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Strategies & Market Trends : Roger's 1997 Short Picks
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To: Roger A. Babb who wrote (4741)8/14/1997 9:40:00 PM
From: choban   of 9285
 
Roger, This $420M AND Northrop contract just doesn't make sense. First the miltary rarely awards contracts beyond 5 years for commodity items like these headsets, because technology is always getting cheaper and better. In fact the military rarely buys the same item like this for even two years. I wouldn't be surprised if we find out that the $420M turns out to be the size of the Northrop contract to build a ship or an airplane and the Andrea piece is much smaller. Has anyone seen specifics on this supposed contract?

Just to put things into perspective, if you were a military General or Admiral, you could buy the following miltary hardware for the same cost as this supposed AND contract for headsets.

1)twenty F-18 fighters
2)One Perry Class Frigate
3)The Navy's newest ship - Arsenal ship

The other thing that amazes me is that very few Military Program Offices even have a budget of this size without having a jet, a ship, a tank, or a weapon system to justify the budget. I am anxious to read any news that specifies the Division of Northrop and their specific miltary customer.

Another thing that sounds fishy about this AND contract is that the military almost ALWAYS awards a contract of this size COMPETITIVELY, which would imply that the winner is kept as a closely guarded secret until the day the contract award is announced. I'm not short yet, but I will look for an entry point as soon as I can verify the details behind this contract support my initial assumptions.
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