Northrop Grumman Awarded $12.5M for B-2 Stealth Aircraft Components by Air Force

Contract Overview

Contract Amount: $12,537,159 ($12.5M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2002-01-24

End Date: 2002-12-31

Contract Duration: 341 days

Daily Burn Rate: $36.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200204!000054!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N! !N!SD17 !20020124!20021231!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55156!037!06!PALMDALE !LOS ANGELES !CALIFORNIA!+000017700000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !3ABK!B-2 STEALTH !336413!E! !5!B!S! ! !D!20021231!B! ! !N!Z!D!U!J!1!001!N!1G!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.5 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: 200204!000054!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N! !N!SD17 !20020124!20021231!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55156!037!06!PALMDALE !LOS A… Key points: 1. Contract awarded to Northrop Grumman Systems Corp for aircraft components. 2. Significant portion of spending allocated to B-2 Stealth program. 3. High value contract, but limited competition details available. 4. Sector focus on Aircraft Manufacturing within Defense.

Value Assessment

Rating: good

The contract value of $12.5M appears reasonable for specialized aircraft components, particularly for a high-value program like the B-2. Benchmarking against similar sole-source or limited-competition contracts for advanced aerospace systems would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited-source award. This approach may be justified for specialized components tied to existing platforms like the B-2, but it limits price discovery and potentially increases costs for the government.

Taxpayer Impact: The lack of competition could lead to higher prices than a fully competed contract, impacting taxpayer value. However, the specialized nature of the components might necessitate this approach.

Public Impact

Supports the continued operation and maintenance of the B-2 bomber fleet. Ensures availability of critical aircraft parts for national defense. Potential for job creation and economic activity in California. Highlights reliance on a single contractor for specialized defense components.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for cost overruns due to sole-source nature

Positive Signals

Supports critical defense platform
Award to established defense contractor

Sector Analysis

This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending in this area is crucial for maintaining military readiness and technological superiority. Benchmarks for similar specialized component contracts are often high due to R&D and manufacturing complexity.

Small Business Impact

The awardee is Northrop Grumman Systems Corp, a large defense contractor. There is no indication of small business participation in this specific contract based on the provided data.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle. Oversight would typically involve the Department of the Air Force ensuring performance and adherence to terms. The sole-source nature warrants careful monitoring of costs and necessity.

Related Government Programs

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

Risk Flags

Sole-source award limits competition
Potential for higher costs without competitive bidding
Reliance on a single contractor for critical components
Lack of transparency in pricing justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.5 million to NORTHROP GRUMMAN SYSTEMS CORP. 200204!000054!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N! !N!SD17 !20020124!20021231!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55156!037!06!PALMDALE !LOS ANGELES !CALIFORNIA!+000017700000!N!N!000000000000!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A1C!OTHER AIRCRAFT EQUIPMENT !3ABK!B-2 STEALTH !336413!E! !5!B!S! ! !D!20021231!B

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 $12.5 million.

What is the period of performance?

Start: 2002-01-24. End: 2002-12-31.

What is the justification for the sole-source award, and were alternative sourcing options explored?

The justification for a sole-source award typically centers on the unique capabilities of the contractor, proprietary technology, or the need for compatibility with existing systems. For specialized aircraft components, especially for advanced platforms like the B-2, Northrop Grumman may possess unique manufacturing processes or intellectual property. Agencies are generally required to explore alternative sourcing, but if none are feasible or cost-effective, a sole-source award can be justified.

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

Without specific unit cost data and comparable parts, a direct comparison is difficult. However, components for highly specialized and technologically advanced aircraft like the B-2 are inherently more expensive due to complex design, materials, and manufacturing processes. The 'firm fixed price' contract type suggests an attempt to control costs, but the lack of competition means the government relies on Northrop Grumman's pricing without competitive pressure.

What is the long-term strategy for ensuring competitive sourcing for critical B-2 components in the future?

The long-term strategy for ensuring competitive sourcing of critical B-2 components would involve proactive market research, fostering potential new entrants or second-source suppliers, and potentially investing in technology transfer or licensing agreements. The Air Force might also consider developing standardized components or modular designs that allow for broader competition. However, given the age and specialized nature of the B-2, future competition may remain limited.

Industry Classification

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

Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES

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

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: F3365799D0028

IDV Type: IDC

Timeline