DoD awards $30.6M for infrared countermeasures, with a significant portion for explosives manufacturing

Contract Overview

Contract Amount: $30,640,904 ($30.6M)

Contractor: Kilgore Flares Company LLC

Awarding Agency: Department of Defense

Start Date: 2006-11-17

End Date: 2007-12-13

Contract Duration: 391 days

Daily Burn Rate: $78.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: NOT REPORTED

Sector: Defense

Official Description: FLARE, INFRARED COUNTERMEASURE MJU-39/B

Place of Performance

Location: TOONE, HARDEMAN County, TENNESSEE, 38381

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to KILGORE FLARES COMPANY LLC for work described as: FLARE, INFRARED COUNTERMEASURE MJU-39/B Key points: 1. Contract value of $30.6M for flares and countermeasures indicates a substantial investment in defense capabilities. 2. The contract's focus on explosives manufacturing highlights a critical niche within the defense supply chain. 3. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific justification for limiting initial bidders. 4. The award to KILGORE FLARES COMPANY LLC points to a specialized supplier for these essential defense components. 5. The contract duration of approximately one year (November 2006 - December 2007) suggests a need for timely delivery of these specific items. 6. The North American Industry Classification System (NAICS) code 325920 confirms the focus on explosives manufacturing.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparisons to similar, recent awards for infrared countermeasures. The raw dollar amount of $30.6 million is significant for a single contract of this nature. However, without data on the quantity of units procured or the specific technical requirements, it's difficult to definitively assess value for money. Further analysis would require comparing unit costs to industry standards or other government contracts for similar defense materiel.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This procurement method implies that while the competition was intended to be open, there was a specific reason or justification for excluding certain sources initially, possibly due to specialized capabilities or prior relationships. The number of bidders is not explicitly stated, but the designation suggests a controlled competitive environment rather than a broad solicitation.

Taxpayer Impact: This procurement method, while allowing for competition, may limit the potential for the lowest possible price if the initial exclusion criteria were overly restrictive. Taxpayers benefit from competition, but the specific nature of this award warrants scrutiny to ensure maximum value was achieved.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other branches of the Department of Defense requiring advanced infrared countermeasures. The services delivered include the manufacturing and supply of critical defense equipment: flares and infrared countermeasures (MJU-39/B). The geographic impact is primarily related to the contractor's facility in Tennessee (ST: TN, SN: TENNESSEE), where the manufacturing and production would occur. Workforce implications include employment opportunities within the explosives manufacturing sector at the contractor's site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential risks associated with the handling and manufacturing of explosive materials.
The 'exclusion of sources' aspect of the competition could indicate a lack of broader market engagement, potentially impacting price discovery.
The relatively short contract duration might suggest urgent needs or a limited scope, requiring careful management to ensure sustained supply if needed.

Positive Signals

Awarding to a specialized manufacturer like KILGORE FLARES COMPANY LLC ensures access to critical, niche defense technology.
The contract falls under the Department of Defense, indicating a focus on national security priorities.
The use of a specific NAICS code (325920) demonstrates clear categorization and tracking of defense spending in the explosives sector.

Sector Analysis

The defense industry, particularly the segment focused on aerospace and defense manufacturing, relies on specialized components like infrared countermeasures. The market for such items is often characterized by a limited number of highly qualified suppliers due to stringent technical and safety requirements. This contract fits within the broader category of defense procurement for aircraft survivability equipment. Comparable spending benchmarks would typically be found within the Department of Defense's budget allocations for electronic warfare and countermeasures.

Small Business Impact

There is no indication from the provided data that this contract included a small business set-aside. The award was made to KILGORE FLARES COMPANY LLC. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's subcontracting plan, if one was required or filed. Without this information, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would fall under the Department of Defense and the specific agency that awarded it, the Department of the Air Force. Accountability measures would be tied to the contract's performance clauses, delivery schedules, and quality standards. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Aircraft Survivability Equipment
Infrared Countermeasure Systems
Explosives and Ammunition Manufacturing
Aerospace Defense Components

Risk Flags

Procurement method 'full and open competition after exclusion of sources' requires justification.
Contract involves manufacturing of explosive materials, necessitating strict safety and handling protocols.
Limited contract duration may indicate potential for follow-on needs or urgent operational requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to KILGORE FLARES COMPANY LLC. FLARE, INFRARED COUNTERMEASURE MJU-39/B

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 $30.6 million.

What is the period of performance?

Start: 2006-11-17. End: 2007-12-13.

What is the specific technical capability of KILGORE FLARES COMPANY LLC that led to their selection under 'full and open competition after exclusion of sources'?

The designation 'full and open competition after exclusion of sources' suggests that while the competition was intended to be open, there was a specific justification for not soliciting from all potential sources. This could be due to proprietary technology, unique manufacturing capabilities, or prior successful performance on related systems. KILGORE FLARES COMPANY LLC is known for its expertise in manufacturing pyrotechnic devices, including flares and countermeasures. Their specialized facilities and established processes for handling explosive materials likely met stringent requirements that not all potential manufacturers could satisfy, leading to the exclusion of broader solicitation in favor of a more targeted competition among qualified entities.

How does the unit cost of the MJU-39/B flare compare to similar infrared countermeasures procured by the DoD?

Determining the precise unit cost for the MJU-39/B flare from the provided data is not possible as the total award amount ($30.6M) and the number of units procured are not both specified. To compare unit costs, one would need to access detailed contract line item numbers (CLINs) or procurement quantities. Benchmarking would involve searching databases for other awards of the MJU-39/B or functionally equivalent flares (e.g., ALE-47 countermeasures) to establish a market rate. Without this granular data, a direct comparison of value for money on a per-unit basis cannot be accurately made. Historical spending patterns for similar items would be the next best indicator.

What are the primary risks associated with the manufacturing and handling of the MJU-39/B flares, and how are they mitigated?

The primary risks associated with the MJU-39/B flares stem from their nature as pyrotechnic devices containing explosive materials. These risks include potential accidental ignition during manufacturing, storage, or transportation, leading to safety hazards for personnel and facilities. Environmental risks could also arise from the disposal of expired or defective materials. Mitigation strategies typically involve stringent safety protocols, specialized handling procedures, secure storage facilities, rigorous quality control testing, and compliance with all relevant federal regulations (e.g., ATF, OSHA, EPA). Contractor facilities are subject to regular inspections and audits to ensure adherence to these safety and environmental standards.

What is the historical spending trend for infrared countermeasures by the Department of the Air Force?

Analyzing the historical spending trend for infrared countermeasures by the Department of the Air Force requires access to multi-year procurement data. This specific contract from 2006-2007 represents a single data point. A comprehensive trend analysis would involve examining annual spending on similar items (e.g., flares, chaff, electronic warfare countermeasures) over the past 5-10 years. Factors influencing trends include evolving threat environments, technological advancements in countermeasures, aircraft modernization programs, and overall defense budget allocations. Increased geopolitical tensions or the introduction of new aerial threats often correlate with higher spending on countermeasures.

What is the strategic importance of the MJU-39/B flare within the DoD's overall electronic warfare and survivability strategy?

The MJU-39/B flare is a crucial component of the DoD's strategy to enhance aircraft survivability against infrared-guided missiles. These flares function as decoys, emitting intense heat to lure heat-seeking missiles away from the aircraft. Their effectiveness is vital for protecting aircrews and expensive platforms in contested airspace. The DoD invests significantly in such countermeasures because they represent a relatively low-cost, high-impact solution for mitigating a significant threat. The continuous development and procurement of advanced flares like the MJU-39/B are essential to stay ahead of evolving missile technologies and ensure air superiority and mission success across various operational theaters.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: NOT REPORTED (NO)

Evaluated Preference: NONE

Contractor Details

Address: 155 KILGORE RD, TOONE, TN, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,640,904

Exercised Options: $30,640,904

Current Obligation: $30,640,904

Contract Characteristics

Cost or Pricing Data: NO

Timeline