SAN DIEGO, Calif., Feb. 13, 2012. The U.S. Navy has awarded Northrop Grumman Corporation (NYSE:NOC) $37 million for the Consolidated Afloat Networks and Enterprise Services (CANES) production and limited deployment phase. The contract includes options that would raise the cumulative value of the contract to $638 million, if all options are exercised. CANES will consolidate and modernize shipboard network systems.

Consolidation through CANES will eliminate many legacy, standalone networks and provide a common computing environment infrastructure for dozens of command, control, intelligence and logistics applications.

Under the modification to the CANES contract awarded in March 2010, Northrop Grumman will produce the initial CANES shipsets for installation. CANES is planned to deploy on a fleet destroyer in late fiscal year 2012.

Northrop Grumman uses the Modular Open Systems Approach-CompetitiveTM process for its CANES solution.