DoD awards $2.16M for Ordnance Manufacturing to Alliant Techsystems, a sole-source contract

Contract Overview

Contract Amount: $21,649,921 ($21.6M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2009-08-11

End Date: 2011-09-01

Contract Duration: 751 days

Daily Burn Rate: $28.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GUNS & AMMO

Place of Performance

Location: MESA, MARICOPA County, ARIZONA, 85215

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: GUNS & AMMO Key points: 1. Contract value of $2.16 million for ordnance manufacturing. 2. Sole-source award to Alliant Techsystems Operations LLC. 3. Contract duration of 751 days. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract value is $2.16 million. Without specific unit cost data or benchmarks for 'Other Ordnance and Accessories Manufacturing', a precise pricing assessment is difficult. However, the duration and sole-source nature warrant scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning competition was not sought. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition for this $2.16 million contract may result in suboptimal pricing, impacting taxpayer value.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on a single vendor for critical ordnance supplies. Limited transparency into the pricing justification for this sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
No small business participation

Positive Signals

Contract awarded to a known entity

Sector Analysis

This contract falls under the 'Other Ordnance and Accessories Manufacturing' sector, a niche within the broader defense industrial base. Spending in this area is critical for national security, but often involves specialized suppliers.

Small Business Impact

The contract explicitly states no small business participation. This indicates that opportunities for small businesses in this specific ordnance manufacturing procurement were not pursued or available.

Oversight & Accountability

The sole-source nature of this award raises questions about the effectiveness of oversight in ensuring competitive pricing and maximizing taxpayer value. Further review of the justification for sole-sourcing is recommended.

Related Government Programs

Other Ordnance and Accessories Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competition.
Potential for inflated pricing due to no competition.
No small business participation.
Long contract duration (751 days) with a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. GUNS & AMMO

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 $21.6 million.

What is the period of performance?

Start: 2009-08-11. End: 2011-09-01.

What was the justification for awarding this contract on a sole-source basis, and how was the price determined to be fair and reasonable?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The price is usually determined through negotiation, referencing historical data, or market research. Without access to the specific justification document (e.g., J&A), it's impossible to detail the exact reasoning or pricing methodology used for this $2.16 million contract.

What are the potential risks associated with relying on a single supplier for ordnance manufacturing, especially given the contract's duration?

Relying on a single supplier for ordnance manufacturing poses risks such as supply chain disruptions if the vendor faces issues, potential price increases over time due to lack of competition, and reduced innovation. A long contract duration exacerbates these risks by locking the government into a single source for an extended period, limiting flexibility.

How does this contract contribute to the Department of Defense's overall mission effectiveness in ordnance procurement?

This contract contributes by ensuring a supply of specific ordnance and accessories. However, its sole-source nature and lack of competition raise concerns about cost-effectiveness and long-term strategic sourcing. While it meets an immediate need, it may not represent the most efficient or resilient approach to ordnance procurement.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing

Product/Service Code: AEROSPACE CRAFT AND STRUCTURAL COMPONENTS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: 3309 N RESEDA CIR, MESA, AZ, 04

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

Financial Breakdown

Contract Ceiling: $21,649,921

Exercised Options: $21,649,921

Current Obligation: $21,649,921

Contract Characteristics

Cost or Pricing Data: YES

Timeline