Australian weapon company Electro Optics Systems Holdings (EOS) announced it has signed an exclusive agreement with Northrop Grumman to bid for a $4 billion contract with the United States Army for vehicle-mounted remote weapons systems.

The US Army is expected to release a request proposal for tenders for approximately 10,000 Common Remotely Operated Weapon Station 3 (CROWS 3) in late 2010.

Northrop Grumman will serve as the prime contractor in this partnership with EOS.

Under the agreement, CROWS production capability will now move from EOS to Northrop Grumman plants in the USA. The balance of production will be allocated to existing EOS plants that will immediately be consolidated and upgraded for CROWS.

The Australian firm will charge its US partner a royalty and maintain ownership of the product.

Canberra-based EOS is a world leader in remote optical technology and already provides remote weapons systems, that allow the gunner to remain safely inside the vehicle, to the US and Australian armies. EOS and Recon Optical Inc. were the providers to Army for CROWS 1 up to 2007 when CROWS 2 was awarded to a competitor.

Northrop Grumman, with US$33.8 billion in revenue, is the fourth largest defence contractor in the world. It has a long history of delivering complex integrated platforms to the US Army, having fielded more than 1000 platforms over the last 10 years.