DoD Awards Northrop Grumman $26.8M for B-2 Collaborative Combat Communication

Contract Overview

Contract Amount: $26,832,995 ($26.8M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2023-12-15

End Date: 2024-10-31

Contract Duration: 321 days

Daily Burn Rate: $83.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: B-2 COLLABORATIVE COMBAT COMMUNICATION

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: B-2 COLLABORATIVE COMBAT COMMUNICATION Key points: 1. Significant contract for advanced aircraft communication systems. 2. Sole-source award to Northrop Grumman, a major defense contractor. 3. Potential for cost overruns given the Cost Plus Fixed Fee structure. 4. Focus on IT and Defense sectors, critical for national security.

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs than fixed-price contracts if not managed carefully. The benchmark of $83,592 per delivery order suggests a potentially high cost per unit, requiring close monitoring.

Cost Per Unit: $83,592

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially reduces competitive pressure, which could impact overall cost-effectiveness for the taxpayer.

Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract.

Public Impact

Enhances communication capabilities for the B-2 bomber fleet. Supports advanced technological integration within military aircraft. Impacts national defense readiness and operational effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Cost Plus Fixed Fee structure carries inherent cost risk.
Lack of small business participation noted.

Positive Signals

Critical technology for advanced military platforms.
Supports a key defense contractor's capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically related to aircraft manufacturing and IT integration. Spending benchmarks in this area are highly variable due to the specialized nature of defense technology, but large sole-source awards warrant scrutiny.

Small Business Impact

The data indicates no specific set-aside for small businesses in this contract. This is common for large, specialized defense contracts awarded to prime contractors like Northrop Grumman.

Oversight & Accountability

As a sole-source award for a critical defense system, this contract warrants close oversight from the Department of the Air Force to ensure cost control and adherence to contract terms.

Related Government Programs

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

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of small business participation
High benchmark cost per delivery order

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to NORTHROP GRUMMAN SYSTEMS CORP. B-2 COLLABORATIVE COMBAT COMMUNICATION

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 $26.8 million.

What is the period of performance?

Start: 2023-12-15. End: 2024-10-31.

What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?

Sole-source awards are typically justified by unique capabilities or urgent needs. The Department of the Air Force should have documented the specific reasons for not competing this contract. To ensure fair pricing, they should conduct robust cost analysis, benchmark against similar systems, and negotiate aggressively with the contractor.

What are the potential risks associated with the Cost Plus Fixed Fee contract type for this specific system?

The CPFF structure incentivizes the contractor to incur costs, as their fee is a percentage of those costs. This can lead to cost overruns if not tightly managed. Risks include scope creep, inefficient resource allocation, and difficulty in establishing a firm ceiling on the total expenditure, potentially exceeding initial estimates.

How will the effectiveness of this new communication system be measured and validated post-delivery?

Effectiveness will likely be measured through rigorous testing and evaluation (T&E) protocols, including flight tests and simulations, to ensure it meets specified performance requirements. Post-delivery, operational feedback from B-2 crews and ongoing performance monitoring will validate its real-world utility and contribution to mission success.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

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 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: $26,832,995

Exercised Options: $26,832,995

Current Obligation: $26,832,995

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $2,512,386

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