Department of Energy Awards Northrop Grumman $2.5 Billion Nevada Test Site Management and Operations Contract


LOS ANGELES, March 29, 2006 (PRIMEZONE) -- The U.S. Department of Energy has awarded a Northrop Grumman-led (NYSE: NOC) joint venture a five-year, $2.5 billion contract for the management and operation of its Nevada Test Site (NTS).

Northrop Grumman is the managing partner of the joint venture, National Security Technologies, LLC (NSTec), which includes team members AECOM, CH2M Hill and NFS. NSTec brings together diverse and unique capabilities to provide the requisite leadership to the NTS contract. Phase-in work will begin April 1.

Under the terms of the contract, NSTec will manage and operate the Nevada Test Site facility and provide infrastructure support. Work will include management of the nuclear explosives safety team which supports the Department's efforts to prevent or slow the spread of nuclear weapons, while bolstering its counter-terrorism mission. The contract will also support hazardous chemical spill testing, emergency response training and conventional weapons testing.

"Northrop Grumman Technical Services is honored to be selected by the Department of Energy for this significant responsibility," said James Cameron, corporate vice president and president of Northrop Grumman Technical Services. "This contract demonstrates our commitment to this market segment and the rationale for the creation of Northrop Grumman Technical Services."

"Our team offers unique qualifications to further strengthen a security focus at the Nevada Test Site, a critical national asset," said Gregg Donley, vice president and general manager of Northrop Grumman Technical Services Systems Support Group. "As a result, our efforts will help to ensure safety, reliability and environmental responsibility for future nuclear research."

Support will be provided at the Department of Energy's Nevada Test Sites near Las Vegas and five other satellite and laboratory locations. Approximately 3,000 employees will work on the contract.

Northrop Grumman Technical Services was formed in 2006 to address the rapidly expanding logistics support, sustainment and technical services markets. The Technical Services sector leverages core capabilities across multiple programs and its approximate 15,000 employees to provide innovative solutions and world-class support to its customers.

Northrop Grumman Corporation is a global defense company headquartered in Los Angeles, Calif. Northrop Grumman provides technologically advanced, innovative products, services and solutions in systems integration, defense electronics, information technology, advanced aircraft, shipbuilding and space technology. With approximately 125,000 employees and operations in all 50 states and 25 countries, Northrop Grumman serves U.S. and international military, government and commercial customers.



            

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