DoD Spends $37.6M on B-2 Aircraft Structural Supports, Sole-Sourced to Northrop Grumman
Contract Overview
Contract Amount: $37,618,273 ($37.6M)
Contractor: Northrop Grumman Systems Corp
Awarding Agency: Department of Defense
Start Date: 2013-09-27
End Date: 2021-08-31
Contract Duration: 2,895 days
Daily Burn Rate: $13.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MANUFACTURE OF B-2 AIRCRAFT STRUCTURAL SUPPORTS
Place of Performance
Location: PALMDALE, LOS ANGELES County, CALIFORNIA, 93550
Plain-Language Summary
Department of Defense obligated $37.6 million to NORTHROP GRUMMAN SYSTEMS CORP for work described as: MANUFACTURE OF B-2 AIRCRAFT STRUCTURAL SUPPORTS Key points: 1. Significant expenditure on a specialized defense component. 2. Sole-source award to Northrop Grumman raises competition concerns. 3. Long contract duration (2013-2021) suggests sustained need. 4. High value contract for a niche manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $37.6M for B-2 aircraft structural supports is difficult to assess without specific unit cost data. Given the specialized nature and sole-source award, it's challenging to benchmark against similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, indicating a lack of competitive bidding. This method limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for this significant contract likely results in a higher cost to taxpayers than a competitively awarded contract would have achieved.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports a critical, high-tech manufacturing capability within the defense industrial base. Potential for cost overruns due to lack of competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Critical defense component
- Supports advanced manufacturing
Sector Analysis
This contract falls within the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this niche area is driven by specific defense program needs, with limited civilian market parallels.
Small Business Impact
The 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 major defense manufacturing contracts.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid was fair and reasonable, despite the lack of competition.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competition.
- Long contract duration may mask inefficiencies.
- Lack of transparency in pricing without competitive bids.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, ca, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.6 million to NORTHROP GRUMMAN SYSTEMS CORP. MANUFACTURE OF B-2 AIRCRAFT STRUCTURAL SUPPORTS
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 Logistics Agency).
What is the total obligated amount?
The obligated amount is $37.6 million.
What is the period of performance?
Start: 2013-09-27. End: 2021-08-31.
What is the justification for the sole-source award, and were alternatives explored?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or essential integration with existing systems. For the B-2 program, Northrop Grumman's established role and expertise likely formed the basis. However, a thorough review would confirm if any competitive avenues, even for specific components or manufacturing processes, were overlooked or deemed infeasible.
How does the unit cost compare to historical data or similar components for other aircraft?
Without specific unit cost breakdowns or access to proprietary data, a direct comparison is challenging. However, the lack of competition inherently raises concerns about potential price inflation compared to what might be achieved through a competitive bidding process. Historical data for the B-2 program itself might offer some context, but external benchmarks are difficult to establish for such specialized parts.
What is the long-term strategy for ensuring cost-effective procurement of these structural supports?
The long-term strategy should involve exploring options to introduce competition where feasible, perhaps through component-level sourcing or by encouraging alternative manufacturing processes. If sole-sourcing remains necessary, robust cost-reimbursement controls, performance metrics, and regular price negotiations are crucial to mitigate risks and ensure value for taxpayer dollars.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS
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
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: $37,618,273
Exercised Options: $37,618,273
Current Obligation: $37,618,273
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $227,651,865
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2013-09-27
Current End Date: 2021-08-31
Potential End Date: 2021-08-31 00:00:00
Last Modified: 2022-04-02
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