DoD Awards Northrop Grumman $19.6M for Aircraft Manufacturing Sustainment Through 2028
Contract Overview
Contract Amount: $19,649,945 ($19.6M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2028-12-31
Contract Duration: 1,095 days
Daily Burn Rate: $17.9K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: THIS REQUIREMENT IS IN ACCORDANCE TO B-2 CY26-CY28 CAPABILITIES, DEVELOPMENT, INNOVATION, AND SUSTAINMENT (CDIS) II PWS DATED 12 DECEMBER 2025.
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $19.6 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: THIS REQUIREMENT IS IN ACCORDANCE TO B-2 CY26-CY28 CAPABILITIES, DEVELOPMENT, INNOVATION, AND SUSTAINMENT (CDIS) II PWS DATED 12 DECEMBER 2025. Key points: 1. Contract awarded to Northrop Grumman Systems Corp for aircraft manufacturing sustainment. 2. The contract spans three years, from January 2026 to December 2028. 3. This is a delivery order under a larger IDIQ contract (CDIS II). 4. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 5. No small business participation is noted in this specific award.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee structure can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking against similar sustainment contracts for aircraft manufacturing is difficult without more detailed scope information.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This award is a delivery order under the CDIS II IDIQ, which was likely competed previously. However, the specific award mechanism for this delivery order is not detailed, suggesting it may not have been fully competed at the task order level.
Taxpayer Impact: Taxpayer funds are committed for sustainment activities, with the final cost dependent on actual expenses incurred plus the fixed fee.
Public Impact
Ensures continued operational readiness for Air Force aircraft through sustainment services. Supports a major defense contractor, potentially impacting jobs within the aerospace sector. The long-term nature of the CDIS II contract suggests ongoing investment in aircraft capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Lack of small business participation in this specific award.
- Limited transparency on competition for this specific delivery order.
Positive Signals
- Addresses critical sustainment needs for Air Force aircraft.
- Provides multi-year funding stability for the contractor.
- Part of a larger, potentially competitive IDIQ contract (CDIS II).
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, a critical component of national defense. Spending in this area is often characterized by long-term sustainment needs and high R&D investments.
Small Business Impact
This specific delivery order does not indicate any small business participation. Analysis of the broader CDIS II IDIQ contract would be needed to assess overall small business utilization.
Oversight & Accountability
The CDIS II IDIQ likely has established oversight mechanisms. However, the specifics of oversight for this particular delivery order, especially concerning cost controls under the CPFF structure, require further examination.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Limited visibility into the specific competition for this delivery order.
- No noted small business participation.
- Reliance on a single large contractor for critical sustainment.
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $19.6 million to NORTHROP GRUMMAN SYSTEMS CORP. THIS REQUIREMENT IS IN ACCORDANCE TO B-2 CY26-CY28 CAPABILITIES, DEVELOPMENT, INNOVATION, AND SUSTAINMENT (CDIS) II PWS DATED 12 DECEMBER 2025.
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 $19.6 million.
What is the period of performance?
Start: 2026-01-01. End: 2028-12-31.
What specific sustainment activities are included in this delivery order, and how do they align with the CDIS II PWS objectives?
The provided data does not detail the specific sustainment activities. However, the reference to the CDIS II PWS suggests activities related to capabilities, development, innovation, and sustainment of Air Force systems. A thorough review of the PWS and the delivery order's statement of work would be necessary to understand the precise scope and alignment.
What is the rationale for using a Cost Plus Fixed Fee contract type for this sustainment effort, and what controls are in place to manage costs?
CPFF contracts are often used when the scope of work is not precisely defined or when there is significant uncertainty in costs. For sustainment, this might apply to unforeseen repair needs or evolving technological requirements. Robust oversight, detailed cost tracking, and clear milestones are crucial to manage costs effectively under this structure.
How does this delivery order contribute to the overall effectiveness and readiness of the Air Force's aircraft fleet?
This delivery order directly supports the ongoing maintenance and operational readiness of Air Force aircraft. By ensuring sustainment capabilities are in place through 2028, it helps mitigate risks of mission degradation due to equipment failure or obsolescence, thereby contributing to the fleet's overall effectiveness.
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: COST PLUS FIXED FEE (U)
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: $225,309,957
Exercised Options: $75,081,081
Current Obligation: $19,649,945
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: 2026-01-01
Current End Date: 2028-12-31
Potential End Date: 2028-12-31 00:00:00
Last Modified: 2025-12-18
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