DoD awards $26.7M contract for ordnance accessories, with Alliant Techsystems Inc. as the sole awardee

Contract Overview

Contract Amount: $26,679,448 ($26.7M)

Contractor: Alliant Techsystems Inc

Awarding Agency: Department of Defense

Start Date: 2004-09-23

End Date: 2011-01-31

Contract Duration: 2,321 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Place of Performance

Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to ALLIANT TECHSYSTEMS INC for work described as: Key points: 1. Contract awarded under a firm-fixed-price structure, indicating predictable costs for the government. 2. The contract was competed on a full and open basis, suggesting a broad search for qualified vendors. 3. Awarded to a single contractor, raising questions about the extent of competition achieved. 4. The contract duration spans over 2300 days, implying a long-term need for these ordnance accessories. 5. The awardee, Alliant Techsystems Inc., is a significant player in the defense sector. 6. The contract falls under 'Other Ordnance and Accessories Manufacturing', a specialized niche within defense procurement.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the ordnance accessories procured and their unit costs. The firm-fixed-price nature provides cost certainty, but the lack of multiple bids in the final award stage could indicate a missed opportunity for price optimization. Comparing this to similar, smaller-scale procurements for specialized ordnance components would be necessary to assess if the $26.7 million represents a fair market value over its extended duration.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that the solicitation was broadly advertised to all responsible sources. However, despite this broad initial competition, the award was made to a single entity, Alliant Techsystems Inc. This outcome could imply that only one bidder met all the stringent requirements, or that the evaluation process favored a single offeror significantly. The limited number of actual awardees (one) warrants further investigation into the pre-award competition phase.

Taxpayer Impact: While the initial competition was open, the single awardee means taxpayers may not have benefited from the price reductions typically driven by multiple competing bids at the final award stage.

Public Impact

The primary beneficiaries are the Department of Defense units requiring ordnance accessories for their operations. The contract ensures the supply of essential components for military readiness and operational effectiveness. The geographic impact is primarily within the United States, with potential for distribution to various military installations. Workforce implications may include specialized manufacturing roles at Alliant Techsystems Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited price competition at the award stage despite open solicitation.
Long contract duration could lead to price escalation if not managed effectively.
Reliance on a single contractor for critical ordnance components.

Positive Signals

Awarded through a full and open competition process, maximizing initial vendor outreach.
Firm-fixed-price contract provides cost predictability for the government.
Awardee has significant experience in defense contracting.

Sector Analysis

The defense manufacturing sector is characterized by high barriers to entry, stringent quality requirements, and long-term government contracts. This contract for ordnance accessories fits within the 'Other Ordnance and Accessories Manufacturing' sub-sector, which is critical for maintaining military hardware. Spending in this area is often driven by modernization programs and operational tempo. Comparable spending benchmarks would typically be found within broader defense procurement data for weapon systems components and ammunition manufacturing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Alliant Techsystems Inc., may engage small businesses as subcontractors, depending on their internal sourcing strategies and the specific components required for the ordnance accessories.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, quality standards, and delivery schedules. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Ordnance Manufacturing
Defense Ammunition Procurement
Military Hardware Components
Defense Industrial Base

Risk Flags

Single Award Risk
Potential for Price Escalation
Lack of Detailed Item Specification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to ALLIANT TECHSYSTEMS INC. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is ALLIANT TECHSYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.7 million.

What is the period of performance?

Start: 2004-09-23. End: 2011-01-31.

What is the specific nature of the 'Other Ordnance and Accessories' being procured under this contract?

The provided data does not specify the exact nature of the 'Other Ordnance and Accessories' procured. This category is broad and can encompass a wide range of items, including but not limited to, components for artillery shells, small arms ammunition, specialized firing mechanisms, protective gear for ordnance handling, or related maintenance and repair parts. Further details would require accessing the contract's statement of work or technical specifications, which are not included in the abbreviated data.

How does the $26.7 million contract value compare to historical spending on similar ordnance accessories by the Department of Defense?

Without specific details on the exact ordnance accessories, a direct historical comparison is difficult. However, $26.7 million over a period of approximately 6.5 years (2321 days) represents an average annual expenditure of roughly $4.1 million. This figure needs to be contextualized against the scale and complexity of the items. The Department of Defense procures a vast array of ordnance-related items, with individual contracts ranging from thousands to billions of dollars. To assess value, one would need to identify comparable contracts for similar types and quantities of accessories and analyze their total value, duration, and pricing structures over time.

What are the key performance indicators (KPIs) used to evaluate Alliant Techsystems Inc.'s performance on this contract?

The provided data does not detail the specific Key Performance Indicators (KPIs) for this contract. Typically, for defense contracts involving manufactured goods like ordnance accessories, KPIs would focus on aspects such as on-time delivery rates, defect rates (quality control), adherence to technical specifications, and compliance with safety and environmental regulations. The contracting officer and the Defense Contract Management Agency (DCMA) would monitor these metrics throughout the contract's lifecycle. Performance evaluations would likely be documented in contract performance reports.

What is the risk associated with having a single awardee for this critical ordnance supply?

The primary risk associated with a single awardee is reduced leverage for price negotiation and potential supply chain vulnerability. If Alliant Techsystems Inc. faces production issues, financial difficulties, or decides to discontinue the product line, the Department of Defense could face significant disruptions in obtaining these essential ordnance accessories. This reliance also limits the government's ability to benefit from competitive pricing that might arise from multiple bidders vying for the contract. Mitigation strategies could include robust contract management, contingency planning, and potentially exploring alternative suppliers for future procurements.

What is the typical profit margin for contractors on firm-fixed-price defense contracts of this nature?

Profit margins on firm-fixed-price defense contracts can vary significantly based on factors such as contract complexity, risk, competition level, and the contractor's efficiency. While specific profit margins are not publicly disclosed for individual contracts, industry averages for defense contracting often range from 5% to 15%. For a firm-fixed-price contract, the contractor assumes more risk, which can sometimes justify a higher potential profit margin if they manage costs effectively. However, the government aims to ensure the price is fair and reasonable through its acquisition process.

How does the 'Other Ordnance and Accessories Manufacturing' category contribute to the overall defense industrial base?

The 'Other Ordnance and Accessories Manufacturing' category is a vital component of the defense industrial base, providing essential, often specialized, parts and systems that enable the functionality of larger weapon platforms and ammunition. Companies operating in this niche ensure the availability of critical components that might not be mass-produced or easily substituted. Maintaining a robust industrial base in this area is crucial for national security, ensuring that the military has access to the necessary equipment and spare parts to maintain readiness and respond to evolving threats.

Industry Classification

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

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2643 WEST COURT STREET, JANESVILLE, WI, 01

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline