DoD Awards Northrop Grumman $94.9M for B-2 ESDO, Extending to March 2026

Contract Overview

Contract Amount: $94,883,517 ($94.9M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2022-12-14

End Date: 2026-03-31

Contract Duration: 1,203 days

Daily Burn Rate: $78.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: B-2 ESDO 23-25

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $94.9 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: B-2 ESDO 23-25 Key points: 1. Significant contract value of $94.9 million awarded to a single large business. 2. Sole-source award raises questions about competition and potential price discovery. 3. Long contract duration of 1203 days warrants close monitoring for cost overruns. 4. Focus on Aircraft Manufacturing sector, a critical area for defense spending.

Value Assessment

Rating: questionable

The contract value of $94.9 million for the B-2 ESDO program appears substantial. Without comparable contract data for similar aircraft sustainment services, a precise pricing assessment is difficult. However, 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, indicating no competitive bidding process. This significantly limits price discovery and may lead to higher costs for the government compared to a competed contract.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium due to the absence of competitive pressure to reduce costs.

Public Impact

Taxpayers fund critical sustainment for the B-2 bomber fleet. The award impacts the aerospace and defense manufacturing sector. Long-term contract raises concerns about sustained cost-effectiveness. Potential for follow-on contracts could extend spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
No small business participation

Positive Signals

Supports critical defense asset
Established contractor with relevant experience

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically supporting the B-2 bomber. Spending in this area is typically high due to the complexity and strategic importance of advanced aircraft. Benchmarks for sustainment contracts of this nature are difficult to ascertain without more specific program details.

Small Business Impact

The contract data indicates no small business participation (sb: false). This sole-source award to a large corporation bypasses opportunities for small businesses to contribute to this defense program, potentially limiting economic impact for smaller enterprises.

Oversight & Accountability

The long duration and sole-source nature of this contract necessitate robust oversight from the Department of the Air Force to ensure cost control and performance. Regular reviews and audits will be crucial to maintain accountability.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for cost overruns due to lack of competitive pressure.
No small business participation.
Long contract duration increases risk exposure.
Lack of transparency in pricing justification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.9 million to NORTHROP GRUMMAN SYSTEMS CORP. B-2 ESDO 23-25

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 $94.9 million.

What is the period of performance?

Start: 2022-12-14. End: 2026-03-31.

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

The justification for a sole-source award typically involves unique capabilities or critical national security needs that only one contractor can meet. To ensure fair pricing, the Department of Defense should conduct thorough cost and price analyses, potentially using historical data or independent cost estimates. Transparency in these analyses and regular performance reviews are essential for accountability.

What are the potential risks associated with the long contract duration and sole-source nature of this award?

The primary risks include potential cost overruns due to a lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency, and the possibility of vendor lock-in. A long duration also increases exposure to changing technological landscapes and geopolitical factors that could impact program relevance or cost-effectiveness over time.

How does this spending align with the overall strategic goals for the B-2 program and the Department of Defense?

This spending is likely aligned with maintaining the operational readiness and effectiveness of the B-2 bomber fleet, a key strategic asset. Ensuring the sustainment of such advanced platforms is crucial for national security. However, the specific alignment depends on the current threat environment and the long-term role envisioned for the B-2 within the broader defense strategy.

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 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: $97,762,084

Exercised Options: $97,762,084

Current Obligation: $94,883,517

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