Military
Northrop Grumman Wins Stealth Bomber Contract Worth Up to $9.9 Billion
Published:
The Department of Defense awarded 19 defense contracts in its Tuesday evening announcement of contract awards, with a total value of $10.46 billion, including one contract making up 95% of the total value.
Source: Allan Tooley/ThinkStock
This mega-contract, easily the most significant award of the day, went to defense contractor Northrop Grumman (NYSE: NOC), builder of the B-2 Spirit bomber, better known as the B-2 Stealth Bomber.
Valued at up to $9.9 billion, Northrop’s award took the form of an indefinite-delivery/indefinite-quantity Flexible Acquisition Sustainment Team (FAST) II contract to modernize and support the Air Force’s B-2 Stealth Bombers. According to data from the 2014 edition of Flightglobal Insight, the U.S. currently has 19 B-2 bombers in active service, all operating with the U.S. Air Force. Military aviation website Deagel.com puts the average purchase cost of each Stealth Bomber at $1.4 billion.
Under this contract, Northrop will make upgrades to the Stealth Bomber fleet, perform engineering work and software and hardware maintenance, and provide support equipment. These funds cover work to be performed by Northrop through May 2, 2019. After that, the Air Force has the option of ordering additional work for additional funds, and if this option is exercised, Northrop’s contract could continue in force through May 2, 2024.
ALSO READ: Nine Countries That Hate America the Most
Top dividend stocks for the next decade
Big news stories can change every day, but great dividends last much longer. And the smartest investors know how much that adds up to over the long run. That’s why top analysts put together a report on a group of high-yielding stocks that should be in any income investor’s portfolio. To see our free report on these stocks, just click here now.
ALERT: Take This Retirement Quiz Now (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.