Defense contractor Northrop Grumman is seeking additional funding from the Pentagon to cover the effects of inflation and economic pressures caused by the pandemic when finalizing a deal for the next batch of B-21 bomber aircraft. The CEO of Northrop Grumman, Kathy Warden, revealed that the company is taking steps to mitigate potential losses of up to $1.2 billion from the B-21 production over the next decade. Congress has allocated $1 billion to address inflationary issues, but the distribution method is yet to be determined. Boeing is also seeking relief from inflation and pandemic-related losses for the construction of two Air Force One aircraft.
Key Points:
- Northrop Grumman is seeking additional funding from the Pentagon to compensate for inflation and pandemic-related economic pressures in the production of B-21 bomber aircraft.
- CEO Kathy Warden stated that the company is implementing measures to minimize the potential losses of up to $1.2 billion from building the B-21 over the next decade.
- Congress has allocated $1 billion to address inflationary issues in defense contracts, but the distribution process is still undecided.
- Boeing is also seeking relief for high inflation and pandemic-related losses in the construction of Air Force One aircraft.
- Both Northrop Grumman and Boeing are engaging with the government to address the financial impacts of inflation and economic pressures.
Source: https://www.defenseone.com/business/2023/06/defense-business-brief-june-05-2023/387157/
