DoD Awards $73.5M to Northrop Grumman for B-2 Contractor Logistics Support
Contract Overview
Contract Amount: $73,460,406 ($73.5M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2025-03-01
End Date: 2026-07-31
Contract Duration: 517 days
Daily Burn Rate: $142.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-2 CONTRACTOR LOGISTICS SUPPORT (CLS)
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $73.5 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: B-2 CONTRACTOR LOGISTICS SUPPORT (CLS) Key points: 1. Significant contract value for specialized aircraft maintenance. 2. Sole-source award raises questions about competition and pricing. 3. Potential risk associated with single-contractor reliance for critical systems. 4. Focus on IT/Aerospace sector, specifically aircraft manufacturing.
Value Assessment
Rating: questionable
The contract value of $73.5M for 517 days of support is substantial. Without competitive benchmarks, it's difficult to assess if this pricing is optimal compared to similar logistics support contracts for advanced aircraft.
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 may result in higher costs for taxpayers compared to a competitive procurement process.
Taxpayer Impact: The lack of competition for this critical logistics support could lead to higher expenditures than necessary, impacting the efficient use of taxpayer funds.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports high-skilled jobs within the aerospace and defense industry. Highlights reliance on established defense contractors for specialized support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
- Dependence on a single contractor
Positive Signals
- Ensures critical B-2 operational capability
- Supports experienced contractor
- Long-term support agreement
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically focusing on contractor logistics support for a major defense platform. Spending benchmarks in this niche area are often high due to specialized requirements and limited contractor availability.
Small Business Impact
The data indicates this contract was not awarded to small businesses. The nature of B-2 CLS likely requires specialized capabilities typically held by large, established defense contractors, limiting small business participation.
Oversight & Accountability
Oversight will be crucial to ensure Northrop Grumman meets performance requirements and that costs remain within reasonable bounds, especially given the sole-source nature of the award. The Air Force must actively monitor contract execution.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Dependence on a single supplier
- Limited transparency in pricing
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.5 million to NORTHROP GRUMMAN SYSTEMS CORP. B-2 CONTRACTOR LOGISTICS SUPPORT (CLS)
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 $73.5 million.
What is the period of performance?
Start: 2025-03-01. End: 2026-07-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the absence of other qualified sources. The Air Force should have conducted a price analysis, potentially using historical data or independent cost estimates, to ensure the negotiated price was fair and reasonable despite the lack of direct competition.
What are the risks associated with relying solely on Northrop Grumman for B-2 CLS, and how are these risks being mitigated?
The primary risk is the potential for service disruptions or price escalations due to the contractor's sole position. Mitigation strategies could include robust performance metrics, strict contract management, contingency planning for alternative support, and potentially exploring options for future competition or technology insertion.
How does this contract contribute to the overall readiness and cost-effectiveness of the B-2 bomber program?
This contract is essential for maintaining the operational readiness of the B-2 fleet, ensuring the aircraft are available for their intended missions. While sole-source awards can be less cost-effective, the specialized nature of CLS for such a complex platform may justify the expenditure if it guarantees high availability and reduces long-term sustainment costs through expert maintenance.
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 AVENUE M, PALMDALE, CA, 93550
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $232,755,713
Exercised Options: $73,460,406
Current Obligation: $73,460,406
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA861624DB001
IDV Type: IDC
Timeline
Start Date: 2025-03-01
Current End Date: 2026-07-31
Potential End Date: 2028-02-29 00:00:00
Last Modified: 2025-12-17
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