Thank you, Randy. Good morning everybody. As Randy mentioned we’re here this morning to talk specifically about our efforts in Global Logistics. We have been a partner with the DOD in our domestic opportunities to provide them innovative solutions and modernization through our logistics programs. So what that would entail is, as we go through a normal maintenance process, we would offer these solutions that would allow us to improve the capability of the aircraft during the lifecycle management process, and therefore a better product coming out the end of a regular scheduled maintenance.
So if you think about how we’ve been doing that domestically, it logically makes sense that as we become a global company – and we are putting a lot of efforts forward to make sure that Northrop Grumman stays with the tide of global expansion for our systems that we are the original equipment manufacturer, systems like Triton, systems like Hunter, systems like large aircraft in KC-10 and 707-kinds of aircraft. We’re helping our partners internationally make those capabilities both upgradable and supportable for the future.
Domestically money isn’t as big as it used to be in Department of Defense. Well, international is following the exact same process. So as we look at trying to provide solutions for our customers internationally, we’ve really had to take on a different kind of a strategy to make sure we understand those marketplaces.
In doing that there’s a couple of ways to survive in a global industry. You can try to bring a capability one individual at a time. You can try to partner with a particular company or activity in a particular area of the country. Or you can expand through acquiring capabilities in the areas that you want to be in.
So today I’m very happy to make sure that you’re all aware that in February we closed on the sale of a company that was formerly part of the Quantas System. And so the Integrated Defense Services team that was formally Quantas Defense Services is now part of Northrop Grumman. With that capability a couple of things come naturally with that acquisition, and that is a portfolio of programs that they have done with the Royal Australian Air Force in the Tanker Program, in the C-130 Series programs, in the VIP or the Head of State aircraft. There are three of those. And so all these are very active and very well funded contracts.
So when buying a company we look for a couple of things. The value equation, which is very important to Northrop Grumman, means that the people of that company need to have the same values and ethics that we have. And in this case we found a perfect match for the kinds of engineering and innovative logistics solutions we provide. So that made that part of the job very easy.
We also like to look for companies that have portfolios that match the things that we’re doing already. And so the IDS team brings the kinds of things that we’re doing already for the United States Air Force, for the Department of the Navy, and the Department of the Army, and some pieces of the Marine Corps Ground Systems. So it was a perfect fit for Northrop Grumman team. And what it allowed us to do was put 320 Australians on the ground in countries so that we could support the kinds of programs we expect to have for the future.
So if you just think about where Australian’s headed, they’re buying F-18’s now. Northrop Grumman is a major partner on F-18. They’re buying E-18G’s, they’re giving delivery of them very quickly. And we are even a bigger partner of that piece of the puzzle. JSF is coming that way. And we are a partner on JSF. And Triton, that just got approved in the last couple of weeks through what they call First Pass, is also a program that we hope to be a very large partner with the people of IDS and the government of Australia.
So we’re off to a very, very good start on thinking of how we’re going to work the Pacific Rim area and provide a MRO capability in that region. So we are extremely excited about this opportunity. And this couldn’t have come at a better time in the sense of thinking about how we’re going to turn to the global marketplace and provide innovative and affordable solutions to customers whose budgets are also declining. So that’s real important.
We’ve established country executives in four major areas. And we’re looking to expand that to two additional. So we’ve got some very interesting opportunities to consider more acquisitions as we move to the future. But our strategy is to put people in country who are from that particular country, and do the work of those governments with that people of the country, rather than try to have a bunch of expatriates go in and do that kind of work. So we’re very happy that we’ve concluded on this buy. And very excited with the current work they have. And as you probably are aware in acquisitions there are a lot of things that this company can do, but they haven’t been doing because while you’re for sale it’s hard to go do new business because companies aren’t willing to invest. And now Northrop Grumman is here to really help them reach their fullest potential.
So those were the big things I wanted to talk about for today. And then the piece of infrastructure, which is critical to allowing us to reach back to Northrop Grumman here and domestically is the piece that JP is going to talk to you about. So as you think about acquiring new capability, we’ve got to have a seamless internet and capability of data dissemination.