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Northrop to Produce Counter-IED Systems for Navy Under Potential $505M Contract

Northrop Grumman (NYSE: NOC) has won a potential five-year, $505.3 million contract from the U.S. Navy to start full-rate production of systems designed to protect warfighters, vehicles and structures from radio-controlled improvised explosive threats.

The Defense Department said Monday Northrop will manufacture the systems under the Joint Counter Radio-Controlled Improvised Explosive Device Electronic Warfare Increment One program.

JCREW will have a dismounted variant that can be placed in backpacks; a mounted version for use on tactical vehicles; and a fixed variant designed to secure permanent facilities, according to the Navy.

The Navy received two proposals for the contract and obligated $57.8 million in fiscal years 2015 and 2016 “other” procurement funds at the time of award.

Ninety-seven percent of work will take place in San Diego, California, and the remaining three percent in Sierra Vista, Arizona.

The Pentagon expects Northrop to finish contract work in August 2022.

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