Northrop Partnership Wins $2.4 Billion Army Contract

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Northrop Grumman Corp. and British partner Cobham said Monday that their joint venture had been awarded a major contract to provide battlefield communications equipment to the U.S. Army.

The 10-year deal to supply what’s called the VIS-X system that allows communication between vehicles on the battlefield is worth up to $2.4 billion, the companies said.

The equipment will be used by soldiers in vehicles such as the Humvee and Abrams and Bradley tanks. Cobham, a defense electronics company, and Los Angeles-based Northrop have worked together for 15 years and already supply the U.S. military with the VIC-3 communication system through their Northrop Grumman Cobham Intercoms LLC.

The deal, which will begin in 2010, requires the joint venture to deliver up to 500 systems a month in the first year and 2,000 systems per month in subsequent years.

Northrop shares were up 67 cents, or 1.5 percent, to $46.63 in midday trading on the New York Stock Exchange.

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