DoD Spends $36M on B-52 Engine Cowl Repairs, Awarded Sole-Source to Northrop Grumman
Contract Overview
Contract Amount: $36,266,311 ($36.3M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2020-07-16
End Date: 2023-07-31
Contract Duration: 1,110 days
Daily Burn Rate: $32.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: COVID-19 2020 REPAIR OF B-52 ENGINE NOSE COWLS
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $36.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: COVID-19 2020 REPAIR OF B-52 ENGINE NOSE COWLS Key points: 1. Significant expenditure on aircraft parts repair highlights ongoing maintenance needs for aging fleets. 2. Sole-source award to Northrop Grumman raises questions about competitive pricing and potential cost efficiencies. 3. The extended contract duration suggests a complex or lengthy repair process. 4. Focus on a specific aircraft component indicates specialized maintenance requirements within the Air Force.
Value Assessment
Rating: questionable
The $36.26 million contract for B-52 engine cowl repairs appears high given the specific nature of the item. Benchmarking against similar specialized aircraft component repairs is difficult without more data, but the lack of competition suggests potential for inflated pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This significantly limits price discovery and may lead to higher costs for taxpayers compared to a competitive procurement process.
Taxpayer Impact: The sole-source nature of this award means taxpayers may have paid a premium for these repairs, as competition was absent.
Public Impact
Taxpayers fund critical repairs for aging military aircraft, ensuring operational readiness. The award impacts a major defense contractor, Northrop Grumman, in the aerospace manufacturing sector. This spending contributes to the maintenance and longevity of the B-52 bomber fleet.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price scrutiny.
- High contract value for a specific repair item.
- Lack of small business participation noted.
Positive Signals
- Addresses critical maintenance for a strategic asset (B-52).
- Supports a key defense contractor's operations.
Sector Analysis
The aerospace and defense sector is characterized by high-value, specialized contracts. Spending on aircraft maintenance and repair is a significant component, often involving complex systems and long-standing relationships with prime contractors like Northrop Grumman.
Small Business Impact
This contract was not awarded to small businesses, as indicated by the prime contractor being Northrop Grumman. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, awarded this contract. Oversight would typically involve contract management reviews, performance monitoring, and financial audits to ensure proper execution and prevent waste, fraud, and abuse.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award.
- High contract value.
- Lack of competition.
- Potential for cost overruns due to lack of competitive pressure.
- Aging aircraft maintenance costs.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.3 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. COVID-19 2020 REPAIR OF B-52 ENGINE NOSE COWLS
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
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 $36.3 million.
What is the period of performance?
Start: 2020-07-16. End: 2023-07-31.
What is the specific technical justification for awarding this contract sole-source, and were alternative solutions considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. For B-52 engine cowl repairs, this could relate to specific design elements or specialized repair techniques only Northrop Grumman possesses. A thorough review would confirm if alternatives were explored and why they were deemed unsuitable.
How does the per-unit cost of these repairs compare to historical data or industry benchmarks for similar aircraft components?
Without specific per-unit cost breakdowns and access to proprietary industry benchmarks, a direct comparison is challenging. However, the overall contract value of $36.26 million for repairs suggests a substantial cost per unit. The absence of competition inherently makes it difficult to ascertain if this cost is competitive or inflated, warranting further investigation into cost elements.
What is the long-term strategy for B-52 maintenance, and could future repairs be procured more competitively?
The long-term strategy for B-52 maintenance likely involves ongoing sustainment programs. To improve future competitiveness, the Air Force could explore options like developing more standardized repair specifications, encouraging competition among certified repair facilities, or investing in in-house repair capabilities where feasible. This could reduce reliance on sole-source awards and potentially lower costs.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA811920R0013
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 7575 COLSHIRE DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $36,266,311
Exercised Options: $36,266,311
Current Obligation: $36,266,311
Subaward Activity
Number of Subawards: 1134
Total Subaward Amount: $207,910,818
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-07-16
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2025-07-02
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