The Washington Post reports that Northrop Grumman wants to sell its consulting unit TASC. Carlyle, who purchased Booze-Allen's Government advisory business at a similar price tag, could be a buyer but likely not any other big defense firm.
"Wall Street analysts, who estimated the unit's value at up to $2 billion, said it is unlikely that Northrop's competitors -- such as Boeing, Lockheed Martin and Raytheon -- will be potential buyers, given a new law President Obama signed in the spring. It requires defense contractors to set up clearer lines separating their work as advisers to the government and as sellers of hardware and weapons systems."
It seems firms like Northrop don't want their consulting businesses getting in the way of big awards in the future, especially in a shrinking landscape for major programs. This could also be a sign simply that the technical services/advisory sector is a crowded one where Northrop is not much of a player.