Northrop Grumman picks Northern Virginia for new corporate headquarters
- April 27, 2010
Northern Virginia emerged the winner in a three-way race to land the global corporate headquarters of defense giant Northrop Grumman. What was a heated competition among Virginia, Maryland, and Washington, D.C. now comes down to a race between Virginia localities, with the company still mulling over the address for its new home. It appears that either Arlington County or Fairfax County will get the nod, a corporate prize that will bring 300 jobs and an estimated $30 million in tax revenue over the next decade.
During a joint press conference today in Rosslyn with Gov. Bob McDonnell, Northrop Grumman Chairman Wes Bush said that Virginia’s complete package of economic incentives, the availability of attractive real estate properties and general business conditions were key factors in the company’s decision to opt for Northern Virginia. Virginia is offering $12 to $14 million in incentives as part of the deal that would move Northrop Grumman’s headquarters from Los Angeles to the state by summer 2011.
McDonnell did not announce a specific site, but the company has been looking at properties in Fairview Park in Fairfax County near Falls Church and at a JBG Cos. building on Glebe Road in Arlington County. Bush said Northrop Grumman expects to make a decision on location by the end of May. The company, a major government contractor, already is one of the Washington region’s largest employers, with about 40,000 workers.
In a statement issued by the company, Bush said Virginia, Maryland, and D.C. all put forth compelling offers. “Our final decision was driven largely by facility considerations, proximity to our customers, and overall economics.”
For McDonnell, the news was considered an important symbolic win for his administration, which has made job creation a top priority. “To gain the corporate headquarters of one of the largest global security contractors in the world is a testament to the strong business climate that we are focused on continually improving,” the governor said.
Northrop Grumman also is the state’s largest private contractor, providing computer services to more than 80 state agencies. The relocation decision comes 20 days after the company and Virginia revised a 10-year, $2.3 billion contract to resolve controversial performance and financial issues, which included missed deadlines. The new deal extends the contract by three years to 2019, incurs $105 million in estimated new costs for the state and demands a higher level of service from Northrop Grumman.