Northrop to keep $750M Army ISR fleet logistics contract

Northrop Grumman will keep its potential nine-year, $750 million contract with the Army for logistics services to support aircraft used in intelligence, surveillance and reconnaissance missions.

The defense contractor is confirmed as the Army Fixed Wing Special Electronic Mission Aircraft Contractor Logistics Support Services contract winner after Leidos withdrew its protest to the Government Accountability against the award.

Leidos filed its protest Sept. 18 and ended its challenge on Nov. 14, according to the GAO docket. A third bidder in M7 Aerospace filed its own protest on Oct. 2 and withdrew it on Nov. 13. The Army received three bids for the contract previously held by L3 Technologies.

That clears the way for Northrop to start work in support of 75 aircraft that includes the RC-12X Guardrail, Enhanced Medium Altitude Reconnaissance Surveillance System and Airborne Reconnaissance Low variants.

The defense contractor will be responsible for program management, systems engineering and modification, supply chain management, and aircraft modifications and elective upgrades. Team members for the contract include King Aerospace and M1 Support Services, Northrop said in a release Wednesday.

For Northrop, this figures as a key win for its $4.8 billion technology services segment that is undergoing a transition in the type of business it pursues.

The business is working to “rebalance the portfolio so we are more focused on the higher end of” government services, CEO Wes Bush said in Northrop’s third quarter earnings call Oct. 25.