DoD awards $864M contract for B-2 DMS-M EMD, with Northrop Grumman as sole provider
Contract Overview
Contract Amount: $863,696,882 ($863.7M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2016-02-02
End Date: 2022-12-16
Sector: Defense
Official Description: ACAT 1D B-2 DMS-M EMD
Plain-Language Summary
Department of Defense obligated $863.7 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: ACAT 1D B-2 DMS-M EMD Key points: 1. Significant investment in critical bomber modernization program. 2. Sole-source award raises competition concerns. 3. Long-term contract duration presents potential cost escalation risks. 4. Program aims to enhance the B-2's electronic warfare capabilities.
Value Assessment
Rating: good
The contract value of approximately $864 million for the B-2 DMS-M EMD phase indicates a substantial investment in a critical defense system. The award covers engineering and manufacturing development, suggesting a focus on advanced capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis to Northrop Grumman Systems Corp. This approach was likely chosen due to the specialized nature of the B-2 bomber and its associated systems, where only one contractor possesses the necessary expertise and access.
Taxpayer Impact: Taxpayer funds are directed to a single contractor for specialized defense system development, potentially limiting competitive pricing benefits.
Public Impact
Modernization of the B-2 fleet ensures continued strategic deterrence. Advanced electronic warfare capabilities will enhance survivability and mission effectiveness. Investment supports high-tech jobs within the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- Long contract duration may lead to cost overruns if not managed effectively.
- Dependence on a single supplier creates supply chain risk.
Positive Signals
- Addresses critical modernization needs for a key strategic asset.
- Northrop Grumman has extensive experience with the B-2 platform.
- Focus on advanced technology development.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the modernization of strategic bomber platforms. The B-2 DMS-M EMD program is crucial for maintaining the technological edge of the U.S. Air Force's bomber fleet.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corp and does not appear to have small business set-aside provisions. Given the sole-source nature and specialized requirements, it is unlikely that small businesses would be primary awardees.
Oversight & Accountability
Oversight will be critical to ensure that the engineering and manufacturing development stays within budget and on schedule. The Department of Defense's Defense Contract Management Agency (DCMA) will likely monitor performance and costs closely.
Related Government Programs
- B-2 Bomber Modernization
- Electronic Warfare Systems
- Engineering and Manufacturing Development
Risk Flags
- Sole Source Justification
- Long-Term Contract
- Critical System Modernization
Tags
department-of-defense, northrop-grumman, b-2-bomber, electronic-warfare, emd, sole-source, contract-award, aerospace, modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $863.7 million to NORTHROP GRUMMAN SYSTEMS CORP. ACAT 1D B-2 DMS-M EMD
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $863.7 million.
What is the period of performance?
Start: 2016-02-02. End: 2022-12-16.
Analysis insight 1
The B-2 DMS-M EMD contract focuses on enhancing the bomber's digital modernization capabilities.
Analysis insight 2
This investment is crucial for the B-2's continued relevance in contested environments.
Analysis insight 3
The sole-source nature necessitates rigorous oversight to ensure value for taxpayer money.