DoD Awards $89.7M for B-2 Contractor Support to Northrop Grumman, Extending Through 2025

Contract Overview

Contract Amount: $89,652,068 ($89.7M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2017-04-01

End Date: 2025-11-30

Contract Duration: 3,165 days

Daily Burn Rate: $28.3K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF B-2 INTERIM CONTRACTOR SUPPORT

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $89.7 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: IGF::OT::IGF B-2 INTERIM CONTRACTOR SUPPORT Key points: 1. Significant contract value for ongoing aircraft manufacturing support. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long contract duration (over 8 years) warrants close monitoring for performance and cost. 4. Focus on a critical defense asset (B-2 bomber) highlights national security implications.

Value Assessment

Rating: questionable

The contract value of $89.7 million over its duration appears substantial. Without competitive bidding, it's difficult to benchmark against similar support contracts for advanced aircraft, raising concerns about whether the government is receiving the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This 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 market pressure to drive down the price.

Taxpayer Impact: The lack of competition in this sole-source award may result in higher expenditures for taxpayers compared to a scenario where multiple vendors could bid on the contract.

Public Impact

Ensures continued operational readiness of the B-2 bomber fleet. Supports critical defense capabilities for national security. Potential for cost overruns due to sole-source nature. Impacts the aerospace and defense sector's supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Long contract duration.
Lack of clear performance metrics in provided data.
High contract value.

Positive Signals

Supports critical defense asset.
Ensures operational readiness.
Firm Fixed Price contract type.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting the B-2 bomber. Spending in this niche area is typically high due to the complexity and strategic importance of the platforms involved. Benchmarks are difficult without comparable sole-source contracts.

Small Business Impact

The data indicates this contract was not awarded to small businesses. The prime contractor, Northrop Grumman, is a large aerospace and defense corporation. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

Given the sole-source nature and long duration, robust oversight is crucial. The Air Force must ensure rigorous performance monitoring, cost controls, and justification for continued sole-source awards to maintain accountability and protect taxpayer interests.

Related Government Programs

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

Risk Flags

Lack of competition.
Potential for cost creep over long duration.
Limited transparency on performance metrics.
High reliance on a single contractor for critical asset support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $89.7 million to NORTHROP GRUMMAN SYSTEMS CORP. IGF::OT::IGF B-2 INTERIM CONTRACTOR SUPPORT

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 $89.7 million.

What is the period of performance?

Start: 2017-04-01. End: 2025-11-30.

What is the justification for the sole-source award, and have alternative competitive strategies been considered?

The justification for this sole-source award is not provided in the data. Typically, sole-source contracts are used when only one responsible source can provide the required supplies or services. The Air Force should have thoroughly documented why competition was not feasible and explored all avenues for achieving a more competitive environment, even for specialized support.

How are cost efficiencies being ensured throughout the contract's extended duration?

With a firm fixed-price contract, the contractor bears the risk of cost overruns. However, without competition, the initial price might be inflated. The Air Force should implement strong program management, conduct regular cost reviews, and potentially include incentive clauses or options for future competition to ensure cost efficiencies.

What performance metrics are in place to measure the effectiveness of Northrop Grumman's support for the B-2?

The provided data does not detail specific performance metrics. Effective oversight requires clear, measurable Key Performance Indicators (KPIs) related to aircraft availability, maintenance turnaround times, system reliability, and adherence to schedules. The Air Force must actively track these metrics to ensure the contractor is delivering value and meeting operational requirements.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $89,652,068

Exercised Options: $89,652,068

Current Obligation: $89,652,068

Subaward Activity

Number of Subawards: 82

Total Subaward Amount: $100,311,439

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA861614D6060

IDV Type: IDC

Timeline