Northrop Grumman Awarded $45M for B-2 Stealth Aircraft Components

Contract Overview

Contract Amount: $44,994,421 ($45.0M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2001-02-05

End Date: 2007-12-31

Contract Duration: 2,520 days

Daily Burn Rate: $17.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: 200105!000059!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N!*!N!SD09 !20010205!20011231!065390122!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS ANGELES !CALIFORNIA!+000002800000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !3ABK!B-2 STEALTH !336413!*!*!5!B!S!C!*!*!*!B!*!*!N!Z!C !U!L!1!001!N!1G!A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.0 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: 200105!000059!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N!*!N!SD09 !20010205!20011231!065390122!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS A… Key points: 1. Significant contract for critical B-2 bomber components. 2. Sole-source award raises questions about competition and pricing. 3. Potential for higher costs due to lack of competitive bidding. 4. Long-term contract spanning over 7 years.

Value Assessment

Rating: questionable

The contract value of $45M for aircraft components is substantial. Without competitive benchmarks or detailed cost breakdowns, assessing its value is difficult. The fixed-price incentive structure suggests an attempt to control costs, but the lack of competition is a primary concern.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating no other vendors were considered. This significantly limits price discovery and may lead to inflated costs for taxpayers, as there was no competitive pressure to drive down the price.

Taxpayer Impact: The sole-source nature of this award means taxpayers may be paying a premium for these aircraft components, as competition was not leveraged to secure the best possible price.

Public Impact

Impacts the operational readiness and maintenance of the B-2 stealth bomber fleet. Ensures continued support for a key strategic defense asset. Potential for increased defense spending without demonstrated cost savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Long contract duration
Fixed-price incentive contract type

Positive Signals

Supports critical defense asset
Experienced contractor
Long-term sustainment

Sector Analysis

This contract falls within the Defense sector, specifically aircraft manufacturing and components. Spending in this area is often characterized by high complexity, long lead times, and significant R&D investment. Benchmarks are difficult to establish due to the specialized nature of defense systems like the B-2.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went to a large corporation, Northrop Grumman Systems Corp.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the government is receiving fair value. Robust auditing and performance monitoring are crucial to hold the contractor accountable for meeting contract requirements and managing costs effectively.

Related Government Programs

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

Risk Flags

Sole-source award limits price competition.
Potential for cost overruns due to incentive structure.
Long contract duration increases long-term financial commitment.
Lack of transparency in pricing justification.
Dependence on a single contractor for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.0 million to NORTHROP GRUMMAN SYSTEMS CORP. 200105!000059!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N!*!N!SD09 !20010205!20011231!065390122!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!8900 WASHINGTON BLVD !PICO RIVERA !CA!90660!56924!037!06!PICO RIVERA !LOS ANGELES !CALIFORNIA!+000002800000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !3ABK!B-2 STEALTH !336413!*!*!5!B!S!C!*!*!*!B!*!*!N!

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 $45.0 million.

What is the period of performance?

Start: 2001-02-05. End: 2007-12-31.

What specific justification was provided for the sole-source award, and were alternative solutions or vendors ever considered?

The data indicates a 'NOT COMPETED' status, suggesting a sole-source justification was applied. Typically, this requires demonstrating that only one responsible source can provide the required supplies or services. Without further documentation, it's unclear if thorough market research was conducted to ensure no other viable options existed, potentially impacting the government's ability to secure competitive pricing.

How does the unit cost of these B-2 components compare to similar components for other advanced aircraft programs?

Direct comparison is challenging due to the unique and highly specialized nature of B-2 stealth technology. However, the absence of competition for such a critical system raises concerns that the unit costs may be higher than they would be in a competitive environment. A detailed cost analysis by the government would be necessary to establish a true benchmark.

What mechanisms are in place to ensure the effectiveness and quality of the aircraft components delivered under this fixed-price incentive contract?

The fixed-price incentive (FPI) contract type aims to share cost savings or overruns between the government and the contractor. Effectiveness and quality are typically ensured through stringent government inspection, acceptance criteria, and performance metrics outlined in the contract. The government's oversight team plays a crucial role in monitoring production and ensuring compliance with specifications.

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

Offers Received: 1

Pricing Type: FIXED PRICE INCENTIVE (L)

Evaluated Preference: NONE

Contractor Details

Parent Company: Titan II Inc. (UEI: 016435559)

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

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F3365799D0028

IDV Type: IDC

Timeline