Alliant Techsystems Operations LLC awarded $26.6M for AIM-9M rocket motors, serving Defense needs

Contract Overview

Contract Amount: $26,644,209 ($26.6M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2007-03-14

End Date: 2018-12-30

Contract Duration: 4,309 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AIM-9M ROCKET MOTOR

Place of Performance

Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: AIM-9M ROCKET MOTOR Key points: 1. Contract value of $26.6 million indicates significant investment in missile component production. 2. The contract spans over 11 years, suggesting a long-term need for these components. 3. Awarded to a single contractor, Alliant Techsystems Operations LLC, raising questions about competition. 4. The product, AIM-9M rocket motor, is critical for air-to-air missile systems. 5. Geographic location of performance in West Virginia may have local economic implications. 6. Firm Fixed Price contract type aims to control costs for the government.

Value Assessment

Rating: fair

The total award of $26.6 million over an 11-year period averages approximately $2.4 million per year. Without specific data on the number of units procured or the exact specifications of the AIM-9M rocket motor, a precise value-for-money assessment is challenging. However, the duration of the contract suggests a sustained need and potentially stable pricing. Benchmarking against similar missile component contracts would be necessary for a more definitive evaluation of cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which implies that while competition was considered, certain sources were excluded. This suggests a limited competitive environment rather than a broad solicitation. The specific reasons for excluding other sources are not detailed, making it difficult to assess the full impact on price discovery. A limited competition can sometimes lead to higher prices compared to full and open competition.

Taxpayer Impact: The limited competition may have resulted in less downward pressure on pricing, potentially costing taxpayers more than if a wider range of suppliers had been able to bid.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, ensuring the availability of critical missile components for national security. The contract delivers essential parts for the AIM-9M missile system, vital for tactical aircraft. Performance is located in West Virginia, potentially supporting local jobs and the regional economy within the aerospace manufacturing sector. The contract supports the defense industrial base, particularly in the specialized manufacturing of missile propulsion systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential price inflation and reduced innovation.
The long contract duration could lead to complacency or a lack of incentive for cost reduction over time.
Lack of detailed justification for excluding sources hinders transparency in the procurement process.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Award to a single, established contractor may ensure reliable supply chain management for critical components.
The contract supports a specific, vital defense capability (AIM-9M missile).

Sector Analysis

This contract falls within the Defense sector, specifically the manufacturing of guided missile and space vehicle parts. The market for such specialized components is typically dominated by a few key defense contractors due to high barriers to entry, including technical expertise, security clearances, and established relationships with government agencies. Spending in this sub-sector is driven by defense budgets and geopolitical needs, with contracts often being long-term to ensure supply chain stability for critical munitions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale defense manufacturing contract, it is unlikely that small businesses would be primary awardees. However, Alliant Techsystems Operations LLC, as the prime contractor, may engage small businesses as subcontractors. The extent of small business subcontracting is not detailed here, but it is a common practice in defense contracting to meet set-aside goals and leverage specialized capabilities.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to ensure compliance with terms and conditions. The Firm Fixed Price (FFP) contract type inherently includes cost control mechanisms. Oversight would typically involve monitoring performance, delivery schedules, and quality control. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Transparency is limited by the 'exclusion of sources' designation.

Related Government Programs

AIM-9 Sidewinder Missile Program
Air-to-Air Missile Components
Defense Industrial Base Manufacturing
Guided Missile Parts Manufacturing
Aerospace Component Production

Risk Flags

Limited Competition
Single Source Reliance
Long Contract Duration
Lack of Detailed Justification for Source Exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. AIM-9M ROCKET MOTOR

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $26.6 million.

What is the period of performance?

Start: 2007-03-14. End: 2018-12-30.

What is the historical spending trend for AIM-9M rocket motors by the Department of Defense?

Analyzing historical spending on AIM-9M rocket motors requires access to detailed procurement databases. However, the award to Alliant Techsystems Operations LLC for $26.6 million over approximately 11 years (2007-2018) suggests a consistent, albeit potentially modest, annual expenditure for this specific component during that period. Without further data, it's difficult to establish a long-term trend, but the duration implies a sustained operational requirement. Broader trends in air-to-air missile procurement, influenced by defense strategies and threat assessments, would indirectly impact the demand and spending on components like the AIM-9M rocket motor.

How does the per-unit cost of this AIM-9M rocket motor compare to similar components or previous contracts?

A direct per-unit cost comparison is not feasible with the provided data, as the number of units procured under this $26.6 million contract is unknown. Additionally, the specific technical configuration and age of the AIM-9M variant influence its cost. To benchmark effectively, one would need to compare the average annual expenditure ($2.4 million) against the number of units delivered, or find data on recent procurements of comparable missile rocket motors from other contractors or for different missile variants. The 'limited competition' aspect also suggests that pricing might not be at its most competitive.

What are the specific risks associated with relying on a single contractor for this critical defense component?

Relying on a single contractor, Alliant Techsystems Operations LLC in this case, for critical defense components like the AIM-9M rocket motor presents several risks. Foremost is the risk of supply chain disruption; any issue with the contractor's production facility, labor force, or financial stability could halt deliveries. Secondly, the lack of competition can lead to price escalation over time, as the government has limited leverage. There's also a risk of reduced innovation and responsiveness to evolving requirements, as the contractor may face less pressure to improve processes or technology. Finally, dependence on one supplier can create strategic vulnerabilities if geopolitical events impact that supplier.

What is the track record of Alliant Techsystems Operations LLC in fulfilling defense contracts of similar scope and value?

Alliant Techsystems Operations LLC (now part of Northrop Grumman) has a long and extensive track record in fulfilling defense contracts, particularly in munitions and aerospace components. They are a major defense contractor known for producing a wide range of products, including rocket motors, missile systems, and related technologies. While specific performance metrics for this particular $26.6 million AIM-9M rocket motor contract are not detailed here, the company's overall standing suggests a capability to manage complex production requirements. However, like any large contractor, they may have faced past performance issues on other contracts, which would typically be assessed during the source selection process.

How effective has the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' strategy been in ensuring value for this contract?

The effectiveness of 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' in ensuring value is difficult to ascertain without knowing the rationale behind the exclusion. If legitimate technical or capability reasons existed for excluding other sources (e.g., proprietary technology, unique manufacturing processes), then this approach might have been necessary to secure the required component. However, if sources were excluded arbitrarily or for less compelling reasons, it likely limited price competition, potentially reducing the value obtained by the government. The long duration and significant value suggest a substantial need, but the competitive landscape directly impacts whether taxpayers received the best possible price.

What are the potential long-term implications for the AIM-9M missile system's readiness due to this contract structure?

The contract structure, awarded to a single entity (Alliant Techsystems Operations LLC) for an extended period (over 11 years), has mixed implications for the AIM-9M missile system's readiness. On the positive side, it ensures a consistent supply of a critical component, which supports sustained readiness. However, the limited competition and potential for vendor lock-in could pose long-term risks. If the contractor faces production issues or decides to exit the market, finding an alternative supplier for such a specialized component could be challenging and time-consuming, potentially impacting future readiness. Ensuring the contractor maintains robust quality control and production capacity throughout the contract's life is crucial.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0001906R0062

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 210 STATE ROUTE 956, KEYSER, WV, 26726

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

Financial Breakdown

Contract Ceiling: $26,644,209

Exercised Options: $26,644,209

Current Obligation: $26,644,209

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline