DoD awards $21.7M RATO Rocket Motor Contract to Alliant Techsystems, highlighting propulsion unit manufacturing
Contract Overview
Contract Amount: $21,718,234 ($21.7M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2014-06-13
End Date: 2020-06-30
Contract Duration: 2,209 days
Daily Burn Rate: $9.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUPPLY CONTRACT FOR ROCKET ASSISTED TAKE-OFF (RATO) ROCKET MOTOR AND INITIATOR.
Place of Performance
Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726
Plain-Language Summary
Department of Defense obligated $21.7 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: SUPPLY CONTRACT FOR ROCKET ASSISTED TAKE-OFF (RATO) ROCKET MOTOR AND INITIATOR. Key points: 1. Contract focuses on specialized propulsion units for military aircraft. 2. Alliant Techsystems is a key player in aerospace and defense manufacturing. 3. Potential risks include reliance on a single supplier for critical components. 4. Spending falls within the broader Defense sector, specifically aircraft components.
Value Assessment
Rating: good
The contract value of $21.7 million for RATO rocket motors appears reasonable given the specialized nature of the product. Benchmarking against similar niche defense components suggests this is within expected pricing ranges for such technology.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices and ensure the government receives the best value.
Taxpayer Impact: Full and open competition generally leads to taxpayer savings by fostering a competitive environment that drives down costs.
Public Impact
Ensures readiness of Air Force aircraft requiring RATO capabilities. Supports a critical defense manufacturing supply chain. Potential for technological advancements in rocket motor design.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on specific manufacturing capabilities.
- Potential for obsolescence of older RATO technology.
Positive Signals
- Awarded through full and open competition.
- Long contract duration suggests stable demand.
- Firm fixed price contract limits cost overruns.
Sector Analysis
This contract falls under the aerospace and defense manufacturing sector, specifically focusing on propulsion systems for aircraft. Spending benchmarks for similar specialized military hardware can vary widely based on technological complexity and production volume.
Small Business Impact
The data indicates the prime contractor is Alliant Techsystems Operations LLC, a large business. There is no specific information provided regarding small business subcontracting goals or participation in this particular award.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, focusing on performance, quality, and adherence to terms.
Related Government Programs
- Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole reliance on one type of propulsion technology.
- Potential for supply chain vulnerabilities.
- Long contract duration may outpace technological evolution.
- Limited visibility into specific small business participation.
Tags
guided-missile-and-space-vehicle-propuls, department-of-defense, wv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.7 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. SUPPLY CONTRACT FOR ROCKET ASSISTED TAKE-OFF (RATO) ROCKET MOTOR AND INITIATOR.
Who is the contractor on this award?
The obligated recipient is ALLIANT TECHSYSTEMS OPERATIONS 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 $21.7 million.
What is the period of performance?
Start: 2014-06-13. End: 2020-06-30.
What is the specific operational advantage gained by using RATO rocket motors, and how does this contract ensure that advantage?
RATO rocket motors provide a significant thrust boost, enabling aircraft to take off from shorter runways or under heavier loads, crucial for certain military operations and emergency situations. This contract ensures the continued availability and supply of these specialized motors, maintaining the operational readiness and flexibility of the equipped Air Force aircraft.
What are the primary risks associated with the long-term supply of RATO rocket motors, considering potential technological advancements?
The primary risks include the potential obsolescence of RATO technology as newer, more efficient launch systems emerge. There's also a risk of supply chain disruptions for specialized components or materials. Ensuring the contract includes provisions for technology refresh or alternative sourcing could mitigate these risks over the long term.
How does the firm fixed price structure of this contract contribute to effective cost management for the taxpayer?
A firm fixed price (FFP) contract establishes a set price for the goods delivered, regardless of the contractor's actual costs. This structure shifts the cost risk to the contractor, providing taxpayers with cost certainty and predictability. It incentivizes the contractor to manage their own costs efficiently to maximize profit.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 210 STATE RTE 956, ROCKET CENTER, WV, 26726
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $28,950,234
Exercised Options: $21,718,234
Current Obligation: $21,718,234
Subaward Activity
Number of Subawards: 19
Total Subaward Amount: $3,286,149
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-06-13
Current End Date: 2020-06-30
Potential End Date: 2020-06-30 00:00:00
Last Modified: 2021-02-22
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