DoD's $21.2M Contract for Aircraft Parts Awarded to Alliant Techsystems Operations LLC

Contract Overview

Contract Amount: $21,214,734 ($21.2M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2015-01-01

End Date: 2018-04-30

Contract Duration: 1,215 days

Daily Burn Rate: $17.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LEBANON 3RD ARMED CARAVAN

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76106

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: LEBANON 3RD ARMED CARAVAN Key points: 1. Contract awarded to a single, large business, raising questions about competition. 2. The contract value of $21.2M is significant for 'Other Aircraft Parts' manufacturing. 3. Lack of competition and fixed-price structure may limit price discovery. 4. Potential risk associated with sole-source awards and limited oversight.

Value Assessment

Rating: questionable

The contract value of $21.2M for aircraft parts is substantial. Without competitive benchmarks, it's difficult to assess if this price is optimal. The fixed-price nature suggests cost control, but the lack of competition limits validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating a lack of full and open competition. This method can lead to higher prices due to limited price discovery and negotiation leverage for the government.

Taxpayer Impact: Taxpayer funds may be at higher risk of being overspent due to the absence of competitive bidding, potentially impacting overall value for money.

Public Impact

Citizens may question the fairness of awarding large contracts without competitive bidding. The use of taxpayer money for sole-source contracts warrants scrutiny regarding efficiency. Transparency in defense contracting is crucial for public trust and accountability.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
Limited small business participation (indicated by sb: false)

Positive Signals

Firm fixed price contract type
Awarded to a known entity (Alliant Techsystems)

Sector Analysis

This contract falls under the 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector. Spending in this area is critical for maintaining military aviation readiness. Benchmarks for similar sole-source contracts are essential for evaluating value.

Small Business Impact

The data indicates this contract did not involve small businesses (sb: false). This suggests a missed opportunity to support small business growth and potentially leverage specialized capabilities within the sector.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight to ensure fair pricing and contract performance. Without competitive pressure, accountability mechanisms are paramount to safeguard taxpayer interests.

Related Government Programs

Other Aircraft Parts and Auxiliary Equipment Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing due to lack of competitive bidding.
No indication of small business participation.
Contract duration is substantial (1215 days).
Limited transparency on justification for sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. LEBANON 3RD ARMED CARAVAN

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 $21.2 million.

What is the period of performance?

Start: 2015-01-01. End: 2018-04-30.

What specific justification was provided for the sole-source award, and how does it align with federal procurement regulations for non-competitive bids?

Federal regulations permit sole-source awards under specific circumstances, such as when only one responsible source can provide the required supplies or services. The justification typically involves detailed documentation proving the necessity and lack of alternatives. Without access to this specific justification, it's difficult to assess its validity and adherence to procurement laws, which is crucial for ensuring fair use of taxpayer funds.

How does the $21.2M contract value compare to industry benchmarks for similar aircraft parts, especially considering the lack of competition?

Comparing this $21.2M contract value to industry benchmarks is challenging without competitive data. Sole-source awards often lack the price discovery inherent in competitive bidding, potentially leading to higher costs. A thorough analysis would require benchmarking against similar sole-source contracts or, ideally, against prices achieved through competitive processes for comparable parts to assess value for money.

What mechanisms are in place to ensure effective oversight and accountability for this sole-source contract to mitigate risks associated with limited competition?

Effective oversight for sole-source contracts typically involves rigorous contract management, performance monitoring, and potentially independent cost analyses. Agencies should ensure clear performance metrics, regular progress reviews, and mechanisms for addressing any deviations from the contract. The absence of competition heightens the need for proactive government oversight to ensure the contractor delivers required quality and value within the agreed terms.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 173 AMERICAN CONCOURSE, FORT WORTH, TX, 76106

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,410,213

Exercised Options: $21,410,213

Current Obligation: $21,214,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline