DoD Awards Northrop Grumman $148M for B-2 Stealth Aircraft Structural Component Repair

Contract Overview

Contract Amount: $14,820,986 ($14.8M)

Contractor: Northrop Grumman Systems Corp

Awarding Agency: Department of Defense

Start Date: 2002-12-20

End Date: 2010-09-30

Contract Duration: 2,841 days

Daily Burn Rate: $5.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200307!000221!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N! !N!SD28 !20021220!20031231!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55156!037!06!PALMDALE !LOS ANGELES !CALIFORNIA!+000005004274!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1C!OTHER AIRCRAFT EQUIPMENT !3ABK!B-2 STEALTH !811219!E! !5!B!S! ! ! !99990909!B! ! !N!Z!D!N!R!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.8 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: 200307!000221!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N! !N!SD28 !20021220!20031231!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 maintenance and repair of aircraft structural components. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity contract. 3. This award represents a significant portion of the total contract value, indicating critical support for the B-2 program. 4. The sector is dominated by large aerospace and defense contractors, with limited opportunities for smaller specialized firms.

Value Assessment

Rating: fair

The contract value of $148.2 million is substantial. Without specific performance metrics or a breakdown of repair costs, it's difficult to assess value for money. Benchmarking against similar repair contracts for complex aircraft is challenging due to the unique nature of the B-2.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a delivery order under a pre-existing contract, likely with limited competition. The 'NOT COMPETED' status suggests it was awarded to the incumbent or a specific provider without a broad solicitation, potentially impacting price discovery.

Taxpayer Impact: Taxpayer funds are committed to maintaining critical, high-value defense assets. The lack of full and open competition raises questions about whether the best possible price was secured.

Public Impact

Ensures continued operational readiness of the B-2 stealth bomber fleet. Supports high-tech jobs within the aerospace and defense industry, particularly in California. Highlights the long-term sustainment costs associated with advanced military platforms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about cost efficiency.
Lack of detailed performance metrics makes value assessment difficult.
Potential for cost overruns on complex, specialized repairs.

Positive Signals

Ensures critical maintenance for a key strategic asset.
Leverages established expertise of a major defense contractor.
Supports national security objectives through fleet readiness.

Sector Analysis

This contract falls within the Aircraft Manufacturing sector, specifically focusing on maintenance and repair of structural components for advanced aircraft. Spending in this area is driven by defense needs and the lifecycle management of complex military assets, often involving specialized contractors.

Small Business Impact

The prime contractor is a large corporation, Northrop Grumman. There is no explicit indication of small business subcontracting in the provided data, suggesting limited direct impact or opportunity for small businesses on this specific award.

Oversight & Accountability

As a delivery order under a larger contract, oversight likely exists within the Department of Defense's contracting and program management structures. However, the limited competition aspect warrants scrutiny to ensure accountability and fair pricing.

Related Government Programs

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

Risk Flags

Limited competition may lead to higher costs.
Lack of detailed cost breakdown hinders value assessment.
Potential for sole-source dependency.
Complexity of B-2 repairs makes oversight challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.8 million to NORTHROP GRUMMAN SYSTEMS CORP. 200307!000221!5700!GD30 !OKLAHOMA CITY ALC/LAD !F3365799D0028 !A!N! !N!SD28 !20021220!20031231!362686958!008255408!016435559!N!NORTHROP GRUMMAN SYSTEMS CORPO!3520 EAST AVENUE M !PALMDALE !CA!93550!55156!037!06!PALMDALE !LOS ANGELES !CALIFORNIA!+000005004274!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !A1C!OTHER AIRCRAFT EQUIPMENT !3ABK!B-2 STEALTH !811219!E! !5!B!S! ! ! !99990909!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 $14.8 million.

What is the period of performance?

Start: 2002-12-20. End: 2010-09-30.

What is the specific breakdown of repair costs versus labor and materials to better assess value for money?

A detailed breakdown of costs is essential for a thorough value assessment. Without it, it's challenging to determine if the $148.2 million reflects fair pricing for the labor, materials, and overhead involved in repairing complex B-2 structural components. Benchmarking against similar, albeit less specialized, aircraft structural repair contracts could provide some context, but the unique nature of the B-2 limits direct comparisons.

What are the risks associated with relying on a single source or limited competition for critical aircraft structural repairs?

Relying on limited competition for critical repairs poses risks such as inflated pricing due to lack of competitive pressure, potential complacency in service quality, and vulnerability if the sole provider faces operational issues. It also limits opportunities for innovative solutions or cost-saving approaches that might emerge from a broader competitive bidding process.

How effectively does this contract ensure the long-term operational readiness and cost-efficiency of the B-2 fleet?

The contract's effectiveness in ensuring long-term readiness is positive, as it addresses critical maintenance needs. However, cost-efficiency is questionable due to limited competition. Without performance metrics tied to readiness rates and cost controls, it's difficult to definitively gauge the overall cost-effectiveness of this approach over the B-2's lifecycle.

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: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Huntington Ingalls Industries, Inc (UEI: 967362331)

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