DoD's $37M Minuteman/Peacekeeper Aging Surveillance Contract Awarded to ATK Launch Systems
Contract Overview
Contract Amount: $37,051,453 ($37.1M)
Contractor: ATK Launch Systems LLC
Awarding Agency: Department of Defense
Start Date: 2013-03-11
End Date: 2019-01-25
Contract Duration: 2,146 days
Daily Burn Rate: $17.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::CL,CT::IGF MINUTEMAN (MM)&PEACEKEEPER (PK) AGING SURVEILLANCE (AS)&MOTOR DISPOSAL FOLLOW-ON CONTRACT
Place of Performance
Location: CORINNE, BOX ELDER County, UTAH, 84307
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $37.1 million to ATK LAUNCH SYSTEMS LLC for work described as: IGF::CL,CT::IGF MINUTEMAN (MM)&PEACEKEEPER (PK) AGING SURVEILLANCE (AS)&MOTOR DISPOSAL FOLLOW-ON CONTRACT Key points: 1. Contract focuses on critical missile system surveillance and motor disposal. 2. ATK Launch Systems, a significant defense contractor, secured the award. 3. Potential risks include aging infrastructure and the need for specialized expertise. 4. Spending falls within the broad Defense sector, specifically missile propulsion.
Value Assessment
Rating: fair
The contract value of $37M over approximately 6 years suggests a moderate annual spend. Benchmarking against similar missile system sustainment contracts would be necessary to fully assess pricing.
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 generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense capabilities.
Public Impact
Ensures the continued operational readiness of critical Minuteman and Peacekeeper missile systems. Addresses the safe and compliant disposal of aging missile motors. Supports national security by maintaining the integrity of the U.S. nuclear deterrent.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Aging surveillance technology may require upgrades.
- Disposal of hazardous materials presents environmental and safety risks.
- Dependence on a single contractor for critical sustainment.
Positive Signals
- Awarded through full and open competition.
- Supports a vital national security program.
- Long-term contract provides stability for sustainment efforts.
Sector Analysis
This contract falls under the Defense sector, specifically focusing on the sustainment and disposal of strategic missile systems. Spending in this niche area is driven by national security imperatives and the lifecycle management of aging weapon platforms.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, ATK Launch Systems, is a large entity, suggesting that any small business involvement would likely be as subcontractors.
Oversight & Accountability
The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration and oversight. The definitive contract type implies specific deliverables and oversight mechanisms are in place.
Related Government Programs
- Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Aging infrastructure and technology.
- Environmental and safety risks of motor disposal.
- Potential for cost overruns on complex sustainment.
- Dependence on a single source for critical components/services.
- Long-term viability of aging missile systems.
Tags
guided-missile-and-space-vehicle-propuls, department-of-defense, ut, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.1 million to ATK LAUNCH SYSTEMS LLC. IGF::CL,CT::IGF MINUTEMAN (MM)&PEACEKEEPER (PK) AGING SURVEILLANCE (AS)&MOTOR DISPOSAL FOLLOW-ON CONTRACT
Who is the contractor on this award?
The obligated recipient is ATK LAUNCH SYSTEMS LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $37.1 million.
What is the period of performance?
Start: 2013-03-11. End: 2019-01-25.
What is the projected cost of maintaining and disposing of these aging missile systems over their remaining service life?
The current contract covers a portion of the sustainment and disposal costs for the Minuteman and Peacekeeper systems. A comprehensive lifecycle cost analysis would be needed to project future expenditures, considering potential technological obsolescence, evolving safety regulations for disposal, and the extended service life of these critical assets.
What are the primary risks associated with the disposal of aging missile motors under this contract?
Key risks include environmental hazards from propellants and materials, safety concerns during handling and demilitarization, and compliance with stringent regulatory requirements. Inadequate planning or execution could lead to accidents, environmental contamination, or failure to meet disposal standards, resulting in significant remediation costs and reputational damage.
How effectively does this contract ensure the long-term readiness and security of the U.S. nuclear deterrent?
The contract is crucial for ensuring the continued operational readiness of the Minuteman and Peacekeeper systems through aging surveillance. By addressing maintenance and disposal needs, it directly supports the reliability and security of the U.S. nuclear deterrent. However, effectiveness hinges on the contractor's performance and the government's oversight in managing these complex and aging assets.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Propulsion Unit and Propulsion Unit Parts Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: 9160 N HWY 83, CORINNE, UT, 84307
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,189,747
Exercised Options: $37,132,997
Current Obligation: $37,051,453
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $530,450
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-03-11
Current End Date: 2019-01-25
Potential End Date: 2019-01-25 00:00:00
Last Modified: 2020-08-03
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