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: 

1. 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.
2. 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.
3. Congress has allocated $1 billion to address inflationary issues in defense contracts, but the distribution process is still undecided.
4. Boeing is also seeking relief for high inflation and pandemic-related losses in the construction of Air Force One aircraft.
5. 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/