Air Force awards $30.9M contract for flares to Kilgore Flares Company LLC, a sole Tennessee-based manufacturer

Contract Overview

Contract Amount: $30,916,157 ($30.9M)

Contractor: Kilgore Flares Company LLC

Awarding Agency: Department of Defense

Start Date: 2010-03-24

End Date: 2012-02-29

Contract Duration: 707 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MJU-39, FLARE, LA32

Place of Performance

Location: TOONE, HARDEMAN County, TENNESSEE, 38381

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to KILGORE FLARES COMPANY LLC for work described as: MJU-39, FLARE, LA32 Key points: 1. The contract value of $30.9 million for flares represents a significant investment in pyrotechnic defense capabilities. 2. Competition dynamics for this contract are limited, as Kilgore Flares Company LLC is a primary, if not sole, domestic producer. 3. Risk indicators include potential supply chain vulnerabilities due to reliance on a single manufacturer and the specialized nature of the product. 4. Performance context suggests a need for reliable flare production to support ongoing Air Force operations. 5. Sector positioning places this contract within the niche but critical defense manufacturing segment, specifically pyrotechnics.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the specialized nature of flare production and limited market comparables. The contract value of $30.9 million over approximately two years suggests a per-unit cost that needs careful examination against production efficiencies and material costs. Without more granular data on the specific types and quantities of flares procured, a definitive value-for-money assessment is difficult. However, the absence of competitive pressure could lead to less favorable pricing than in a more open market.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to participate. However, the reality of specialized defense manufacturing, particularly for items like flares, often results in a limited number of capable bidders. The specific number of bidders for this contract is not detailed, but the outcome suggests Kilgore Flares Company LLC was the most competitive or only viable option.

Taxpayer Impact: While full and open competition was advertised, the specialized nature of the product may have limited actual bids. This could mean taxpayers did not benefit from the full price discovery potential of a broader competitive landscape.

Public Impact

The primary beneficiaries are the U.S. Air Force and its operational readiness, ensuring pilots have necessary countermeasures. The services delivered include the manufacturing and supply of critical pyrotechnic flares for aircraft. The geographic impact is concentrated in Tennessee, where the contractor is based, supporting local employment and economic activity. Workforce implications include the maintenance of specialized manufacturing jobs within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential single-source reliance for critical defense components.
Limited visibility into the cost breakdown for specialized pyrotechnic manufacturing.
Geographic concentration of production could pose logistical or supply chain risks.

Positive Signals

Contract awarded through full and open competition, suggesting a structured procurement process.
Kilgore Flares Company LLC is a known entity in the defense supply chain for pyrotechnics.
The contract duration and value indicate a commitment to ensuring supply continuity.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically the niche area of pyrotechnics and countermeasures. The market for such specialized defense components is often characterized by high barriers to entry due to technical expertise, regulatory requirements, and established relationships with government agencies. Comparable spending benchmarks are difficult to establish without detailed product specifications, but the overall defense budget allocates significant resources to aviation support and survivability equipment.

Small Business Impact

There is no indication that this contract involved small business set-asides. Given the specialized nature of flare manufacturing, it is unlikely that small businesses would be primary bidders or subcontractors unless they operate within a very specific niche of the supply chain. The focus appears to be on established defense contractors with the necessary certifications and production capabilities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures would include performance metrics, delivery schedules, and quality control standards outlined in the contract. Transparency is facilitated through contract award databases, though detailed cost breakdowns and production specifics may be proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Air Force Aircraft Survivability Equipment
Pyrotechnic Devices
Defense Manufacturing Contracts
Chemical Product Manufacturing

Risk Flags

Potential single-source dependency
Limited competitive landscape
Specialized manufacturing risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to KILGORE FLARES COMPANY LLC. MJU-39, FLARE, LA32

Who is the contractor on this award?

The obligated recipient is KILGORE FLARES COMPANY LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $30.9 million.

What is the period of performance?

Start: 2010-03-24. End: 2012-02-29.

What is the specific type and quantity of flares being procured under this contract?

The provided data does not specify the exact types or quantities of flares. The contract is categorized under 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' (NAICS 325998), suggesting a range of pyrotechnic products. Flares are typically used as countermeasures against heat-seeking missiles or for signaling. Without further details, it's impossible to determine the precise mix of products or the volume ordered, which significantly impacts cost analysis and operational utility.

How does the per-unit cost of these flares compare to historical awards or industry benchmarks?

A direct per-unit cost comparison is not feasible with the given data. The contract value is $30.9 million, and the duration is 707 days. To calculate a per-unit cost, we would need the total number of units procured. Furthermore, 'flares' can encompass a wide variety of products with vastly different costs based on their complexity, materials, and intended use (e.g., infrared countermeasures, illumination flares, signaling flares). Benchmarking would require access to detailed specifications and pricing from similar, competitively awarded contracts, which are not provided here.

What is Kilgore Flares Company LLC's track record with similar defense contracts?

Kilgore Flares Company LLC has a history of supplying pyrotechnic products to the U.S. military. While specific contract details beyond this award are not provided, their existence as a manufacturer in this specialized field suggests prior experience and capability. Companies operating in defense manufacturing often undergo rigorous vetting and must meet stringent quality and performance standards. Further investigation into their contract history with DoD agencies would reveal the breadth and success of their past performance.

What are the primary risks associated with relying on a single domestic manufacturer for critical flare components?

The primary risks include supply chain disruption due to unforeseen events (e.g., natural disasters, accidents, labor issues) affecting the sole manufacturer, potential price escalation due to lack of competition, and a reduced incentive for innovation. In a national security context, dependence on a single source for critical defense matériel can create strategic vulnerabilities. The government might mitigate these risks through long-term contracts, strategic stockpiling, or by incentivizing the development of alternative domestic production capabilities.

How does this contract fit into the broader context of Air Force spending on aviation countermeasures and survivability?

This contract represents a component of the Air Force's overall investment in ensuring the survivability of its aircraft and aircrews. Aviation countermeasures, including flares, are essential for protecting platforms from threats. Spending in this area fluctuates based on threat assessments, modernization programs, and operational tempo. This $30.9 million award, while substantial for the specific item, is likely one of many contracts supporting a much larger portfolio of survivability equipment and technologies across the Air Force fleet.

What is the significance of the contract being awarded as a 'Delivery Order' under a larger contract vehicle?

The data indicates this is a 'Delivery Order' (AW: DELIVERY ORDER), which implies it was issued against an existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. This means the initial contract vehicle likely established terms, conditions, and potentially pricing for a range of products or services, and this specific order represents a call for a particular quantity of flares at a defined time. This approach allows for flexibility and streamlined procurement of commonly needed items over a period.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chemring Group PLC (UEI: 216244954)

Address: 155 KILGORE DR, TOONE, TN, 38381

Business Categories: Category Business, Labor Surplus Area Firm, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,916,157

Exercised Options: $30,916,157

Current Obligation: $30,916,157

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA821310D0012

IDV Type: IDC

Timeline