DoD's $453M B-2 Depot Maintenance Contract Awarded to Northrop Grumman Faces Scrutiny
Contract Overview
Contract Amount: $453,016,278 ($453.0M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2022-01-01
End Date: 2026-07-26
Contract Duration: 1,667 days
Daily Burn Rate: $271.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: CY22-24 B-2 PROGRAMMED DEPOT MAINTENANCE
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $453.0 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: CY22-24 B-2 PROGRAMMED DEPOT MAINTENANCE Key points: 1. Significant contract value of $453M for B-2 bomber depot maintenance. 2. Sole-source award to Northrop Grumman raises questions about competition. 3. Potential risks include lack of competitive pricing and limited oversight. 4. Aircraft manufacturing sector context is critical for understanding maintenance needs.
Value Assessment
Rating: questionable
The $453M contract value for programmed depot maintenance on the B-2 bomber is substantial. Without competitive bidding, it's difficult to benchmark pricing against similar services, raising concerns about potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. This lack of competition limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The absence of competition for essential B-2 maintenance could lead to inflated costs, directly impacting taxpayer funds allocated to defense.
Public Impact
Taxpayers may be overpaying for B-2 bomber maintenance due to the sole-source nature of the contract. The long duration (2022-2026) of the contract warrants close monitoring of performance and costs. Dependence on a single contractor for critical aircraft maintenance poses a potential risk to national security if issues arise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
- Long contract duration
Positive Signals
- Essential maintenance for critical defense asset
Sector Analysis
The aircraft manufacturing sector, particularly for specialized defense platforms like the B-2 bomber, often involves complex maintenance requirements. Contracts in this area can be substantial due to the specialized labor and parts involved.
Small Business Impact
There is no indication that small businesses were involved in this contract, as it was awarded sole-source to a large prime contractor. Opportunities for small business subcontracting are not evident from the provided data.
Oversight & Accountability
The sole-source nature of this contract necessitates robust oversight from the Department of the Air Force to ensure fair pricing and effective service delivery. Regular performance reviews and cost audits are crucial.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competitive pricing.
- Potential for cost overruns due to lack of competition.
- Long-term reliance on a single contractor.
- Limited transparency on pricing justification.
- No apparent small business participation.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $453.0 million to NORTHROP GRUMMAN SYSTEMS CORP. CY22-24 B-2 PROGRAMMED DEPOT MAINTENANCE
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 $453.0 million.
What is the period of performance?
Start: 2022-01-01. End: 2026-07-26.
What is the justification for awarding this contract sole-source, and what steps are being taken to ensure cost-effectiveness?
The justification for a sole-source award typically stems from unique capabilities or proprietary knowledge held by the incumbent contractor. To ensure cost-effectiveness, the Department of Defense should implement rigorous performance metrics, conduct regular cost audits, and explore options for future competition or phased competition to drive down prices.
What are the risks associated with relying solely on Northrop Grumman for B-2 depot maintenance over a four-year period?
The primary risks include potential price escalation due to lack of competition, reduced incentive for innovation or efficiency improvements by the contractor, and vulnerability if Northrop Grumman faces operational disruptions or financial difficulties. This dependence could also impact the Air Force's ability to leverage alternative maintenance solutions or expertise.
How will the effectiveness of this depot maintenance be measured, and what are the key performance indicators (KPIs)?
Effectiveness will likely be measured through metrics such as aircraft availability rates, turnaround times for maintenance tasks, quality of repairs (e.g., defect rates post-maintenance), and adherence to schedule. Key Performance Indicators (KPIs) should include mission capable rates, mean time between failures for components repaired, and compliance with technical orders and safety standards.
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: FIXED PRICE INCENTIVE (L)
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: $688,803,892
Exercised Options: $688,803,892
Current Obligation: $453,016,278
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $3,015,024
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
Start Date: 2022-01-01
Current End Date: 2026-07-26
Potential End Date: 2026-07-26 00:00:00
Last Modified: 2025-09-05
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