DoD's $21M B-2 Ground Test Facility Support Contract Awarded to Northrop Grumman

Contract Overview

Contract Amount: $20,979,039 ($21.0M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2015-01-01

End Date: 2019-03-29

Contract Duration: 1,548 days

Daily Burn Rate: $13.6K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF CY15 PERFORMANCE-BASED LOGISTICS (PBL) B-2 WEAPONS SYSTEM SUPPORT CENTER (WSSC) GROUND TEST FACILITY (GTF) LABORATORY SUPPORT.

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: IGF::OT::IGF CY15 PERFORMANCE-BASED LOGISTICS (PBL) B-2 WEAPONS SYSTEM SUPPORT CENTER (WSSC) GROUND TEST FACILITY (GTF) LABORATORY SUPPORT. Key points: 1. Contract awarded to a single, large aerospace company, indicating potential lack of competition. 2. Performance-based logistics (PBL) approach aims for efficiency but requires careful monitoring. 3. Long duration (over 4 years) suggests a critical, ongoing need for B-2 system support. 4. Cost-plus-fixed-fee structure may incentivize cost increases, requiring strong oversight.

Value Assessment

Rating: fair

The contract's cost-plus-fixed-fee structure, while common for complex support, can lead to higher costs compared to fixed-price contracts. Benchmarking against similar long-term aerospace support contracts is difficult without detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to the specialized nature of B-2 weapons system support and the incumbent's established expertise. The lack of competition limits price discovery and potentially increases costs for taxpayers.

Taxpayer Impact: The absence of competition for this significant contract raises concerns about whether the government secured the best possible price for these essential services.

Public Impact

Ensures continued operational readiness of the B-2 bomber fleet. Supports critical ground testing infrastructure for the advanced B-2 aircraft. Maintains specialized technical expertise within the aerospace supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost-plus-fixed-fee pricing
Long contract duration

Positive Signals

Performance-based logistics approach
Supports critical defense asset

Sector Analysis

This contract falls within the Defense sector, specifically supporting aircraft maintenance and readiness. Spending benchmarks for specialized weapons system support are highly variable, but large, sole-source contracts are common for unique platforms like the B-2.

Small Business Impact

This contract was awarded to a large prime contractor, Northrop Grumman. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The cost-plus-fixed-fee contract type necessitates robust oversight from the Department of the Air Force to manage costs and ensure performance objectives are met. Regular audits and performance reviews are crucial.

Related Government Programs

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

Risk Flags

Lack of competition
Cost-plus-fixed-fee pricing structure
Potential for cost overruns
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to NORTHROP GRUMMAN SYSTEMS CORP. IGF::OT::IGF CY15 PERFORMANCE-BASED LOGISTICS (PBL) B-2 WEAPONS SYSTEM SUPPORT CENTER (WSSC) GROUND TEST FACILITY (GTF) LABORATORY SUPPORT.

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 $21.0 million.

What is the period of performance?

Start: 2015-01-01. End: 2019-03-29.

What specific performance metrics are being tracked under this PBL contract, and how are they linked to contractor incentives?

The provided data does not detail the specific performance metrics for this PBL contract. A thorough review would require access to the contract's statement of work and performance work statement. Understanding these metrics is crucial to assessing if the performance-based approach is effectively driving desired outcomes and value for the government.

What is the justification for the sole-source award, and have alternative procurement strategies been considered?

The justification for this sole-source award is not detailed in the provided data. Typically, sole-source awards for specialized defense systems are based on unique capabilities, proprietary technology, or lack of viable alternatives. Further investigation into the contract file would be needed to confirm the specific rationale and explore if any competitive strategies were previously considered or deemed infeasible.

How does the cost-plus-fixed-fee structure compare to potential fixed-price alternatives for similar long-term support services?

Cost-plus-fixed-fee contracts generally allow for higher profit margins for the contractor and can be less risky for them, potentially leading to higher overall costs for the government compared to fixed-price contracts. While suitable for uncertain scopes, it requires diligent oversight to control costs. A comparative analysis with fixed-price contracts for comparable services would be needed to quantify the difference.

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: COST PLUS FIXED FEE (U)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,600,331

Exercised Options: $23,600,331

Current Obligation: $20,979,039

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $49,503

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA861614D6060

IDV Type: IDC

Timeline