NORTHROP GRUMMAN

The third largest defense contractor for the U.S. military, (after Lockheed Martin and Boeing) Northrop Grumman received more than 90% of its 2005 income from the United States government. Calling the company ‘politically connected’ would be an understatement given the millions of its more than $30 billion in revenues that Northrop Grumman funnels back into lobbying and campaign contributions every year. Senators Trent Lott, John Warner and Ted Stevens have each received more than $10,000 from the company. Paul Wolfowitz, I. Lewis Libby, Richard B. Myers, Dov Zakheim, and Sean O'Keefe — all current or former officials in the Bush Administration — are all former officials, consultants, or primary shareholders of Northrop Grumman.

1. Vinnell Corporation, one of Northrop Grumman’s largest subsidiaries, previously owned by former Secretaries of State James A. Baker III and Frank Carlucci, was recently awarded a $48 million contract to train the new Iraqi army. In the past, retraining of armies has been the work of U.S. Special Forces but Generals in the region say these forces are stretched too thin and the Pentagon was quick to reach for an easy solution to their lack of troops—private contracting through Vinell. Unfortunately, Vinell has been unsuccessful in re-training the Iraqi forces. When the first battalion of newly trained Iraqi Army troops was sent to assist the U.S. forces 480 of the 900 men in the unit deserted for reasons of low pay, faulty equipment, inadequate training and ethnic tensions. Now, $24 million later, the Jordanian Army has been brought in to finish the job Vinnell failed to complete.

2. Northrop Grumman is the only industrial designer, refueler and builder of nuclear-powered aircraft carriers in the U.S. and one of two companies that design and build nuclear-powered submarines.

3. In 2006 Northrop Grumman was awarded $98.7 million to modernize ICBMs (Inter Continental Ballistic Missiles) as part of the U.S. Guidance Replacement Program (GRP). This program will help to extend the life of the U.S. nuclear arsenal, updating the nation’s stock of Weapons of Mass Destruction in a time when the U.S. is pushing for nuclear disarmament in other corners of the world.

Corporation Website: www.northropgrumman.com

CEO: Ronald D. Sugar

Corporate Headquarters: Los Angeles, California