DoD Awards $16.8M for Magnesium Teflon Viton Countermeasure Flares to Kilgore Flares Company LLC
Contract Overview
Contract Amount: $16,799,870 ($16.8M)
Contractor: Kilgore Flares Company LLC
Awarding Agency: Department of Defense
Start Date: 2022-01-20
End Date: 2025-11-28
Contract Duration: 1,408 days
Daily Burn Rate: $11.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MJU-75/B WHICH IS A MAGNESIUM TEFLON VITON (MTV) COUNTERMEASURE FLARE
Place of Performance
Location: TOONE, HARDEMAN County, TENNESSEE, 38381
Plain-Language Summary
Department of Defense obligated $16.8 million to KILGORE FLARES COMPANY LLC for work described as: MJU-75/B WHICH IS A MAGNESIUM TEFLON VITON (MTV) COUNTERMEASURE FLARE Key points: 1. The Department of Defense is procuring MJU-75/B flares, a critical component for aircraft survivability. 2. Kilgore Flares Company LLC, a single supplier for this specific item, secured the contract. 3. The contract involves a firm fixed price, indicating clear cost expectations. 4. This award falls under the Explosives Manufacturing sector, with production in Tennessee.
Value Assessment
Rating: fair
The contract value of $16.8 million for 1408 units appears high on a per-unit basis when compared to similar defense flares. Further benchmarking against alternative or previous generation flares is recommended to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition. However, the specific nature of the MJU-75/B flare and the limited number of manufacturers may have constrained true price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential defense equipment. The pricing needs careful scrutiny to ensure optimal value for money.
Public Impact
Ensures continued availability of critical defensive countermeasures for Air Force aircraft. Supports a specific manufacturing facility and its workforce in Tennessee. Potential for price increases if competition remains limited for this specialized munition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole source potential for future procurements of this specific flare.
- High per-unit cost requires validation.
- Limited visibility into the manufacturing cost breakdown.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Essential for national defense capabilities.
Sector Analysis
The Explosives Manufacturing sector is highly specialized and often characterized by limited suppliers due to stringent safety and regulatory requirements. Defense spending in this area is critical for national security, but can be susceptible to higher costs due to these factors.
Small Business Impact
This contract was awarded to Kilgore Flares Company LLC, which is not identified as a small business. There is no indication of subcontracting opportunities for small businesses within this award notice.
Oversight & Accountability
The Department of Defense's contracting process, including the use of full and open competition and firm fixed-price contracts, aims to ensure accountability. However, ongoing monitoring of pricing and potential future sole-source situations is crucial.
Related Government Programs
- Explosives Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for sole-source dependency in future
- High per-unit cost requires validation
- Limited competition despite full and open award
- Lack of small business participation noted
Tags
explosives-manufacturing, department-of-defense, tn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.8 million to KILGORE FLARES COMPANY LLC. MJU-75/B WHICH IS A MAGNESIUM TEFLON VITON (MTV) COUNTERMEASURE FLARE
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 $16.8 million.
What is the period of performance?
Start: 2022-01-20. End: 2025-11-28.
What is the justification for the high per-unit cost of the MJU-75/B flare compared to similar defense countermeasures?
The high per-unit cost may be attributed to the specialized nature of the Magnesium Teflon Viton (MTV) composition, stringent performance requirements, and potentially limited production volumes. Further analysis of the bill of materials, manufacturing processes, and comparison with flares possessing similar capabilities but different compositions would be necessary to fully justify the cost.
What are the risks associated with relying on a single supplier for this critical countermeasure flare?
Reliance on a single supplier, Kilgore Flares Company LLC, poses significant risks including supply chain disruptions due to unforeseen events, potential for price escalation in future contracts, and reduced leverage for the government in negotiations. This dependency could impact operational readiness if supply is interrupted.
How effectively does this contract ensure the long-term availability and affordability of essential defensive flares?
The contract ensures immediate availability through a firm fixed price. However, long-term affordability is questionable given the potential for single-source dependency. Proactive market research and development of alternative or next-generation flares could mitigate future affordability risks and ensure sustained availability.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA821321R3034
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Compagnie Industrielle DE Delle
Address: 155 KILGORE DR, TOONE, TN, 38381
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $16,799,870
Exercised Options: $16,799,870
Current Obligation: $16,799,870
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA821321D0005
IDV Type: IDC
Timeline
Start Date: 2022-01-20
Current End Date: 2025-11-28
Potential End Date: 2025-11-28 00:00:00
Last Modified: 2025-11-24
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