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Record defense budget request, buildup accelerates
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Northrop Grumman has acquired TRW in a $7.8 billion deal, creating the second-largest U.S. defense contractor with over $26 billion in annual revenue. The merger enhances Northrop's space capabilities while plans to divest TRW's automotive and aeronautical businesses are underway. The combined entity strengthens its federal IT and defense contracting position, with significant implications for market competition and government contracting dynamics.
President Bush signed the Homeland Security Act on November 25, 2002, merging 22 federal agencies and about 170,000 employees into a new cabinet-level Department of Homeland Security, the biggest federal reorganization in more than half a century. Tom Ridge was named its first secretary, and the department opened a large new homeland-security contracting market.