DoD Awards Northrop Grumman $262M for B-2 Stealth Aircraft Parts

Contract Overview

Contract Amount: $26,211,102 ($26.2M)

Contractor: Northrop Grumman Corporation

Awarding Agency: Department of Defense

Start Date: 1999-02-17

End Date: 2008-08-16

Contract Duration: 3,468 days

Daily Burn Rate: $7.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 199910!5700!0052!GU22 !ASC/YSK !F3365797D0012 !A!*!0008 !19990217!20011016!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS ANGELES !CALIFORNIA!0001!+000000100500!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !3ABK!B-2 STEALTH !3721!5!B!S!*!B!A!*!D !N!R!2!001!N!1G!Z!Y!Z!* !* !N!C!*!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 $26.2 million to NORTHROP GRUMMAN CORPORATION for work described as: 199910!5700!0052!GU22 !ASC/YSK !F3365797D0012 !A!*!0008 !19990217!20011016!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS AN… Key points: 1. Contract awarded to Northrop Grumman for B-2 stealth aircraft components. 2. Significant value of $262 million for airframes and spares. 3. Awarded as 'Not Competed', raising questions about competition. 4. Sector: Defense, specifically Aircraft Manufacturing.

Value Assessment

Rating: questionable

The contract type is 'Cost Plus Award Fee', which can lead to higher costs if not managed carefully. Benchmarking against similar B-2 component contracts is difficult due to the specialized nature of the aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there is no competitive pressure.

Taxpayer Impact: The lack of competition for this significant contract may result in taxpayers paying more than necessary for B-2 aircraft parts.

Public Impact

Taxpayers may be overpaying for critical defense components due to a lack of competition. The B-2 bomber program relies on specialized parts, making oversight crucial. This contract highlights potential vulnerabilities in defense procurement processes for unique assets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Award Fee contract type
Long contract duration

Positive Signals

Awarded to a known prime contractor for a critical defense system
Contract supports ongoing operations of a strategic asset

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is critical for national security but requires robust oversight to ensure value for money, especially for specialized platforms like the B-2.

Small Business Impact

This contract was awarded to Northrop Grumman, a large prime contractor. There is no indication of small business participation in this specific award, which is common for highly specialized defense manufacturing contracts.

Oversight & Accountability

The 'Not Competed' status warrants further investigation into the justification for bypassing the competitive bidding process. Oversight should focus on the cost control and performance metrics within the Cost Plus Award Fee structure.

Related Government Programs

Aircraft Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition raises cost concerns.
Cost Plus Award Fee contract type can lead to overspending.
Long contract duration increases exposure to cost growth.
Sole-source award limits price discovery.
Potential for contractor lock-in due to specialized knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.2 million to NORTHROP GRUMMAN CORPORATION. 199910!5700!0052!GU22 !ASC/YSK !F3365797D0012 !A!*!0008 !19990217!20011016!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS ANGELES !CALIFORNIA!0001!+000000100500!N!N!000000000000!1510!AIRCRAFT FIXED WING !A1A!AIRFRAMES AND SPARES !3ABK!B-2 STEALTH !3721!5!B!S!*!B!A!*!D !N!R!2!0

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.2 million.

What is the period of performance?

Start: 1999-02-17. End: 2008-08-16.

What was the specific justification for not competing this contract, given the significant taxpayer investment?

The justification for not competing this contract likely stems from the highly specialized nature of B-2 stealth aircraft components and the need for specific expertise held by Northrop Grumman. However, without detailed documentation, it's difficult to definitively assess if alternative sources were truly unavailable or if the sole-source decision was the most cost-effective approach for the government.

How effectively were costs managed under this Cost Plus Award Fee contract to mitigate potential overspending?

Effectiveness in cost management under a Cost Plus Award Fee contract hinges on the clarity of performance metrics and the rigor of government oversight. While the award fee structure incentivizes performance, it also carries inherent risks of cost escalation if targets are not strictly defined and monitored. Detailed audits and performance reviews would be necessary to assess actual cost control effectiveness.

What is the long-term strategic value and cost-effectiveness of continuing to procure parts for the B-2 bomber through non-competitive means?

The long-term value of procuring B-2 parts non-competitively depends on the remaining service life of the aircraft and the availability of specialized manufacturing capabilities. While it ensures continued operation of a strategic asset, the lack of competition raises concerns about sustained cost-effectiveness. Exploring options for future sustainment, potentially including competitive strategies or technology insertion, could be beneficial.

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: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Address: 8900 WASHINGTON BLVD, PICO RIVERA, CA, 38

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3365797D0012

IDV Type: IDC

Timeline