DoD's $75M B-2 Program Depot Maintenance contract awarded to Northrop Grumman without competition

Contract Overview

Contract Amount: $75,199,189 ($75.2M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2000-11-17

End Date: 2003-07-30

Contract Duration: 985 days

Daily Burn Rate: $76.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROGRAM DEPOT MAINTENANCE (DPM) ON THE B-2

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $75.2 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: PROGRAM DEPOT MAINTENANCE (DPM) ON THE B-2 Key points: 1. High contract value ($75.2M) for specialized aircraft maintenance. 2. Sole-source award to Northrop Grumman, the prime contractor for the B-2. 3. Potential risk of inflated costs due to lack of competition. 4. IT sector is not applicable; this is Defense sector spending.

Value Assessment

Rating: questionable

The contract value of $75.2 million for B-2 depot maintenance is significant. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar specialized aircraft maintenance services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, awarded directly to Northrop Grumman Systems Corp. This approach limits price discovery and may lead to higher costs for taxpayers as there is no market pressure to reduce prices.

Taxpayer Impact: Taxpayer funds are used for this contract. The lack of competition raises concerns about the efficiency and cost-effectiveness of this significant expenditure.

Public Impact

Ensures continued operational readiness of the B-2 bomber fleet. Supports specialized jobs in aircraft maintenance and engineering. Potential for higher costs due to sole-source award impacts taxpayer value.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
High contract value

Positive Signals

Ensures critical maintenance for a key defense asset
Supports incumbent contractor expertise

Sector Analysis

This contract falls within the Defense sector, specifically focusing on aircraft maintenance. Benchmarks for depot maintenance on complex, high-value aircraft are difficult to establish due to the unique nature of such platforms and limited providers.

Small Business Impact

This contract was awarded to Northrop Grumman Systems Corp, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data, suggesting limited direct impact.

Oversight & Accountability

The Department of the Air Force awarded this contract. Oversight would focus on ensuring the quality of maintenance performed and adherence to the firm fixed price terms, especially given the sole-source nature.

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 without competitive pressure.
Lack of transparency in pricing justification.
High contract value warrants close scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $75.2 million to NORTHROP GRUMMAN SYSTEMS CORP. PROGRAM DEPOT MAINTENANCE (DPM) ON THE B-2

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 $75.2 million.

What is the period of performance?

Start: 2000-11-17. End: 2003-07-30.

What is the justification for the sole-source award of this significant depot maintenance contract?

The justification for a sole-source award typically stems from the unique capabilities or proprietary knowledge held by the incumbent contractor, in this case, Northrop Grumman, as the original manufacturer of the B-2. This ensures specialized expertise is maintained for critical systems, though it necessitates careful oversight to ensure fair pricing.

What are the risks associated with awarding a large maintenance contract without competition?

The primary risk is the potential for inflated costs due to the absence of market competition. Without competing bids, the contractor may not be incentivized to offer the lowest possible price. This can lead to inefficient use of taxpayer funds and a lack of transparency in pricing.

How does this contract contribute to the overall effectiveness of the B-2 program?

This contract is crucial for maintaining the operational readiness and longevity of the B-2 bomber fleet. Regular and specialized depot maintenance ensures the aircraft's complex systems remain functional and safe, directly contributing to the Air Force's strategic capabilities and national security.

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: FIRM FIXED PRICE (J)

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: $75,799,189

Exercised Options: $75,799,189

Current Obligation: $75,199,189

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3365799D0028

IDV Type: IDC

Timeline