DoD's $22.4M Lebanon Sustainment Services Contract with Alliant Techsystems Raises Questions on Competition and Value
Contract Overview
Contract Amount: $22,411,070 ($22.4M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2019-07-01
End Date: 2024-11-30
Contract Duration: 1,979 days
Daily Burn Rate: $11.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LEBANON SUSTAINMENT SERVICES
Place of Performance
Location: FORT WORTH, TARRANT County, TEXAS, 76106
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $22.4 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: LEBANON SUSTAINMENT SERVICES Key points: 1. The contract's value of $22.4 million is significant for sustainment services. 2. Alliant Techsystems Operations LLC is the sole awardee, indicating a lack of competition. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. The sector is Aircraft Manufacturing, a critical area for defense spending.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type, while flexible, offers limited incentive for cost control by the contractor. Without a competitive benchmark, assessing the pricing against similar sustainment services is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' suggesting a sole-source or limited competition scenario. This significantly restricts price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition and potentially less efficient contract type may result in higher taxpayer costs compared to a fully competitive award.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The long duration (1979 days) of the contract raises concerns about long-term cost-effectiveness. Lack of transparency in pricing due to sole-source award impacts public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Cost Plus Fixed Fee Contract Type
- Long Contract Duration
- No Small Business Participation
Positive Signals
- Awarded to a known defense contractor
- Contract supports critical Air Force operations
Sector Analysis
This contract falls within the Aircraft Manufacturing sector, specifically focusing on sustainment services. Benchmarks for sustainment services can vary widely, but a lack of competition often inflates costs above industry averages.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). This represents a missed opportunity to support small businesses within the defense industrial base.
Oversight & Accountability
The 'NOT AVAILABLE FOR COMPETITION' designation warrants further review by oversight bodies to ensure the justification for limited competition was sound and that the pricing is reasonable.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition may lead to inflated prices.
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- Long contract duration increases long-term cost risk.
- No stated small business participation.
- Limited transparency on justification for sole-source award.
Tags
aircraft-manufacturing, department-of-defense, tx, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.4 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. LEBANON SUSTAINMENT SERVICES
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 $22.4 million.
What is the period of performance?
Start: 2019-07-01. End: 2024-11-30.
What was the specific justification for awarding this contract on a limited or sole-source basis, and were alternative competitive strategies considered?
The justification for awarding this contract on a limited basis is not provided in the data. Typically, such justifications include reasons like urgent need, unique capabilities, or lack of available sources. Without this information, it's impossible to assess if alternative competitive strategies were adequately explored or if this limited approach was truly necessary.
How does the Cost Plus Fixed Fee structure impact the contractor's incentive to control costs for aircraft sustainment services compared to other contract types?
Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs plus a fixed fee representing profit. While it allows for flexibility in evolving requirements, it provides less incentive for cost control than fixed-price contracts. The contractor is guaranteed their costs and a set profit, potentially leading to less rigorous cost management.
What is the estimated taxpayer impact of awarding a $22.4 million contract without competition in the aircraft manufacturing sustainment sector?
Awarding a $22.4 million contract without competition likely results in a negative taxpayer impact. Competitive bidding typically drives down prices by 10-30% or more. Therefore, taxpayers could be overpaying by millions of dollars due to the lack of a competitive process and potentially less efficient cost management under the CPFF structure.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $22,411,070
Exercised Options: $22,411,070
Current Obligation: $22,411,070
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,054,797
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2019-07-01
Current End Date: 2024-11-30
Potential End Date: 2024-11-30 00:00:00
Last Modified: 2026-01-23
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