Northrop’s local moves aim to cut prices for AF

Defense giant consolidating its Dayton-area operations.

BEAVERCREEK — By consolidating most of its Dayton operations in one building, defense giant Northrop Grumman Corp. hopes to make its prices more attractive to Wright-Patterson Air Force Base in competition for contracts.

Air Force officials have said they will put greater emphasis on prices that contracting companies charge for services, as the Defense Department tries to reduce and reallocate spending to focus on priority weapons and aircraft programs.

Northrop Grumman anticipates that the operational savings from having operations under one roof in a more energy-efficient building can be passed on to the Air Force under existing and future contracts, said Jay Jabour, corporate lead executive for the company’s local operations.

“It allows us to be more cost-efficient for future contracts and existing contracts,” Jabour said. “It really shows our commitment to the community.”

Northrop expects, in August, to start moving into a $17.5 million, 99,000-square-foot building that Mills Development is developing along Col. Glenn Highway in Beavercreek. It will allow Northrop to consolidate businesses it has acquired over the years, including operations now located in Kettering and Fairborn.

Wright-Patterson is the primary customer for Northrop’s local operations, which include all four of the company’s business segments: aerospace systems, electronic systems, information systems and technical services.

Northrop’s business with Wright-Patterson includes supporting the B-2 bomber and Global Hawk unmanned aircraft programs.

About 400 of Northrop’s approximately 440 Dayton-area employees will be in the new building, with the move-in to be completed by the end of 2012.

There will be some room in the building for expansion if Northrop lands new business with the base, Jabour said.

Mills Development will own the building and lease it to Northrop. Jabour declined to say how much he expects to save in operations, or say what Northrop’s investment in the project is.

It will be Northrop’s second operation in Beavercreek. The company employs about 80 people at 4020 Executive Drive.

The new location will put Northrop even closer to the base, which was a key requirement, Jabour said.

It helps both the government and contractors to be near each other, so that engineers, researchers and other professionals can more easily collaborate in contract work, said Joe Zeis, a retired Air Force officer who is chief strategist and a vice president of the Dayton Development Coalition.

“It provides for a highly integrated approach to answering government’s research and acquisition needs,” Zeis said.

Contact this reporter at (937) 225-2242 or jnolan@Dayton DailyNews.com.

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