L3Harris Technologies Inc (LHX, Financial) has awarded a contract valued at up to $12.1 million to CPI Aerostructures, Inc. (CPI Aero) for the delivery of airborne pod structures. Announced on December 11, 2024, this contract supports the development of operational prototype pods for the U.S. Naval Air Systems Command, aimed at replacing the aging AN/ALQ-99 Tactical Jamming System. The Next Generation Jammer – Low Band (NGJ-LB) pods will be integrated into the EA-18G Growler, with deliveries commencing in 2025 and continuing through 2027.
Positive Aspects
- The contract signifies a significant milestone for CPI Aero, enhancing its portfolio in the defense sector.
- L3Harris' NGJ-LB system offers advanced processing and increased jamming capabilities, promising improved maintenance and upgrade potential.
- The partnership supports the U.S. Navy's strategic goal of modernizing its electronic warfare systems.
Negative Aspects
- The project timeline extends to 2029 for early operational capability, indicating a long-term commitment with potential risks.
- There are inherent risks and uncertainties associated with forward-looking statements and defense contracts.
Financial Analyst Perspective
From a financial standpoint, this contract represents a strategic win for L3Harris Technologies Inc (LHX, Financial), potentially boosting its revenue streams and reinforcing its position in the defense sector. The collaboration with CPI Aero could lead to further opportunities in the aerospace market, enhancing L3Harris' competitive edge. However, investors should be mindful of the long-term nature of defense contracts and the associated risks, including potential delays and cost overruns.
Market Research Analyst Perspective
The partnership between L3Harris and CPI Aero highlights a growing trend in the defense industry towards modernization and technological advancement. The NGJ-LB system's modular, open-system architecture aligns with the industry's shift towards more adaptable and upgradeable solutions. This contract not only strengthens L3Harris' market position but also underscores the increasing demand for advanced electronic warfare systems, driven by evolving global security threats.
Frequently Asked Questions
What is the value of the contract awarded to CPI Aero?
The contract is valued at up to $12.1 million.
What is the purpose of the NGJ-LB pods?
The NGJ-LB pods are designed to replace the aging AN/ALQ-99 Tactical Jamming System and enhance the U.S. Navy's electronic warfare capabilities.
When will the deliveries of the NGJ-LB pods begin?
Deliveries are scheduled to start in 2025 and extend through 2027.
What aircraft will the NGJ-LB pods be integrated into?
The pods will be integrated into the EA-18G Growler aircraft.
When is the NGJ-LB system expected to reach early operational capability?
The system is scheduled to reach early operational capability in 2029.
Read the original press release here.
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