Northrop beats Lockheed for first CANES contract

The Navy has tapped Northrop Grumman Corp. for the first contract under its Consolidated Afloat Networks Enterprise Services contract worth nearly $640 million.

Northrop and Lockheed Martin Corp. were locked in a battle for the CANES contract, which will outfit 54 ships with new computer networks. The work will begin on guided-missile destroyers and multipurpose amphibious assault ships, the Defense Department said.

The first task is for $36.6 million and will be completed by September. Options could continue the work through September 2013 and bring the total value to $637.8 million. The Space and Naval Warfare Systems Command in San Diego oversees the contract.

Eventually, the Navy wants to outfit 286 ships and 60-plus submarines with new on-board computer networks. Other competitions will be held for the work on those vessels.

Northrop Grumman is ranked No. 2 on Washington Technology’s 2011 Top 100 list of the largest federal contractors.

About the Author

Nick Wakeman is the editor-in-chief of Washington Technology. Follow him on Twitter: @nick_wakeman.

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