Northrop Gets $896M CBP Contract for P-3 Aircraft Maintenance, Logistics Support

Northrop Grumman (NYSE: NOC) has won a potential $896.1 million contract from the Customs and Border Protection (CBP) to provide logistical and maintenance support services for its fleet of P-3 Orion maritime surveillance aircraft. An award notice posted Friday says that CBP  has received three offers for the hybrid firm-fixed-price and cost-plus-incentive fee contract.

Support services under the contract will allow CBP’s Air and Marine Operations to keep its Lockheed Martin-built (NYSE: LMT) P-3 planes operational in support of contingency operations, investigation, domain awareness and interdiction efforts.

Northrop will perform work in Jacksonville, Fla., and Lake Charles, La., and will get initial funding worth $3.4 million. The contract has a four-month phase-in period, a one-year base term, nine 12-month option periods and an option for a six-month extension.

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