DoD's $54.8M B-2 Contractor Logistics Support Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $54,822,721 ($54.8M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2016-02-26
End Date: 2017-09-30
Contract Duration: 582 days
Daily Burn Rate: $94.2K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF CY16 B-2 CONTRACTOR LOGISTICS SUPPORT (CLS)
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $54.8 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: IGF::OT::IGF CY16 B-2 CONTRACTOR LOGISTICS SUPPORT (CLS) Key points: 1. Significant contract value for specialized aircraft support. 2. Sole-source award raises questions about competition and pricing. 3. Long-term support contract indicates ongoing need for B-2 sustainment. 4. Focus on a single prime contractor for critical logistics.
Value Assessment
Rating: questionable
The contract value of $54.8M for a 1.5-year period is substantial. Without competitive benchmarking, it's difficult to assess if this price is optimal compared to similar long-term sustainment contracts for complex aircraft systems.
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 potentially leads to higher costs for taxpayers as there was no market pressure to drive down the price.
Taxpayer Impact: The lack of competition may result in the government paying a premium for these logistics services, impacting overall taxpayer value.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports high-skilled jobs in aerospace and defense logistics. Potential for cost overruns due to sole-source nature.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost creep
Positive Signals
- Ensures critical system sustainment
- Long-term support established
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on the sustainment of a major strategic asset. Spending benchmarks for similar sole-source logistics support contracts for advanced aircraft are often high due to specialized knowledge and infrastructure requirements.
Small Business Impact
The data indicates this contract was awarded to Northrop Grumman Systems Corp, a large prime contractor. There is no indication of small business participation in this specific award, which is common for large, sole-source sustainment contracts.
Oversight & Accountability
Oversight is crucial for sole-source contracts to ensure fair pricing and prevent cost overruns. Regular reviews of performance and costs by the Department of the Air Force are necessary to maintain accountability.
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 without competitive pressure.
- Lack of transparency in pricing justification.
- Dependency on a single contractor for critical support.
Tags
aircraft-manufacturing, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.8 million to NORTHROP GRUMMAN SYSTEMS CORP. IGF::OT::IGF CY16 B-2 CONTRACTOR LOGISTICS SUPPORT (CLS)
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 $54.8 million.
What is the period of performance?
Start: 2016-02-26. End: 2017-09-30.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for seamless integration with existing systems, making competition impractical or detrimental to mission effectiveness. For the B-2 CLS, it likely relates to Northrop Grumman's unique knowledge and historical involvement with the platform, ensuring continuity and specialized expertise.
How does the government ensure fair and reasonable pricing for sole-source contracts like this one?
The government employs several methods to ensure fair and reasonable pricing, including conducting cost and price analyses, reviewing contractor's cost proposals, and using historical pricing data. For sole-source awards, agencies often rely on certified cost or pricing data and may engage in detailed negotiations to validate the proposed costs against independent government estimates.
What are the long-term implications for the B-2 program's sustainment and cost-effectiveness given this contract structure?
The long-term implications depend on effective oversight and potential future competition. While this sole-source contract ensures immediate sustainment, it could lead to higher long-term costs if not managed diligently. Future strategies might involve breaking down support into smaller, more competitive packages or developing organic government capabilities to mitigate reliance on a single contractor.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
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: $71,030,755
Exercised Options: $71,030,755
Current Obligation: $54,822,721
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $1,460,864
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA861614D6060
IDV Type: IDC
Timeline
Start Date: 2016-02-26
Current End Date: 2017-09-30
Potential End Date: 2017-09-30 00:00:00
Last Modified: 2022-06-01
More Contracts from Northrop Grumman Systems Corp
- Ground-Based Strategic Deterrent (gbsd) Engineering and Manufacturing Development (EMD) and Early Production and Deployment (P&D) — $11.7B (Department of Defense)
- Acat 1D B-2 Dms-M EMD — $863.7M (Department of Defense)
- 200411!000088!5700!GU22 !asc/Ysk !F3365799D0028 !A!N! !N!0023 ! !20040827!20081230!362686958!008255408!016435559!n!northrop Grumman Systems Corpo!3520 East Avenue M !palmdale !ca!93550!55156!037!06!palmdale !LOS Angeles !california!+000000400000!n!n!000000000000!ac65!rdte/Electronics&communication Eq-Eng/Manuf DEV !a1c!other Aircraft Equipment !376 !B-2 RMP !336411!E! !5!B!S! ! ! !99990909!B! ! !n!z!d!n!r!1!001!n!1a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!d!n! ! ! !Y! ! !0001! ! — $542.1M (Department of Defense)
- Acat 1, B2 UCA for DMS TD Phase 2 — $536.3M (Department of Defense)
- Enhanced Polar System Recapitalization - TWO Payloads (P6&P7) — $472.1M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)