DoD Awards Northrop Grumman $181M for B-2 Stealth Aircraft Parts

Contract Overview

Contract Amount: $181,213,128 ($181.2M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2000-03-13

End Date: 2000-12-31

Contract Duration: 293 days

Daily Burn Rate: $618.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200012!5700!000075!GU22 !ASC/YSK !F3365799D0028 !A!*!0005 !20000313!20001231!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS ANGELES !CALIFORNIA!0001!+000035000000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !3ABK!B-2 STEALTH !3721!5!A!S!*!B!N!Z!D !N!J!1!001!N!1G!A!Y!Z!* !* !N!C!*!B!B!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $181.2 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: 200012!5700!000075!GU22 !ASC/YSK !F3365799D0028 !A!*!0005 !20000313!20001231!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS… Key points: 1. Significant contract value for specialized aircraft components. 2. Sole-source award raises questions about competition and pricing. 3. High-risk, high-reward program with critical national security implications. 4. Sector focus on advanced aerospace manufacturing and defense.

Value Assessment

Rating: questionable

The contract value of $181M for aircraft parts is substantial. Without comparable contracts or detailed cost breakdowns, it's difficult to assess if this price is competitive or represents fair value for the specialized components provided for the B-2 stealth program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competed procurement.

Taxpayer Impact: The sole-source nature of this award potentially leads to higher expenditures for taxpayers due to the absence of competitive pressure on pricing.

Public Impact

Taxpayers fund critical, but potentially overpriced, components for advanced stealth aircraft. National security relies on specialized parts from a single, high-cost provider. Lack of transparency in sole-source awards hinders public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value
Limited transparency

Positive Signals

Critical defense capability
Experienced contractor
Essential aircraft components

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically for airframes and spares for advanced military aircraft. Spending in this sector is often characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.

Small Business Impact

The contract was awarded to Northrop Grumman, a large prime contractor. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact on the small business sector for this specific award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. Accountability mechanisms should be robust to justify the expenditure without competitive benchmarking.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing.
Limited transparency in cost justification.
Dependence on a single contractor.
High value contract requires scrutiny.
National security implications necessitate careful management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $181.2 million to NORTHROP GRUMMAN SYSTEMS CORP. 200012!5700!000075!GU22 !ASC/YSK !F3365799D0028 !A!*!0005 !20000313!20001231!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS ANGELES !CALIFORNIA!0001!+000035000000!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !3ABK!B-2 STEALTH !3721!5!A!S!*!B!N!Z!D !N!J!

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 $181.2 million.

What is the period of performance?

Start: 2000-03-13. End: 2000-12-31.

What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other responsible sources. The contracting agency would have conducted a price analysis, potentially using historical data, cost proposals, or independent government cost estimates, to determine if the price was fair and reasonable, despite the lack of competition.

What are the risks associated with relying on a single supplier for critical B-2 stealth aircraft components?

Risks include potential supply chain disruptions if the sole supplier faces issues, lack of incentive for cost reduction or innovation, and vulnerability to price increases. Dependence on one entity can also reduce negotiating leverage for the government, potentially leading to higher long-term costs and reduced program flexibility.

How does this contract contribute to the overall effectiveness and readiness of the B-2 stealth bomber fleet?

This contract is crucial for maintaining the operational readiness and effectiveness of the B-2 fleet by ensuring the availability of essential airframes and spare parts. The timely delivery of these components directly supports flight operations, maintenance, and the overall mission capability of this strategic asset.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 3520 E AVE M, PALMDALE, CA, 93550

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3365799D0028

IDV Type: IDC

Timeline