DoD awards $116M contract for M212 Flares without decals to ATK Launch Systems
Contract Overview
Contract Amount: $11,611,161 ($11.6M)
Contractor: ATK Launch Systems LLC
Awarding Agency: Department of Defense
Start Date: 2007-04-27
End Date: 2010-04-30
Contract Duration: 1,099 days
Daily Burn Rate: $10.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M212 FLARES W/O DECAL
Place of Performance
Location: CORINNE, BOX ELDER County, UTAH, 84307
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $11.6 million to ATK LAUNCH SYSTEMS LLC for work described as: M212 FLARES W/O DECAL Key points: 1. Contract awarded to ATK Launch Systems LLC for M212 Flares. 2. Total contract value is $116,111,610. 3. The contract was not competed, raising questions about price discovery. 4. The product falls under 'All Other Miscellaneous Chemical Product and Preparation Manufacturing'. 5. The contract duration is 1099 days.
Value Assessment
Rating: questionable
The contract value is substantial at over $116 million. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar defense procurement contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning ATK Launch Systems LLC was the only vendor considered. This lack of competition limits the government's ability to secure the best possible price through market forces.
Taxpayer Impact: The absence of competition may lead to taxpayers paying a premium for these flares, as there was no incentive for ATK to offer the lowest possible price.
Public Impact
Military readiness may be impacted if flares are critical components. Taxpayer funds are committed to a single supplier without competitive pressure. Potential for higher costs due to lack of market competition. Dependence on one supplier for essential defense materials.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Established supplier for defense contracts
Sector Analysis
This contract falls within the Defense sector, specifically related to chemical product manufacturing for military applications. Defense procurement often involves specialized items where competition can be limited, but the scale of this award warrants scrutiny.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. The award went directly to a large, established defense contractor.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight in the initial procurement phase. Further oversight would be needed to ensure fair pricing and performance throughout the contract's duration.
Related Government Programs
- All Other Miscellaneous Chemical Product and Preparation Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for overpayment due to lack of competition.
- Limited visibility into cost drivers.
- Dependence on a single supplier.
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 $11.6 million to ATK LAUNCH SYSTEMS LLC. M212 FLARES W/O DECAL
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $11.6 million.
What is the period of performance?
Start: 2007-04-27. End: 2010-04-30.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs where only one contractor can fulfill the requirement. Without further documentation, it's unclear if these criteria were met, necessitating a review of the procurement process to ensure it was appropriate.
What are the risks associated with a sole-source contract of this magnitude?
The primary risks include inflated pricing due to lack of competition, potential for complacency from the awarded contractor regarding quality or delivery, and a lack of incentive to innovate. For a contract valued at over $116 million, these risks are amplified, potentially leading to significant financial and operational drawbacks for the Department of Defense.
How will the government ensure value for money and effective performance without competition?
The government can mitigate risks by implementing robust contract management, including detailed performance metrics, regular progress reviews, and potentially independent cost analyses. Strong oversight and clear communication channels with the contractor are crucial to ensure deliverables meet specifications and that the pricing remains justifiable throughout the contract lifecycle.
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
Financial Breakdown
Contract Ceiling: $11,611,548
Exercised Options: $11,611,548
Current Obligation: $11,611,161
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN04D1003
IDV Type: IDC
Timeline
Start Date: 2007-04-27
Current End Date: 2010-04-30
Potential End Date: 2010-04-30 00:00:00
Last Modified: 2011-04-13
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