumman's Manufacturing and Flight Test Center in St. Augustine, Fla.," said Jim Culmo, vice president of Airborne Early Warning and Battle Management Command and Control programs for Northrop Grumman Aerospace Systems. "This next phase of testing -- carrier suitability -- will be the first opportunity to get the E-2D out on the carrier. We're looking forward to the first Advanced Hawkeye carrier landing as it brings us that much closer to delivering this revolutionary weapons system to the warfighter."

To ensure that aircraft operating on carriers are compatible, all naval aviation assets undergo carrier suitability testing prior to joining the fleet. The bulk of the testing involves catapult and arrested landing structural tests as well as the interoperability between the aircraft and the carrier.

Designed and built for the U.S. Navy, the E-2D will utilize its newly developed AN/APY-9 Electronic Scan Array (ESA) radar, Cooperative Engagement Capability (CEC) system, Electronic Support Measures (ESM), and off-board sensors, in concert with surface combatants equipped with the Aegis combat system to detect, track, and defeat cruise missile threats at extended ranges. The E-2D Advanced Hawkeye will also provide unparalleled maritime domain awareness including airspace control for manned and unmanned assets, monitoring of surface movements, civil support, and command and control of tactical forces. The E-2D's new AN/APY-9 radar, designed and built by a radar team led by Lockheed Martin, represents a two-generational leap in radar technology. "The AN/APY-9 can see smaller targets and more of them at a greater range than currently fielded radar systems," Culmo added.

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Northrop Grumman Successfully Demonstrates Capabilities of LITENING Targeting System on U.S. Navy F/A-18E/F

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News 
Northrop Grumman Successfully Demonstrates Capabilities of LITENING Targeting System on U.S. Navy F/A-18E/F
March 10, 2010

ROLLING MEADOWS, Ill. –– Northrop Grumman Corporation (NYSE:NOC) today announced it successfully demonstrated its LITENING advanced targeting capabilities on the U.S. Navy's premier fighter/attack aircraft, the F/A-18E/F Super Hornet, marking the eighth U.S. combat aircraft to fly the advanced targeting system.

"During the 1.5 hour flight conducted at the Naval Air Warfare Center Weapons Division, China Lake, Calif., LITENING demonstrated its performance, flexibility and interoperability under operationally representative conditions," said Mike Lennon, vice president of Targeting and Surveillance Programs for Northrop Grumman's Targeting Systems Division. "With LITENING, Northrop Grumman offers advanced sensor technology, unique features, high reliability, proven worldwide support and a demonstrated ability to easily integrate emerging technologies, all at a very competitive price and delivery schedule. As a result of this successful integration of LITENING on the F/A-18E/F aircraft, potential international Super Hornet customers now have another advanced targeting system choice to maximize their targeting and surveillance capabilities."

Northrop Grumman's LITENING pod is a self-contained, multi-sensor system that enables operators with surveillance and situational awareness, and the ability to detect, acquire, identify, and auto-track targets for highly accurate delivery of both conventional and precision-guided weapons. Fully integrated to support both air-to-air and air-to-ground engagements, LITENING features advanced image processing for target identification; coordinate generation for GPS weapons; a 640 x 512 or 1,024 x 1,024 pixel forward-looking infrared sensor for effective day and night operations; a 1,024 x 1,024 pixel charge-coupled device television sensor; a dual waveband infrared laser designator and eye-safe laser range finder; a laser spot tracker; an infrared laser marker; and optional air-to-ground video data link and digital video recorder.

To date, more than 600 LITENING pods have been ordered by the U.S. Air Force, U.S. Navy, and seven allied nations. More than 500 systems have been fielded, the largest number of any advanced targeting and sensor system. LITENING is combat proven on the AV-8B, A-10A/C, B-52H, EA-6B, F-15E, F-16 (Blocks 15-52) and F/A-18 Hornet aircraft. Together, all variants of the LITENING pod have amassed more than 1,000,000 flight hours, with over 500,000 hours logged under deployed or combat conditions.

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Northrop Grumman Advanced Composite Mate Joint Passes Stringent Tests for NASA’s Composite Crew Module Demonstration Program

March 12, 2010 by Jeffrey Bradford · Comment
Filed under: NASA, Syndicated Industry News, space 
Northrop Grumman Advanced Composite Mate Joint Passes Stringent Tests for NASA's Composite Crew Module Demonstration Program
December 17, 2009

EL SEGUNDO, Calif. – An innovative method for joining composite structures implemented by Northrop Grumman Corporation (NYSE:NOC) has passed a series of intensive structural tests, paving the way for the use of composites in future spacecraft.

"This is a major step forward for the use of composites in future missions," said Gene Fraser, vice president of Advanced Programs and Technology for Northrop Grumman Aerospace Systems. "Our engineering and technology development efforts on this composite structure will enable future manned habitats for the Moon and beyond."

In collaboration with the NASA Engineering and Safety Center (NESC) Composite Crew Module team, Northrop Grumman developed a unique joint design that was used to mate two segments of NASA's Composite Crew Module (CMM) demonstrator. The joint design test results proved that the mating process retains compartment pressure and withstands external loads at twice the level normally experienced in flight. In addition, the new process provides mass and cost savings due to the elimination of mate joint fasteners, more efficient subsystems installation and no requirement for an autoclave during mate. The CCM is a high fidelity technology demonstration article that represents the inner pressurized shell for the Orion crew module.

"The splice region performed exactly as our analysis predicted," said Mike Kirsch, NASA CCM program manager. "We tracked the strain across the joint and verified that the non-autoclave cured composite was fully capable of handling the pressure and vehicle loads in the crew cabin."

Conducted at the NASA Langley Research Center in Hampton, Va., the Northrop Grumman team also installed an advanced fiberoptic strain-sensing system on the CCM, which monitored more than 3,500 channels of data in real time during the test to monitor the splice joint's performance. Additional tests measured the CCM's performance during ultimate loads for launch, on-orbit, and abort scenarios. NASA is now proceeding with post-impact load conditions to verify the robust residual strength characteristics of the CCM habitat structure. The test program will be complete next spring.

In recognition of the company's participation in the CCM splice fabrication effort, NESC, which is leading development of the CCM, presented Northrop Grumman's engineer Dawson Vincent with a Technical Excellence Award in October.

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Northrop Grumman Names Paul Russell to Lead Space Navigation Business Area

March 11, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News, space 
Northrop Grumman Names Paul Russell to Lead Space Navigation Business Area
March 11, 2010

WOODLAND HILLS, Calif. –– Northrop Grumman Corporation (NYSE:NOC) has appointed Paul K. Russell vice president of the newly-created Space business area within the company's Navigation Systems Division, effective immediately.

In his new position, Russell will be responsible for overall leadership of the division's inertial measurement unit programs and products for space applications, including Northrop Grumman's industry-leading Scalable Space Inertial Reference Unit (Scalable SIRU(TM)).

Russell joined Northrop Grumman in 2005 as director of the company's Azusa, Calif., site where he was responsible for oversight of all functional activities and facilities. He has an extensive executive management background in systems engineering, space technology and product management. Prior to joining Northrop Grumman, Russell was director of systems engineering for Space Systems/Loral, with responsibility for leading the systems engineering development of commercial satellite systems and supporting a variety of fixed and direct broadcast applications. Most recently, he served as vice president of engineering and manufacturing for the western region of Northrop Grumman's Electronic Systems sector.

Russell earned a bachelor's degree in physics from Willamette University and a master's degree in electrical engineering from Santa Clara University. He is a certified Six Sigma Black Belt.

Russell currently serves on the Santa Clara University Industrial Advisory Board.

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Northrop Grumman Awarded U.S. Army Europe Linguist Contract

March 11, 2010 by Jeffrey Bradford · Comment
Filed under: Syndicated Industry News 
Northrop Grumman Awarded U.S. Army Europe Linguist Contract
March 11, 2010

HERNDON, Va. -– U.S. Army Europe (USAREUR) has awarded Northrop Grumman Corporation (NYSE:NOC) a contract to provide interpreter and translator services.

The firm-fixed price USAREUR linguist contract has a value of $39 million over four years.

Under the terms of the contract, Northrop Grumman will provide comprehensive linguistic services to the U.S. Army to include translation from the target language into English and vice versa as well as the translations of documents, written material and media outputs. Work will primarily be performed in Kosovo, Romania and Bulgaria.

"Communication is vital to the success of any mission. We look
forward to continuing to work shoulder to shoulder with our valued U.S.
Army customer in Europe by providing unrivaled translation services to
sustain open lines of communication," said Isuf Hajrizi, Northrop
Grumman Technical Services program manager for the contract. "Program
performance is always priority one with Northrop Grumman, ensuring
world class service support to those who depend on us."


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Still Some Support For Northrop

Congressman Howard McKeon (R-CA) put out a statement today supporting Northrop. He said that he was “disappointed that Northrop Grumman has decided not to submit a proposal to build the Air Force’s next generation aerial refueling tanker.” He would like Northrop to reconsider its position.

Northrop is currently headquartered in California and has several thousand employees there. It is planning on moving to the Washington DC area in the near future.

The decision leaves Boeing as the sole announced bidder.

Northrop Grumman Expands Composites Manufacturing Training for Major Turkish F-35 Supplier — Press Release

Northrop Grumman Expands Composites Manufacturing Training for Major Turkish F-35 Supplier
Hands-on training helps Turkish Aerospace Industries prepare for its role as a second source supplier for jet’s center fuselage

EL SEGUNDO, Calif., March 9 /PRNewswire-FirstCall/ — Northrop Grumman Corporation (NYSE:NOC) is adding momentum to Turkish Aerospace Industries, Inc.’s (TAI) readiness to build complete center fuselages for the F-35 Lightning II aircraft by teaching its engineers how to build the complex composite structures used in the jet.

From Jan. 18 to Feb. 12, the company conducted rigorous classroom and hands-on training at its Advanced Composites Center in El Segundo for more than a dozen engineers and manufacturing specialists from TAI. The training was the third in a planned series of classes designed to teach TAI employees, ultimately, how to build a complete F-35 center fuselage.

“To date, TAI has made great progress in learning the tools and techniques of composites manufacturing,” said Mark Tucker, vice president and F-35 program manager for Northrop Grumman’s Aerospace Systems sector. “The recent training helped solidify their understanding of how to successfully produce and handle the actual composite inlet ducts used in the F-35.”

TAI is a second source supplier of F-35 center fuselages to Northrop Grumman, a principal member of the Lockheed Martin-led F-35 industry team. The Turkish company is slated to produce 400 center fuselages for the program beginning in the low rate initial production phases.

Guided by Northrop Grumman F-35 subject matter experts, the training engaged the TAI employees actively in the production of forward and aft inlet ducts for the jet. It included learning how to use the complex fiber placement mandrels that define the shape of the ducts; operating the machines that perform the actual fiber placement process; preparing the ducts for curing; performing post cure processing; and machining and conducting a final inspection of the completed parts.

According to Tucker, one of the parts that the TAI team helped produce – a forward inlet duct – will be integrated into one of the first major structural assemblies to be produced at TAI’s new F-35 assembly facilities in Ankara, Turkey later this year.

For Turker Dolek, a senior member of the TAI group, the benefits of the training extended far beyond simply refining and maturing their F-35 composite manufacturing skills.

“What we are also learning from Northrop Grumman is how to handle and manage manufacturing problems,” explains Dolek. “We’re very impressed that the company is encouraging all of its suppliers to bring their best effort to the program. All of the Northrop Grumman employees on the program are doing their best. We’re very honored to be part of this project.”

The TAI training is part of Northrop Grumman’s on-going commitment to help expand international participation in the F-35 program, build a reliable global supply chain, and help Lockheed Martin transition the program successfully from its current system development and demonstration phase into the LRIP and full-rate production phases.

Northrop Grumman is responsible for designing and producing the center fuselage for all three variants of the F-35. The company also designed and produces the aircraft’s radar and other key avionics including electro-optical and communications subsystems; develops mission systems and mission-planning software; leads the team’s development of pilot and maintenance training system courseware; and manages the team’s use, support and maintenance of low-observable technologies.

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

Source: Northrop Grumman Corporation

Press Release — Statement on US Refueling Tanker Program Announcement

Statement on US Refueling Tanker Program Announcement

WASHINGTON, March 9 /PRNewswire-USNewswire/ — The European Commission notes yesterday’s decision by Northrop Grumman / EADS not to submit a bid to the US Department of Defense for the US Air Force’s aerial refueling tanker contract.

“It is highly regrettable that a major potential supplier would feel unable to bid for a contract of this type. Open procurement markets guarantee better competition and better value for money for the taxpayer,” stated EU Trade Commissioner Karel De Gucht.

In February 2008, Northrop Grumman / EADS was selected and awarded the contract to provide aerial refueling tankers for the US Air Force in a fair and transparent competition. This was a positive sign for free and open competition across the Atlantic. This also seemed to indicate that successful bids are possible when European industry teams up with US industry and they are allowed to compete fairly. This award was subsequently cancelled at the end of 2008.

In December 2009, Northrop Grumman / EADS expressed serious concerns to the Department of Defense and the US Air Force on the proposed acquisition criteria for the contract.

The European Commission would be extremely concerned if it were to emerge that the terms of tender were such as to inhibit open competition for the contract.

The US defense trade balance with the EU has traditionally been significantly in the US’ favor. In 2008 the US exported $5 billion and imported only $2.2 billion worth of defense material, in line with a historic ratio of double exports to imports.

The Commission will be following further developments in this case very closely.

Source: Delegation of the European Union to the United States

Department of Defence Reacts To Northrop’s Decision Not To Bid on KC-X

Statement by Deputy Secretary William Lynn on Northrop Grumman Tanker Announcement

“We are disappointed by Northrop’s decision not to submit a bid for the U.S. Air Force tanker replacement program.

In the last tanker replacement (KC-X) competition, Northrop Grumman competed well on both price and non-price factors. We strongly believe that the current competition is structured fairly and that both companies could compete effectively.

Based on the inputs we received from both offerors to the Department’s draft Request for Proposal (RFP), we made changes to reduce the out-year risk to the potential manufacturers of KC-X. However, we did not change the war-fighters’ requirements to accommodate either offeror.

The Department strongly supports trans-Atlantic defense industrial ties and believes they benefit the American war-fighter and taxpayer.”

The statement was published here.

Statement From Northrop Grumman on U.S. Air Force Aerial Refueling Tanker Program — Press Release

Statement From Northrop Grumman on U.S. Air Force Aerial Refueling Tanker Program

WASHINGTON, March 8 /PRNewswire-FirstCall/ — The following is a statement from Wes Bush, Chief Executive Officer and President of Northrop Grumman Corporation (NYSE:NOC) , concerning the U.S. Air Force aerial refueling tanker program.

“After a comprehensive analysis of the final RFP, Northrop Grumman has determined that it will not submit a bid to the Department of Defense for the KC-X program. We reached this conclusion based on the structure of the source selection methodology defined in the RFP, which clearly favors Boeing’s smaller refueling tanker and does not provide adequate value recognition of the added capability of a larger tanker, precluding us from any competitive opportunity.

“Northrop Grumman fully respects the Department’s responsibility to determine the military requirements for the new tanker. In the previous competition, Northrop Grumman was selected by the Air Force as offering the most capable tanker for the warfighter at the best value for the taxpayer. However, the Northrop Grumman and EADS team is very disappointed that the revised source selection methodology now dramatically favors Boeing’s smaller refueling tanker. We agree that the fundamental military requirements for the new tanker have not changed since the last competition, but the Department’s new evaluation methodology now clearly favors the smaller tanker.

“We continue to believe that Northrop Grumman’s tanker represents the best value for the military and taxpayer – a belief supported by the selection of the A330 tanker design over the Boeing design in the last five consecutive tanker competitions around the globe. Regrettably, this means that the U.S. Air Force will be operating a less capable tanker than many of our Allies in this vital mission area.

“Our prior selection by the Air Force, our firm belief that we provide the best value offering, and the hard work and commitment of the many individuals and communities on our team over many years made this a difficult decision for our company. But we have a fiduciary responsibility to our shareholders to prudently invest our corporate resources, as do our more than 200 tanker team suppliers across the United States. Investing further resources to submit a bid would not be acting responsibly.

“We have decided that Northrop Grumman will not protest. While we feel we have substantial grounds to support a GAO or court ruling to overturn this revised source selection process, America’s service men and women have been forced to wait too long for new tankers. We feel a deep responsibility to their safety and to their ability to fulfill the missions our nation calls upon them to perform. Taking actions that would further delay the introduction of this urgent capability would also not be acting responsibly.

“We recognize that our decision likely creates a sole-source outcome for Boeing. We call on the Department to keep in mind the economic conclusions of the prior round of bidding as it takes actions to protect the taxpayer when defining the sole-source procurement contract. In the previous round, the Air Force, through a rigorous assessment of our proposal, determined that it would pay a unit flyaway cost of approximately $184 million per tanker for the first 68 tankers, including the non-recurring development costs. With the Department’s decision to procure a much smaller, less capable design, the taxpayer should certainly expect the bill to be much less.”

Northrop Grumman Corporation is a leading global security company whose 120,000 employees provide innovative systems, products, and solutions in aerospace, electronics, information systems, shipbuilding and technical services to government and commercial customers worldwide.

Source: Northrop Grumman Corporation

Reports That Northrop Won’t Bid

It is being reported that Northrop Grumman (NOC) will not submit a proposal in response to the new KC-X RFP released at the end of last month. Supposedly the announcement will be made after the markets close. Northrop had written to the DoD in December saying they most likely would not without changes in the RFP to make it fairer to the Airbus 330 based aircraft.

There is no word on whether EADS will find another partner or bid by themselves for the $35 billion contract.

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