DoD awards $46M to Northrop Grumman for B-2 Aircraft Rudder and Elevon components
Contract Overview
Contract Amount: $46,029,774 ($46.0M)
Contractor: Northrop Grumman Systems Corporation
Awarding Agency: Department of Defense
Start Date: 2022-12-29
End Date: 2028-11-30
Contract Duration: 2,163 days
Daily Burn Rate: $21.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AIRCRAFT RUDDER AND AIRCRAFT ELEVON FOR THE B-2 AIRCRAFT
Place of Performance
Location: BEAVERCREEK, GREENE County, OHIO, 45430
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $46.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION for work described as: AIRCRAFT RUDDER AND AIRCRAFT ELEVON FOR THE B-2 AIRCRAFT Key points: 1. Significant contract value for specialized aircraft parts. 2. Sole-source award to Northrop Grumman, raising competition concerns. 3. Long contract duration (2028) suggests ongoing sustainment needs. 4. Focus on critical B-2 bomber components highlights national security implications.
Value Assessment
Rating: questionable
The contract value of $46M over approximately 6 years for specialized aircraft parts appears high, especially given the lack of competition. Benchmarking against similar sole-source sustainment contracts for legacy aircraft would be necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Northrop Grumman. The lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition for critical aircraft parts may result in inflated prices, directly impacting taxpayer funds allocated to defense.
Public Impact
Ensures continued operational readiness of the B-2 bomber fleet. Supports a critical component of U.S. strategic air power. Potential for increased costs due to sole-source nature. Highlights reliance on a single contractor for essential parts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
Positive Signals
- Ensures critical component availability
- Supports national security
Sector Analysis
This contract falls within the aerospace and defense manufacturing sector, specifically focusing on aircraft parts. Spending in this area is often characterized by high R&D costs, long product lifecycles, and significant government oversight due to national security implications.
Small Business Impact
The contract was awarded to Northrop Grumman Systems Corporation, a large business. There is no indication of subcontracting opportunities for small businesses in the provided data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential cost overruns. The Defense Logistics Agency should monitor contract performance and explore future competitive opportunities where feasible.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Potential for cost overruns due to lack of competition.
- Long contract duration increases exposure to price changes.
- Reliance on a single supplier for critical components.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, oh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.0 million to NORTHROP GRUMMAN SYSTEMS CORPORATION. AIRCRAFT RUDDER AND AIRCRAFT ELEVON FOR THE B-2 AIRCRAFT
Who is the contractor on this award?
The obligated recipient is NORTHROP GRUMMAN SYSTEMS CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $46.0 million.
What is the period of performance?
Start: 2022-12-29. End: 2028-11-30.
What is the justification for the sole-source award, and have alternatives been considered?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or the unavailability of other sources. For critical components like those for the B-2, the original manufacturer often holds exclusive rights. However, agencies should rigorously document the rationale and explore if any aspects could be opened to competition in the future, perhaps through component-level sourcing or alternative designs.
How does the per-unit cost of these components compare to historical data or similar aircraft sustainment contracts?
Without specific per-unit cost data or access to historical benchmarks for similar legacy aircraft sustainment, a direct comparison is difficult. Given the sole-source nature and the specialized B-2 platform, costs are likely to be higher than if competition were present. A thorough review of internal cost data and industry benchmarks for comparable sole-source sustainment contracts is crucial for validation.
What is the long-term strategy for ensuring the availability and affordability of these critical B-2 components?
The long-term strategy should involve proactive planning for the B-2's sustainment lifecycle. This includes exploring opportunities for competitive sourcing of sub-components, investigating potential technology refreshers that might allow for broader supplier bases, and engaging in strategic partnerships with Northrop Grumman to manage costs effectively over the remaining service life of the aircraft.
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
Solicitation ID: SPRTA120R0107
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 6401 S AIR DEPOT BLVD, OKLAHOMA CITY, OK, 73135
Business Categories: Category Business, Corporate Entity Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,029,774
Exercised Options: $46,029,774
Current Obligation: $46,029,774
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $28,046,050
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-12-29
Current End Date: 2028-11-30
Potential End Date: 2028-11-30 00:00:00
Last Modified: 2025-12-05
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