(By Balaseshan) Northrop Grumman Corp. (NYSE: NOC) said it has received a basic ordering agreement for the Enhanced Army Global Logistics Enterprise (EAGLE) from the U.S. Army Sustainment Command (ASC).
EAGLE's ceiling value is $23.5 billion. Northrop Grumman was one of a number of defense companies that won agreements to compete under the vehicle.
EAGLE is an indefinite delivery, indefinite quantity (ID/IQ) contract vehicle the Army will use for maintenance, supply and transportation support functions required by the ASC.
EAGLE is a new contract vehicle that is expected to replace present ID/IQ vehicles, including Field and Installation Readiness Support Teams, for which Northrop Grumman is a prime contractor.
The Army will use EAGLE to assign sustainment services to include the maintenance and reset of equipment, supply chain management and vehicle sustainment and logistics operations.
"Winning a seat on EAGLE is an important enabler for our support to the U.S. Army war fighter. This selection further strengthens Northrop Grumman's position as a provider of innovative logistics and affordable service solutions to the Army," said Bill Carty, sector vice president and general manager, Northrop Grumman Technical Services Defense and Government Services division.
Northrop Grumman provides products, services, and integrated solutions in aerospace, electronics, information and services to its global customers. The company operated in four segments: Aerospace Systems, Electronic Systems, Information Systems and Technical Services.
NOC is trading down 0.85 percent at $69.60 on Tuesday. The stock has been trading between $52.69 and $71.25 for the past 52 weeks.