DoD awards $20.4M for Pyrotechnics, highlighting potential risks in non-competed contracts
Contract Overview
Contract Amount: $20,390,000 ($20.4M)
Contractor: ATK Launch Systems LLC
Awarding Agency: Department of Defense
Start Date: 2006-01-26
End Date: 2009-07-15
Contract Duration: 1,266 days
Daily Burn Rate: $16.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200605!600289!2100!W15QKN!TACOM - PICATINNY !W15QKN04D1003 !A!N! !N!0013 ! !20060126!20061222!002241164!002241164!001339472!N!ATK THIOKOL, INC !9160 NORTH HIGHWAY 83 !CORINNE !UT!84307!15830!003!49!CORINNE !BOX ELDER !UTAH !+000020390000!N!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !000 !NOT DISCERNABLE !325998!E! !5!B!S! ! ! !99990909!B! ! !N!Z!D!U!J!1!001!N!2A!Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: CORINNE, BOX ELDER County, UTAH, 84307
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $20.4 million to ATK LAUNCH SYSTEMS LLC for work described as: 200605!600289!2100!W15QKN!TACOM - PICATINNY !W15QKN04D1003 !A!N! !N!0013 ! !20060126!20061222!002241164!002241164!001339472!N!ATK THIOKOL, INC !9160 NORTH HIGHWAY 83 !CORINNE !UT!84307!15830!003!49!CORINNE !BOX … Key points: 1. The contract for pyrotechnics was awarded to ATK Thiokol, Inc. for $20.4 million. 2. The procurement method was 'NOT COMPETED', raising concerns about price discovery and value. 3. The sector is 'All Other Miscellaneous Chemical Product and Preparation Manufacturing', a niche area. 4. The duration of the contract is 1266 days, indicating a long-term need for these specialized materials.
Value Assessment
Rating: questionable
The contract value of $20.4 million for pyrotechnics is difficult to assess without competitive benchmarks. The lack of competition suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, meaning the government did not explore alternative sources or negotiate based on competitive offers. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these pyrotechnic supplies.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long contract duration could lock the government into a potentially suboptimal price for an extended period. Reliance on a single source for critical pyrotechnic materials could pose supply chain risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpricing
- Long Contract Duration
Positive Signals
- Specific Need Identified
- Established Supplier
Sector Analysis
This contract falls within the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' sector. Spending in this niche area is often project-specific and can be subject to unique market dynamics and limited supplier availability.
Small Business Impact
There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the government obtained fair and reasonable pricing and that this approach was justified.
Related Government Programs
- All Other Miscellaneous Chemical Product and Preparation Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of documented justification for sole-sourcing
- Potential for inflated pricing
- Long-term dependency on a single supplier
- Limited transparency in price negotiation
Tags
all-other-miscellaneous-chemical-product, department-of-defense, ut, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to ATK LAUNCH SYSTEMS LLC. 200605!600289!2100!W15QKN!TACOM - PICATINNY !W15QKN04D1003 !A!N! !N!0013 ! !20060126!20061222!002241164!002241164!001339472!N!ATK THIOKOL, INC !9160 NORTH HIGHWAY 83 !CORINNE !UT!84307!15830!003!49!CORINNE !BOX ELDER !UTAH !+000020390000!N!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !000 !NOT DISCERNABLE !325998!E! !5!B!S! ! ! !999
Who is the contractor on this award?
The obligated recipient is ATK LAUNCH SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $20.4 million.
What is the period of performance?
Start: 2006-01-26. End: 2009-07-15.
What was the justification for not competing this contract, and was a price reasonableness analysis conducted?
The justification for not competing this contract is not provided in the data. Typically, agencies must document reasons such as urgent and compelling needs or the unavailability of other sources. A price reasonableness analysis is crucial in sole-source procurements to ensure the government is not overpaying, often involving comparison to historical prices or commercial item pricing.
What are the risks associated with relying on a single supplier for pyrotechnics, especially given the contract's duration?
Relying on a single supplier for pyrotechnics creates significant supply chain risks, including potential disruptions due to the supplier's operational issues, price increases, or geopolitical factors. The long contract duration (1266 days) exacerbates these risks by limiting the government's flexibility to switch suppliers if issues arise or better alternatives become available.
How does the $20.4 million contract value compare to industry benchmarks for similar pyrotechnic products?
Without specific details on the exact pyrotechnic products and quantities, a direct comparison to industry benchmarks is challenging. However, the absence of competition makes it difficult to ascertain if $20.4 million represents a fair market price. A thorough review of the pricing data and negotiation records would be necessary to assess value.
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: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 9160 NORTH HIGHWAY 83, CORINNE, UT, 01
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN04D1003
IDV Type: IDC
Timeline
Start Date: 2006-01-26
Current End Date: 2009-07-15
Potential End Date: 2009-07-15 00:00:00
Last Modified: 2009-06-30
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