Northrop beats Lockheed for first CANES contract
By
Nick Wakeman
Round one goes to Northrop for lucrative contract to build new networks for Navy ships.
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.