Northrop Grumman Case Summary

Reference to the question of the rate increase of Labor, in view of the obligation of Northrop Grumman to ensure that services rendered on behalf of the U.S. Government are priced reasonably, it is not possible to increase the Director of Events & Program Manager beyond 39% & 38%. These offered increases are significantly more than what is normally permissible, 10-12% range, for essentially continued work. However, due to its unique nature, the new location of Lebanon, the reasoning provided by Mr. Proctor, and in pursuit of goodwill & partnership, the latter two rate escalations can be justified to the U.S. Government. What is not justifiable, and cannot be accepted, is the escalation of rates at 78% & 76% for the two positions. Regarding the Hollywood Actor, thank you for the background information, can you please forward the resumes for the four Hollywood Partners (Director / Scriptwriter / Actor)?

Northrop Grumman agrees that AAM has developed a unique level of expertise on the Incubator project and in the region. It is primarily that fact that allows Northrop Grumman to counteroffer at attractive rates, almost a 30% increase beyond what is standard (10-12%). Please keep in mind, the Incubator project began less than a year ago, 01 December 2016. In view of this brief span of a few months, it is not possible for Northrop Grumman to almost double the pay rates for the two noted positions and claim they’re now Subject Matter Experts (SMEs). A Government Auditor will not accept the reasoning and will flag the increase as