DoD's $48.6M B-2 Software Maintenance Contract Awarded to Northrop Grumman
Contract Overview
Contract Amount: $48,590,888 ($48.6M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2012-01-01
End Date: 2016-01-25
Contract Duration: 1,485 days
Daily Burn Rate: $32.7K/day
Competition Type: NOT COMPETED
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CY12 B-2 PBL SUSTAINMENT DELIVERY ORDER FOR SOFTWARE MAINTENANCE
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $48.6 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: CY12 B-2 PBL SUSTAINMENT DELIVERY ORDER FOR SOFTWARE MAINTENANCE Key points: 1. Significant spending on sustainment for a major defense platform. 2. Sole-source award raises questions about price discovery and competition. 3. Long-term contract duration (4 years) for software maintenance. 4. High value contract within the Aircraft Manufacturing sector.
Value Assessment
Rating: questionable
The contract's value of $48.6M for software maintenance over four years is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar sustainment services.
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 in this sole-source award may result in higher costs for taxpayers compared to a competitively bid contract.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports critical software updates and maintenance for advanced avionics. Impacts the defense industrial base and reliance on a single prime contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for cost overruns
Positive Signals
- Ensures critical system sustainment
- Supports national security objectives
Sector Analysis
This contract falls within the Defense sector, specifically Aircraft Manufacturing. Spending on sustainment and maintenance for major defense platforms like the B-2 is common, but the value and duration warrant scrutiny.
Small Business Impact
This contract was awarded to Northrop Grumman Systems Corp, a large prime contractor. There is no indication of small business participation in this specific delivery order, which is typical for sole-source sustainment contracts.
Oversight & Accountability
The Department of the Air Force awarded this contract. Oversight would focus on ensuring Northrop Grumman meets the terms of the cost-plus-fixed-fee agreement and delivers the required software maintenance services effectively.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive pricing
- Potential for cost creep
- Long-term dependency on one vendor
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 $48.6 million to NORTHROP GRUMMAN SYSTEMS CORP. CY12 B-2 PBL SUSTAINMENT DELIVERY ORDER FOR SOFTWARE MAINTENANCE
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 $48.6 million.
What is the period of performance?
Start: 2012-01-01. End: 2016-01-25.
What is the justification for the sole-source award of this software maintenance contract?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the need for continuity of essential services where only one contractor can provide the required support. For the B-2 bomber, Northrop Grumman, as the prime contractor, likely possesses the specialized knowledge and access required for its software maintenance, making competition impractical or detrimental to operational readiness.
What are the risks associated with a sole-source contract for long-term sustainment?
Sole-source contracts carry inherent risks, including higher costs due to the absence of competitive pressure, potential for contractor complacency, and a lack of innovation. For long-term sustainment, there's also a risk of vendor lock-in, making it difficult and expensive to switch providers if performance or pricing becomes unsatisfactory. This necessitates robust oversight to ensure fair pricing and performance.
How does this contract contribute to the overall effectiveness and readiness of the B-2 bomber program?
This contract is crucial for maintaining the operational effectiveness and readiness of the B-2 bomber fleet. Software maintenance ensures that the aircraft's complex avionics and mission systems are up-to-date, secure, and functioning correctly. Without this sustainment, the B-2's capabilities could degrade, impacting its ability to perform its strategic mission and compromising overall air force readiness.
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: COST PLUS FIXED FEE (U)
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: $48,590,888
Exercised Options: $48,590,888
Current Obligation: $48,590,888
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $73,644,094
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: 2012-01-01
Current End Date: 2016-01-25
Potential End Date: 2016-01-25 00:00:00
Last Modified: 2019-09-26
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