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Northrop Grumman Continues to Operate, Maintain Defense Travel System


RESTON, Va. - Oct. 3, 2007 - The U.S. Department of Defense's Business Transformation Agency recently selected Northrop Grumman Corporation (NYSE:NOC) to continue operating and maintaining the Defense Travel System (DTS). Northrop Grumman developed DTS to automate travel and travel management for military and civilian employees of the U.S. Department of Defense.

As the prime contractor, Northrop Grumman will provide operations and maintenance support as well as broad services including application software and system interfaces development, testing, configuration management and analysis.

The one-year, cost-plus, fixed-fee task order, which has two additional one-year option periods, is valued at $65.7 million, if all options are exercised. An added provision provides for optional labor-hour services to support pre-planned product improvements, technical refresh, and future transition requirements, if required.

"DTS is the first IT system of this size and complexity to be implemented to military and civilian employees enterprise-wide, across the DoD," said Maj. Gen. Carlos "Butch" Pair, the Business Transformation Agency's defense business systems acquisition executive. "This new contract enables DTS to successfully sustain these efforts at significant savings to the taxpayer and is an example of what business transformation can do for the Department of Defense."

"DTS has proven to be a truly effective transformation system with enduring value and benefits for Defense Department travelers," said Lisa Godfrey, DTS program manager for Northrop Grumman's Mission Systems sector. "We are honored to continue providing this important service to the military."

More than 5 million travel authorizations and 4 million approved travel vouchers have been processed using DTS, which has been operational at all major military installations since September 2006. On average, DTS processes more than 23,000 daily transactions.

The U.S. Air Force Headquarters 754th Electronic Systems Group awarded the task order under the Air Force Network-Centric Solutions (NETCENTS) contract on June 8. The initial period of performance for this contract began June 25.

The Northrop Grumman team includes Dovel Technologies, McLean, Va.; ServerVault Corp., Dulles, Va.; Multimax Inc., Herndon, Va. (acquired by Harris Corp. on June 15); and Arena Technical LLC, Bethesda, Md.

DTS is a Web-based, secure, end-to-end system that automates travel authorizations, reservations, voucher processing, payment and archiving. It enhances management oversight; reduces travel and travel management costs; and prevents fraud, waste and abuse.

Northrop Grumman Corporation is a $30 billion global defense and technology company whose 120,000 employees provide innovative systems, products, and solutions in information and services, electronics, aerospace and shipbuilding to government and commercial customers worldwide.

CONTACT:  Janis Lamar
          (703) 345-7046

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