DOD issues transportation contract

The Defense Department has awarded a team of contractors headed by Northrop Grumman Corp. the Agile Transportation for the 21st Century contract to improve management of the Defense Transportation System.

DOD awarded the AT21 contract, which will support the Transportation Command, through the Defense Information Systems Agency's NexGen contract vehicle to Northrop Grumman's IT division. The deal is worth $9.6 million in the first year and up to $25 million over three years.

Under the contract, Northrop Grumman IT will use advanced technology to help the Defense Transportation System better manage its operations in peacetime and during war, officials said in a press release.

Automated tools developed by Northrop Grumman will select the best mode of transportation for a specific shipment, saving time from the current system, which requires Defense officials to make such decisions and give orders via telephone.

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