Gov. Mark R. Warner approved an agreement between Northrop Grumman Corporation and the Commonwealth Monday that will include an investment of almost $270 million for modernizing Virginia's information technological infrastructure. The project is also intended to benefit U.Va.-Wise engineering programs.
Northrop Grumman, a defense-contracting company, has been working with the Virginia Information and Technology Agency to develop the proposal for over two years. Warner approved an interim agreement, and upon approval by the General Assembly, both agencies will begin to implement the final contract, Northrop Grumman Company spokesperson Julie Ballesteros said.
"This particular project is very important to Northrop Grumman because we're very committed to the Commonwealth of Virginia," Ballesteros said. "We have 32,000 employees in the Commonwealth, and we're committed to growing our business here."
The contract between the Commonwealth and Northrop Grumman is an effort to make quick and affordable access available to modern hardware and top-of-the-line technical assistance, Warner spokesperson Kevin Hall said.
"This is a really significant agreement to modernize what is now a scattered technology network," Hall said.
The 10-year, $2 billion contract between the Commonwealth and Northrop Grumman will bring hundreds of new jobs to the Commonwealth and offer the opportunity for more than 900 VITA employees to move into the private sector with Northrop Grumman, according to Ballesteros.
"The other good thing about this project with VITA is that all Virginia citizens will benefit from improved technology," she said, referring to the improved technology that will be made available in government agencies such as the Department of Motor Vehicles.
At Warner's insistence, a large portion of the agreement focuses on the revitalization of the Southwest Virginia region and other parts of the Commonwealth that have not shared in the success of the information technology industry, Hall said.
The agreement includes a partnership between the University and Northrop Grumman that will be based at the U.Va.-Wise campus. U.Va.-Wise currently offers two majors in the mathematics department, computer science and management information systems, and is developing a software engineering program. All these programs will benefit from investment by the company, U.Va.-Wise spokesperson Jane Dean said.
"We still are figuring out how we fit into the partnership, and I think everybody is excited about the opportunity," Dean said.
Commonwealth citizen's tax money that would have gone to state efforts to maintain information technologies now will go to Northrop Grumman, Hall said.
"It's financially attractive for the company and financially responsible for the state," he said.
As part of the proposal, Northrop Grumman has indicated it will recruit from among students, establish internship programs and create a back-up help desk on the U.Va-Wise campus, Hall said.
"The governor thinks that this is great news for the taxpayers because it saves money, and it's great news for the Southwest region which desperately needs quality jobs," he said. "And it's especially good news for U.Va-Wise because it will create a partnership going forward."