Northrop may sell consulting unit for $2 billion

Northrop Grumman, the third-largest US defense company, is selling its unit that advises military and intelligence agencies, known as TASC.┬á  It is thought the division, which sells mission analysis services and advises government military agencies on weapons systems, could fetch up to $2 billion.  TASC also works with the intelligence community and commercial industry.┬á Interested parties in the unit are said to include private equity firm Carlyle Group and asset management firms Kohlberg Kravis Roberts & Co and Blackstone Group.┬á Northrop bought TASC in 2001 when it acquired Litton Industries for $5 billion.  Originally set up in the sixties by a group of MIT engineers, the division is headquartered in Herndon, Virginia, and now has nearly 5,000 employees. As defense programs have increased in complexity, the Government has been compelled to seek the services of consultants who are experts in evaluating and advising on high-tech weapons systems and satellites.┬á┬á However, it has emerged that there may be conflicts of interest at defense contractors that both advise on and sell equipment to the Government, as Northrop does. In May, President Obama brought in legislation that puts pressure on defense giants such as Northrop to draw a clearer line between their government consultancy work and their sales of weapons systems and hardware. TASC's main two rivals are Virginia-based Booz Allen Hamilton and San Diego-based Science Applications International.┬á A deal for TASC is expected to be agreed by the end of this month.┬á * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *