Northrop wins $3.8 billion defense contract

Los Angeles-based Northrop Grumman has won a major $3.8 billion contract to maintain and service the US Air ForceÔÇÖs fleet of KC-10 aerial refueling tankers. Northrop will take over from Seattle-based rival Boeing, who currently holds the contract for servicing the aircraft, in January. Boeing has been providing a 24-hour service, seven days a week on the fleet since 1998.  The contract was originally due to be awarded last year but was delayed due to insufficient cost and pricing data provided by the bidders. The new contract will run for 10 years and is expected to bring up to 300 jobs to the Lake Charles, Louisiana area, where NorthropÔÇÖs facility for servicing is based.  Under the terms of the contract, Northrop will provide depot-level maintenance and modifications, as well as supply chain management and additional related tasks. The Air ForceÔÇÖs refueling fleet includes nearly 60 of the KC-10 aircraft, which were purchased back in the 1970s.  Along with its partner European Aeronautic Defense and Space Co (EADS), the maker of Airbus, Northrop is also currently competing against Boeing for the contract to build 179 of the next generation of KC-135 tankers, which could be worth up to $50 billion. Some of the KC-135 fleet are 50 years old. The KC-135 contract was awarded last year to Northrop and EADS but Boeing appealed and the award was overturned. The fourth largest defense contractor in the world, Northrop employs a global workforce of just under 124,000. Boeing has said it is disappointed by the PentagonÔÇÖs decision but that it will review it before taking further action. The company has the option to appeal. * ┬á┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á┬á *