'Northrop Grumman Corporation' () is an
aerospace and
defense conglomerate that is the result of the 1994 purchase of
Grumman by
Northrop. The company is the third largest
defense contractor for the
U.S. military[1], and the number-one builder of
naval vessels. Northrop Grumman employs over 122,000 people worldwide
[2]. Its 2006 annual revenue is reported at US$30 billion. Northrop Grumman ranks #73 on the 2007
Fortune 500 list of U.S. industrial companies.
[3]
Products and services
Some of the most expensive vehicles in the world, such as this
B-2 Spirit strategic bomber, are made by Northrop Grumman and purchased by the United States government.
Naval
Northrop Grumman's many products are made by separate business units.
Newport News Shipbuilding manufactures all U.S.
aircraft carriers, and is the only company capable of building
''Nimitz''-class
supercarriers. It also produces a large percentage of U.S.
nuclear submarines. A separate sector, Northrop Grumman Ship Systems, produces
amphibious assault ships and many other commercial and military craft, including
icebreakers,
tankers, and
cargo ships. In a partnership with
Science Applications International Corporation, Northrop Grumman provides naval engineering and architecture services as well as naval maintenance services
Aerospace
Separate sectors, such as Integrated Systems, produce aircraft for the U.S. and other nations. The
B-2 Spirit strategic bomber, the
E-8C Joint STARS surveillance aircraft, the
RQ-4 Global Hawk, and the
T-38 Talon supersonic trainer, are used by the
U.S. Air Force. The US Navy uses Northrop Grumman-built aerial vehicles such as the
BQM-74 Chukar,
C-2 Greyhound,
E-2 Hawkeye, and the
EA-6B Prowler. Northrop Grumman provides major components for aircraft such as
F/A-18 Hornet. Many aircraft, such as the
F-5,
T-38 Talon, and
E-2 Hawkeye are used by other nations.
The Space Technology sector builds a variety of military and
NASA satellites and mission payloads, as well as various
Strategic Defense Initiative ("Star Wars") defensive laser systems. Working with
Boeing, the sector provides the chemical
laser for the
Boeing YAL-1 Airborne Laser system.
Mission Systems sector is engaged in supporting the U.S. ballistic missile program; integrating various command, control and intelligence systems; and providing technical and management services to governmental and military customers.
Northrop Grumman intends to bid for the U.S. Air Force's next-generation strategic bomber project. Though it has not built a large manned aircraft since wrapping up B-2 Spirit production in the 1990s, the company has "been working hard to turn that perception around, with the skills and capabilities that back it up."
[4]
Northrop Grumman is partnering with
EADS in offering the
KC-30[ Northrop Grumman KC-30 marketing web site ] for the U.S. Air Force's
KC-X tanker competition.
[5] Should Northrop Grumman/EADS win the contract, it would be required to invest approximately
US$600 million in a new assembly plant in the United States, which is currently planned for
Mobile, Alabama.
Radar and sensors
Northrop Grumman Electronic Systems creates military sensors and related products, including
C4I radar systems for
air defense, Airspace Management radar systems such as
AMASS, and battlefield surveillance systems like the Airborne Reconnaissance Low (ARL). Tactical aircraft sensors produced by Northrop Grumman Electronic Systems include the AN/APG-68 radar and the AN/APG-80 advanced agile beam fire control radar for the
F-16 Fighting Falcon, the revolutionary AN/APG-77 Advanced Electronically Scanned Array (AESA) radar for the
F-22 Raptor, and the world's most advanced multi-function AESA radar, the AN/APG-81, and the AN/AAS-37 electro-optical Distributed Aperture System for the
F-35 Lightning II, and the highly reliable APQ-164 passive Electronically Scanned Array (AESA) radar for the
B-1 Lancer. Electronic Systems also produces and maintains the
AWACS aerial surveillance systems for the U.S., the
United Kingdom, NATO, Japan, and other customers. Northrop Grumman is the prime contractor for the development and integration of the Air Force's $2-billion
Multi-Platform Radar Technology Insertion Program.
Many other smaller products are made by Northrop Grumman, such as
night-vision goggles and secure communications equipment.
Affilated companies and partners
Remotec, a subsidiary, is the foremost manufacturer of
remote control vehicles for explosive ordnance disposal and hazardous material handling. A UK-based subsidiary, Park Air Systems, makes navigation, traffic control, and communications equipment for international customers.
They also have worked closely with
Antenna Associates, Inc., a leading manufacturer of
IFF(
Identification Friend or Foe)/
SSR(
Secondary Surveillance Radar) Antennas located in Massachusetts.
Other services
In addition to providing the products created by Northrop Grumman, the company also provides many military and non-military services, usually to governments. It is among the largest suppliers of
IT services to the U.S. federal government, for instance. And
Vinnell, a Northrop Grumman subsidiary within the Technical Services sector, provides training and communications services for the military.
Many smaller nations and individual states in the U.S. have contracted Northrop Grumman for various large-scale projects. In 2005, for instance, the company won a $2 billion contract with
Virginia to overhaul most of the state's IT operations.
[6] And later that year,
Great Britain paid for a $1.2 billion contract with the company to provide maintenance of many aspects of the country's defensive radar.
[7]
Northrop Grumman also performs various foreign functions in the
War on Drugs. The company sends planes to spray
herbicides on suspected
cocaine fields in
Colombia and
opium poppy fields in
Afghanistan.
[8][9]
History
Originally formed in California in 1939, Northrop Corporation was reincorporated in Delaware in 1985. In 1994, Northrop Aircraft merged with
Grumman Aerospace to create the company Northrop Grumman. Both companies were previously established in the airplane manufacturing industry, and Grumman was famous for building the
Apollo Lunar Module. The new company acquired
Westinghouse Electronic Systems in 1996, a major manufacturer of radar systems. Logicon, a defense computer contractor, was added in 1997. Previously, Logicon had acquired Geodynamics Corporation in March 1996 and Syscon Corporation in February 1995.
A merger between Northrop Grumman and competitor
Lockheed Martin was not approved by the U.S. government in 1998, slowing the consolidation of the defense industry. But in 1999, the company acquired
Teledyne Ryan, which developed surveillance systems and unmanned aircraft. It also acquired California Microwave, Inc., and Data Procurement Corporation, in the same year. Other entities acquired included Inter-National Research Institute Inc. (1998), Federal Data Corporation (2000), Navia Aviation As (2000), Comptek Research, Inc. (2000), and Sterling Software, Inc. (2000).
In 2001 the company acquired
Litton Industries, a shipbuilder and provider of defense electronics systems to the
U.S. Navy. During the acquisition process, a new Delaware holding company,
NNG, Inc., was formed. It merged with Northrop Grumman through a one-for-one common shares exchange in April 2001. Both Northrop Grumman and Litton became subsidiaries of the new holding company. The original Northrop Grumman Corporation then changed its name to Northrop Grumman Systems Corporation; the holding company, NNG, Inc., changed its name to Northrop Grumman Corporation.
Later that year,
Newport News Shipbuilding (one of only two producers of
nuclear submarines) was added to the company. And in 2002, Northrop Grumman acquired
TRW, with their sole interest in their space systems and laser systems manufacturing. The Aeronautical division was sold to
Goodrich, and the automotive divisions were spun-off and retained the TRW name.
There have been many other smaller acquisitions throughout this period.
[10] On July 20, 2007, Northrop Grumman became the sole owner of
Burt Rutan's Scaled Composites.
[11]
Northrop Grumman and
Boeing have also recently collaborated on a design concept for
NASA's upcoming
Orion spacecraft (previously the Crew Exploration Vehicle), but that contract went to rival
Lockheed Martin on
August 31,
2006. Northrop Grumman announced formation of a new business unit (sector), effective
January 1,
2006 called Technical Services.
Environmental record
Researchers at the
University of Massachusetts have identified Northrop Grumman as the 17th-largest corporate producer of
air pollution in the
United States; according to their study, Northrop Grumman facilities release more than 520,000 pounds of toxic chemicals per year into the air.
[12] The corporation has also been linked to 52
superfund toxic waste sites.
[13]
In
2003, the company was among 84 parties with which the
United States Environmental Protection Agency, the U.S.
Department of Justice, and the state of
New York reached an estimated US$ 15 million settlement for the rehabilitation of the Mattiace Petrochemical Company Superfund site in
Glen Cove,
Long Island[14]; in the same year, Northrop Grumman agreed to pay $33,214 after EPA inspectors found
hazardous waste violations at the Capistrano test site.
[15]
Political contributions and governmental ties
From 1990-2002, Northrop Grumman contributed $8.5 million to federal campaigns.
[16] According to
PAC summary data compiled by
Source Watch, the company gave 1,011,260 to federal candidates in 2005-2006 election cycle. The majority of the contributions--63%--went to Republicans.
[17] Former Northrop Grumman Electronics Systems chief
James Roche served for two years as Secretary of the Air Force for George Bush. As reported by the
Los Angeles Times, Roche would eventually be nominated to head the Army, but would be forced to withdraw his nomination among accusations of mismanaging a contract with
Boeing and of failing to properly handle the Air Force sexual assault scandals of 2003.
[18] According to
Corp Watch, "at least seven former officials, consultants, or shareholders of Northrop Grumman" have held posts "in the Bush administration...including Deputy Secretary of Defense
Paul Wolfowitz, Vice-Presidential Chief of Staff I.
Lewis Libby, Pentagon Comptroller Dov Zakheim, and Sean O’Keefe, director of NASA." Wolfowitz and Libby have both since left the government amid scandals.
Accolades
Northrop Grumman was named
Forbes's Company of the Year in 2002. Forbes's announcement credited the company with "master[ing] the art of innovation."
[19] Northrop Grumman no longer appears on their list of America's 400 Best Big Companies, however.
[20] Northrop Grumman is credited with sponsoring educational programs
[21] and donating thousands of dollars to various charities.
[22][23] Many members of the U.S. government have attended company events and spoken highly of the company and its contributions.
[24]
Scandals
Northrop Grumman has had to deal with multiple scandals during its history. The company was sued in 1999 for knowingly giving the Navy defective aircraft. This suit seeks $210 million in damages and is ongoing.
[25] Then in 2003, the company was sued for allegedly overcharging the U.S. government for space projects in the 1990s. Northrop Grumman paid $111.2 million to settle that suit out of court.
[26] Northrop Grumman also landed a $48 million contract to train the
Iraqi Army,
[27] a job that many have complained has been poorly managed.
Corporate governance
Kent Kresa was the
CEO of the company until he was required to retire in 2003 due to age restrictions. At this point,
Ronald Sugar, formerly the
chief operating officer, took over as CEO.
[28]
He also serves as the company
chairman.
Besides Sugar, current members of the
board of directors of Northrop Grumman are:
John Chain,
Lewis Coleman,
Vic Fazio,
Stephen Frank,
Phillip Frost,
Charles R. Larson,
Richard B. Myers,
Philip Odeen,
Aulana Peters,
Kevin Sharer,
John Brooks Slaughter.
Business units (sectors)
The company is split into several business units, each of which operates fairly independently. These business units have generally been created through acquisitions.
★
Northrop Grumman Electronic Systems was created by Northrop Grumman's acquisition of Westinghouse Electronic Systems Group in 1996. The Electronic Systems sector is a leading designer, developer, and manufacturer of a wide variety of advanced defense electronics and systems. The division has 120 locations worldwide, including 72 international offices, and approximately 24,000 employees. It accounted for 20% of company sales in 2004.
[29] Electronic Systems is headquartered in the Baltimore metropolitan area.
[30]
★ Information Technology is the sector charged with providing information systems and services to clients. It also handles training and simulation contracts.
★ Mission Systems deals with missile systems, command, control and intelligence, as well as technical and management services.
[31]
★ Integrated Systems support the aerospace and defense industries, providing the U.S. military with intelligence, surveillance, reconnaissance, and integrated strike warfare.
★
Northrop Grumman Newport News is the largest privately owned
shipyard in the
United States and the only one that can build
''Nimitz''-class
supercarriers. It is located in
Newport News, Virginia, and often participates in projects with the
Norfolk Naval Shipyard in
Portsmouth, Virginia.
★
Northrop Grumman Ship Systems is responsible for building small and medium shipping products. It consists of the former
Ingalls Shipbuilding and
Avondale Shipyard companies.
★ Space Technology deals primarily with satellites, and
SDI systems.
★ Technical Services is a new business unit formed
January 1,
2006. Northrop Grumman describes the sector as working in "the logistics support, sustainment, and technical services marketplace."
References
1. 100 Companies Receiving The Largest Dollar Volume Of Prime Contract Awards - Fiscal Year 2006
2. Northrop Grumman - Frequently Asked Questions
3. Fortune 500 2007
4. "Northrop Grumman Hopes for Big Role in DoD Bomber Plan." Christie, R. ''The Wall Street Journal''. July 10, 2006.
5. "Air Force Posts KC-X Request for Proposals", USAF news release, 2007-01-30
6. Virginia Taps Northrop Grumman for Billion IT Overhaul Paul McDougall
7. Britain Issues .2B E-3D AWACS Support Contract
8. Protecting people or profit? Max Jourdan
9. The "Invisible" U.S. War in Colombia Jacob Quintanilla
10.
Global Security: Mergers
11. http://www.space.com/news/070720_scaled_bought.html
12. Political Economy Research Institute
13. Center for Public Integrity analysis of EPA documents
14. Environmental Protection Agency
15. Environmental Protection Agency
16. http://www.corpwatch.org/article.php?list=type&type=11
17. http://www.opensecrets.org/pacs/lookup2.asp?strID=C00088591&cycle=2006
18. http://www.corpwatch.org/article.php?id=7832
19. Forbes Names Northrop Grumman Company of the Year
20. America's Best Big Companies
21. Northrop Grumman (March 20, 2006). ''Northrop Grumman Becomes Co-pilot for NASA's Great Moonbuggy Race''. Press release.
22. Northrop Grumman (March 31, 2006). ''Northrop Grumman Makes ,000 Donation to Boys and Girls Club of Annapolis and Anne Arundel County''. Press release.
23. Northrop Grumman Employees Charity Organization
24. Northrop Grumman (August 1, 2005). ''Photo Release -- Sen. John McCain Thanks Northrop Grumman Shipbuilders at Commissioning of Aegis Destroyer Halsey (DDG 97)''. Press release.
25. Northrop Grumman
26. Northrop Settles Billing Case: Shipbuilding Unit Allegedly Overbilled U.S. by Million Renae Merle
27. Million To Train Iraqi Army
28. We See You, Saddam Seth Lubove
29. Northrop Grumman Corporation (2005) ''2004 Annual Report''
30. http://www.es.northropgrumman.com/index.html
31. http://www.ms.northropgrumman.com/home/main.html
External links
★
Northrop Grumman web site
★
Northrop Grumman product list
★
A summary of the company from Oligopoly Watch
★
Interview with Northrop Grumman CEO, Feb. 12, 2006.
★
Patents owned by Northrop Grumman
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