DoD Awards $28.9M for B-2 Advanced Signature Reduction Project to Northrop Grumman
Contract Overview
Contract Amount: $28,900,678 ($28.9M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2023-01-13
End Date: 2026-06-12
Contract Duration: 1,246 days
Daily Burn Rate: $23.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: B-2 ADVANCED SIGNATURE REDUCTION PROJECT 1 PRODUCTION
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $28.9 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: B-2 ADVANCED SIGNATURE REDUCTION PROJECT 1 PRODUCTION Key points: 1. Significant investment in advanced stealth technology for the B-2 bomber. 2. Sole-source award to Northrop Grumman, raising questions about competition. 3. Long-term contract duration (1246 days) suggests a complex, ongoing project. 4. Focus on Aircraft Manufacturing sector, a critical defense capability.
Value Assessment
Rating: fair
The contract value of $28.9M for advanced signature reduction is substantial. Without comparable contracts or detailed cost breakdowns, assessing its pricing against similar projects is difficult. The firm fixed-price structure offers some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This approach may limit price discovery and potentially lead to higher costs for taxpayers, though it could be justified by unique capabilities or proprietary technology.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from competitive pricing, potentially increasing the overall cost of the B-2 program's modernization.
Public Impact
Enhances survivability of the B-2 bomber fleet, a key strategic asset. Supports advanced aerospace manufacturing and technological development. Potential for follow-on contracts and sustainment activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price transparency.
- Long contract duration may obscure cost efficiencies.
- Lack of detailed public cost data.
Positive Signals
- Addresses critical defense capability for B-2 modernization.
- Utilizes established prime contractor with relevant expertise.
- Firm fixed-price contract provides cost predictability.
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, which is characterized by high R&D costs, long production cycles, and significant government investment. Benchmarks for signature reduction technologies are highly specialized and often proprietary.
Small Business Impact
The awardee, Northrop Grumman Systems Corp, is a large aerospace company. There is no indication of small business participation in this specific contract award, which is common for large, sole-source defense prime contracts.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. Given the sole-source nature, robust oversight is crucial to ensure the contractor meets performance requirements and manages costs effectively within the fixed-price structure.
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 despite fixed-price.
- Long-term duration may reduce agility.
- Lack of transparency on specific technological advancements.
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 $28.9 million to NORTHROP GRUMMAN SYSTEMS CORP. B-2 ADVANCED SIGNATURE REDUCTION PROJECT 1 PRODUCTION
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 $28.9 million.
What is the period of performance?
Start: 2023-01-13. End: 2026-06-12.
What specific technological advancements does this signature reduction project entail, and how do they contribute to the B-2's mission effectiveness?
The project likely focuses on enhancing the B-2's stealth capabilities by reducing its radar, infrared, and acoustic signatures. These advancements are critical for the bomber's survivability in contested airspace, enabling it to penetrate advanced enemy air defenses and execute strategic missions with reduced risk of detection and engagement.
What is the justification for awarding this contract on a sole-source basis, and what measures are in place to ensure fair pricing?
Sole-source awards are typically justified by unique capabilities, proprietary technology, or the lack of viable alternative sources. The Department of Defense likely conducted a source selection justification. Fair pricing is intended to be ensured through the firm fixed-price contract type, which shifts cost risk to the contractor, and through internal DoD cost analysis processes.
How will the effectiveness of the signature reduction technologies be measured and validated throughout the contract period?
Effectiveness will likely be measured through a combination of laboratory testing, ground-based measurements, and potentially flight testing. The contract should include specific performance metrics and acceptance criteria that Northrop Grumman must meet. Independent verification and validation by the government may also be part of the oversight process.
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: 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: $28,900,678
Exercised Options: $28,900,678
Current Obligation: $28,900,678
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $371,268
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
Start Date: 2023-01-13
Current End Date: 2026-06-12
Potential End Date: 2026-06-12 00:00:00
Last Modified: 2026-04-15
More Contracts from Northrop Grumman Systems Corp
- Ground-Based Strategic Deterrent (gbsd) Engineering and Manufacturing Development (EMD) and Early Production and Deployment (P&D) — $11.7B (Department of Defense)
- Acat 1D B-2 Dms-M EMD — $863.7M (Department of Defense)
- 200411!000088!5700!GU22 !asc/Ysk !F3365799D0028 !A!N! !N!0023 ! !20040827!20081230!362686958!008255408!016435559!n!northrop Grumman Systems Corpo!3520 East Avenue M !palmdale !ca!93550!55156!037!06!palmdale !LOS Angeles !california!+000000400000!n!n!000000000000!ac65!rdte/Electronics&communication Eq-Eng/Manuf DEV !a1c!other Aircraft Equipment !376 !B-2 RMP !336411!E! !5!B!S! ! ! !99990909!B! ! !n!z!d!n!r!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! !Y! ! !0001! ! — $542.1M (Department of Defense)
- Acat 1, B2 UCA for DMS TD Phase 2 — $536.3M (Department of Defense)
- Enhanced Polar System Recapitalization - TWO Payloads (P6&P7) — $472.1M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)