The U.S. Department of Defense announced a dozen contract awards Wednesday — worth $541.2 million in combined value. Britain’s BAE Systems took the top prize with a $150-million contract to produce HERCULES tank salvage vehicles for the Army. Perhaps the most interesting contract of the day, however — although not the largest — went to local U.S. defense contractor Northrop Grumman

Northrop Grumman won a $27.6 million option exercise on a preexisting cost-plus-fixed-fee contract to extend operational and maintenance support of the Navy’s Broad Area Maritime Surveillance (BAMS) – Demonstrator Unmanned Aircraft System through May 2014. Specifically, the aircraft being supported is Northrop’s own MQ-4C Triton unmanned aerial vehicle, which won a Navy competition for the BAMS contract in 2008, beating out bothBoeing and Lockheed Martin for the privilege.

As part of the BAMS program, the Triton is designed to provide real-time intelligence, surveillance, and reconnaissance (ISR) capabilities over “vast” areas of ocean and coastline — as in 12.6 million square miles in one glance. Based on Northrop’s successful Global Hawk design, the Triton is able to fly 24 hours at a stretch, and can provide a full 360 degrees of oversight of this area.

In total, the Navy plans to buy 68 Tritons, in a contract expected to be worth up to $1.2 billion to Northrop.

http://www.fool.com/investing/general/2013/08/21/northrop-grumman-wins-mq-4c-triton-uav-contract.aspx

source: suasnews.com