No. 3: Northrop's crystal ball

A knack for anticipating and addressing market trends keeps company riding high

Northrop Grumman Corp.

Top 100 revenue: $7.9 billion

2007 revenue: $32 billion

2007 net earnings: $1.7 billion

2006 revenue: $30.1 billion

2006 net earnings: $1.5 billion

Employees: 120,000

http://www.northropgrumman.com

Northrop Grumman Corp.'s Linda Mills has
taken the reins of the company's $4.5 billion
information technology unit in McLean, Va., at
a time when federal budgets are tightening and
a presidential transition looms.

She's leading the IT services component of
the largest and fastest-growing division of
Northrop Grumman, and the sector is wellpositioned
to benefit from the continued
demand for technology in homeland security,
intelligence, military and health care for federal,
state and local agencies.

The company's $12.6 billion Information and
Services division ? which includes IT, Mission
Systems and Technical Services ? enjoyed an 11
percent growth rate in the past year, Mills said.

With federal prime-contracting revenue of
$7.9 billion in 2007,
Northrop Grumman coasts
in at No. 3 on this year's Top
100 list.

Mills began her role as
corporate vice president and
president of Northrop
Grumman IT May 1, succeeding
James O'Neill, who
retired. She said serving a
broad array of clients is an
advantage.

"We are proud to serve a diverse customer set
that spans military, intelligence, civil federal
agencies and state/local government," Mills said.
"This diverse mix enables us to grow as
budget priorities shift," she added. "Tight budgets
are always a two-edged sword: The pressure
to do more with less drives demand for IT
because IT drives productivity. On the other
hand, it can slow new system starts."

In a headline-grabbing win, Northrop
Grumman and the parent company of
Airbus beat Boeing Co. earlier this year for
a $40 billion Air Force tanker contract.

In 2007, Northrop Grumman IT had
several major wins, including a $267 million
award for the Army's Defense
Knowledge Online Web portal and a
$220 million deal for data storage at
NASA. The company was one of 16 contractors
chosen to participate in a massive
Medicare and Medicaid governmentwide
acquisition contract. However, it has lost a
few contracts, notably the FBI's Next
Generation Identification project.

The IT unit is also active in the intelligence
community, state and local governments
in the United States, and the
United Kingdom.

Mills said the need
for greater efficiency
and homeland security
priorities continue
to drive the demand for
IT solutions, such as
information sharing and
security.

"Demand for IT across
the government continues
to be strong as agencies seek innovative ways to
more effectively perform their mission while at
the same time improving efficiency," Mills said.

Northrop Grumman's Information and
Services division has grown partly through
strategic acquisitions, said Bob Kipps, managing
director at KippsDeSanto and Co., an
investment banking firm.

"They have acquired very high-quality businesses
with high-level capabilities and effectively
integrated them," he said. "Northrop
Grumman is as well-positioned as anyone."

Mills said she views IT as playing a critical
role in government, no matter who wins the
presidential election.

The candidates face the same challenges: the
war in Iraq, economic issues in the United
States, the environment, immigration and
health care, among others, she said. "IT plays a
critical role in meeting these challenges irrespective
of policy," Mills said. "For example, in
health care, whether we go to a national system,
mandated health insurance or some other
approach, IT will be critical to reducing costs
and improving quality of care."

Reader Comments

Please post your comments here. Comments are moderated, so they may not appear immediately after submitting. We will not post comments that we consider abusive or off-topic.

Please type the letters/numbers you see above

What is your e-mail address?

My e-mail address is:

Do you have a password?

Forgot your password? Click here
close
SEARCH
 Top 100 Slideshow
contracts DB

Trending

  • Dive into our Contract Award database

    In an exclusive for WT Insider members, we are collecting all of the contract awards we cover into a database that you can sort by contractor, agency, value and other parameters. You can also download it into a spreadsheet. Read More

  • Is SBA MIA on contractor fraud? Nick Wakeman

    Editor Nick Wakeman explores the puzzle of why SBA has been so silent on the latest contractor fraud scandal when it has been so quick to act in other cases. Read More

Webcasts