DoD Awards Northrop Grumman $45.6M for B-2 Stealth Aircraft Components

Contract Overview

Contract Amount: $45,643,483 ($45.6M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2000-09-29

End Date: 2005-12-31

Contract Duration: 1,919 days

Daily Burn Rate: $23.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: 200012!5700!000472!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!*!SD0211 !20000929!20001231!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS ANGELES !CALIFORNIA!0001!+000000100000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !3ABK!B-2 STEALTH !3728!5!B!S!C!B!N!Z!C !U!Y!1!001!N!1G!A!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.6 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: 200012!5700!000472!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!*!SD0211 !20000929!20001231!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS… Key points: 1. Significant contract value for specialized aircraft components. 2. Northrop Grumman is a major defense contractor, indicating potential market concentration. 3. Risk of sole-source procurement impacting price discovery and taxpayer value. 4. Sector: Defense (Aircraft Manufacturing) - high-tech, high-cost industry.

Value Assessment

Rating: fair

The contract value of $45.6 million for B-2 stealth aircraft components appears substantial. Benchmarking against similar specialized defense contracts is difficult without more granular data on the specific components and services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and may result in higher costs for taxpayers as there was no competitive pressure to drive down prices.

Taxpayer Impact: The lack of competition raises concerns about whether the government achieved the best possible price for these critical aircraft components.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. Reliance on a single contractor for B-2 stealth components could create supply chain vulnerabilities. The high cost of advanced defense systems like the B-2 bomber is further amplified by non-competitive contract awards.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
High contract value for specialized defense item

Positive Signals

Award to established defense contractor
Contract supports critical national defense asset (B-2)

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this sector is characterized by high R&D costs, long production cycles, and significant government oversight due to national security implications.

Small Business Impact

The awardee, Northrop Grumman, is a large corporation, not a small business. There is no indication in the data that small businesses were involved as subcontractors on this specific delivery order.

Oversight & Accountability

Given the sole-source nature and significant value, robust oversight is crucial to ensure the government is receiving fair value and that contract terms are being met. The contracting agency is the Department of the Air Force.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competitive pressure.
High reliance on a single contractor for critical components.
Lack of transparency regarding specific components and justification for sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 million to NORTHROP GRUMMAN SYSTEMS CORP. 200012!5700!000472!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!*!SD0211 !20000929!20001231!065390122!008255408!008255408!N!76823!NORTHROP GRUMMAN CORPORATION !8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS ANGELES !CALIFORNIA!0001!+000000100000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !3ABK!B-2 STEALTH !3728!5!B!S!C!B!N!Z!C !U!Y!

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 $45.6 million.

What is the period of performance?

Start: 2000-09-29. End: 2005-12-31.

What specific aircraft components were procured under this contract, and what is their criticality to the B-2 program?

The data indicates the procurement is for 'MSL AIRCRAFT ACCESSORIES AND COMPONENTS' related to the 'B-2 STEALTH' program. These are likely specialized parts essential for the operational readiness and maintenance of the B-2 bomber, a highly advanced and sensitive military asset. Understanding the exact nature of these components would clarify their importance and the potential challenges in finding alternative suppliers.

What justification was provided for awarding this contract on a sole-source basis instead of through full and open competition?

Sole-source awards typically require a strong justification, such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without this justification, the lack of competition raises concerns about potential overpricing and missed opportunities for cost savings through a competitive bidding process.

How does the per-unit cost or total contract value compare to similar procurements for B-2 components or other advanced aircraft parts?

Benchmarking this $45.6 million contract is challenging without more specific details on the items procured. However, given the B-2's advanced technology and the specialized nature of its components, costs are expected to be high. A lack of competitive bidding makes it difficult to assess if this value represents a fair market price or if it is inflated due to the absence of competing offers.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 3520 E AVE M, PALMDALE, CA, 93550

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: F3365799D0028

IDV Type: IDC

Timeline