DoD's B-2 PBL SE Sustaining Engineering contract awarded to Northrop Grumman for $33.7M
Contract Overview
Contract Amount: $33,676,608 ($33.7M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2013-01-01
End Date: 2018-06-28
Contract Duration: 2,004 days
Daily Burn Rate: $16.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CY13 B-2 PERFORMANCE BASED LOGISTICS (PBL) SUSTAINING ENGINEERING (SE) SUSTAINMENT
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $33.7 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: CY13 B-2 PERFORMANCE BASED LOGISTICS (PBL) SUSTAINING ENGINEERING (SE) SUSTAINMENT Key points: 1. Contract awarded to a single, large business prime contractor. 2. Performance-based logistics (PBL) aims to improve readiness and reduce costs. 3. Sustaining engineering is critical for maintaining complex aircraft systems. 4. The contract is for a significant duration, spanning over 5 years.
Value Assessment
Rating: fair
The contract value of $33.7M over 5 years averages around $6.7M annually. Benchmarking against similar sustaining engineering contracts for large defense platforms is difficult without more specific cost breakdowns, but the duration and scope suggest a potentially fair price if performance objectives are met.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. Without competition, the government relies heavily on negotiation and oversight to ensure fair pricing and value. The lack of competitive bidding may limit price discovery and potentially lead to higher costs.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not benefit from the cost savings typically achieved through competitive bidding processes.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports critical maintenance and engineering for a high-value defense asset. Potential for long-term cost efficiencies through performance-based incentives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing.
- Lack of competition may reduce incentive for cost optimization.
- Long contract duration requires sustained oversight.
Positive Signals
- Performance-based logistics aims for improved outcomes.
- Sustaining engineering is vital for platform longevity.
- Contract supports a critical national defense asset.
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending on sustaining engineering for major defense platforms is substantial, often involving long-term contracts with prime system integrators due to the complexity and specialized knowledge required.
Small Business Impact
The contract was awarded to a large business prime contractor, Northrop Grumman Systems Corp. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. The long duration necessitates continuous oversight to ensure value and adherence to terms.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award
- Lack of competition
- Long contract duration
- Potential for cost creep without strong oversight
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 $33.7 million to NORTHROP GRUMMAN SYSTEMS CORP. CY13 B-2 PERFORMANCE BASED LOGISTICS (PBL) SUSTAINING ENGINEERING (SE) SUSTAINMENT
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $33.7 million.
What is the period of performance?
Start: 2013-01-01. End: 2018-06-28.
What specific performance metrics are included in this PBL contract, and how are they measured to ensure value for money?
The provided data does not detail the specific performance metrics for this PBL contract. Typically, PBL contracts include metrics related to system availability, reliability, maintainability, and response times. Effective oversight would involve rigorous tracking of these metrics against pre-defined targets to ensure Northrop Grumman is meeting its obligations and delivering value, justifying the sole-source award.
Given the sole-source nature, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing over the contract's duration?
As a sole-source award, risk mitigation relies heavily on robust negotiation, cost analysis, and ongoing oversight. The government likely employs techniques such as should-cost analysis, should-cost management, and regular audits. Performance incentives within the PBL framework can also encourage cost efficiency, but continuous vigilance by the contracting agency is crucial to prevent potential cost escalations.
How does this sustaining engineering contract contribute to the overall readiness and operational effectiveness of the B-2 fleet?
This contract is fundamental to maintaining the B-2 bomber's operational readiness by ensuring the availability of critical engineering support and parts. Sustaining engineering addresses obsolescence, implements upgrades, and resolves technical issues, directly impacting the fleet's ability to perform its mission. The performance-based nature aims to incentivize proactive maintenance and rapid problem resolution, thereby enhancing overall effectiveness.
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: 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: $33,676,608
Exercised Options: $33,676,608
Current Obligation: $33,676,608
Subaward Activity
Number of Subawards: 50
Total Subaward Amount: $16,845,502
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: F3365799D0028
IDV Type: IDC
Timeline
Start Date: 2013-01-01
Current End Date: 2018-06-28
Potential End Date: 2018-06-28 00:00:00
Last Modified: 2018-10-26
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