DoD's $23.8M Engineering Services Contract Awarded to Alliant Techsystems Operations LLC

Contract Overview

Contract Amount: $23,806,019 ($23.8M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2017-11-27

End Date: 2020-09-15

Contract Duration: 1,023 days

Daily Burn Rate: $23.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NON SBIR REQUIREMENTS ANALYSIS, TRADE STUDIES, AND DESIGN

Place of Performance

Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: NON SBIR REQUIREMENTS ANALYSIS, TRADE STUDIES, AND DESIGN Key points: 1. Contract awarded for non-SBIR requirements analysis, trade studies, and design services. 2. Significant portion of contract value allocated to engineering and technical services. 3. Awarded as a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Contract duration spans over 1000 days, indicating a substantial project timeline. 5. The cost-plus-fixed-fee (CPFF) pricing structure allows for cost reimbursement plus a fixed fee. 6. The contract was not competed, raising questions about potential cost efficiencies. 7. The prime contractor, Alliant Techsystems Operations LLC, has a significant presence in the defense sector.

Value Assessment

Rating: fair

The contract's value of $23.8 million for engineering services over approximately 3 years appears within a reasonable range for complex defense-related analysis and design work. However, without specific benchmarks for the 'NON SBIR REQUIREMENTS ANALYSIS, TRADE STUDIES, AND DESIGN' services, a precise value-for-money assessment is challenging. The CPFF structure can lead to cost overruns if not managed tightly, but it also allows flexibility for evolving project requirements. Comparing this to similar large-scale engineering support contracts within the DoD would provide better context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a delivery order under a previously established contract vehicle, and it was not competed at the delivery order level. This suggests that the initial competition for the IDIQ contract may have been robust, but this specific order did not undergo a new competitive process. The lack of direct competition for this delivery order limits the opportunity for price discovery and potentially reduces the pressure on the contractor to offer the most competitive pricing.

Taxpayer Impact: Taxpayers may not have received the benefit of competitive pricing for these specific services, as the award was not open to multiple bidders at this stage.

Public Impact

The Department of the Navy benefits from specialized engineering analysis and design capabilities. Services delivered include trade studies and design work crucial for future defense systems. The contract supports advanced technological development within the defense sector. Workforce implications include employment for engineers and technical specialists at Alliant Techsystems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition at the delivery order level may lead to suboptimal pricing.
Cost-plus-fixed-fee contracts can incentivize higher spending if not rigorously overseen.
The specific nature of 'NON SBIR REQUIREMENTS ANALYSIS' is broad and could encompass a wide range of costs.
The contract's duration and value suggest a significant commitment without immediate competitive validation.

Positive Signals

Awarded to a known entity, Alliant Techsystems Operations LLC, suggesting a potentially established relationship and understanding of requirements.
The services provided are critical for defense system development and modernization.
The contract is a delivery order under a larger IDIQ, implying some level of prior vetting and competition at the IDIQ level.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The market for specialized engineering, trade studies, and design services for government clients is substantial, driven by the continuous need for technological advancement and system upgrades. Benchmarks for similar large-scale engineering support contracts within the Department of Defense often range in the tens to hundreds of millions of dollars, depending on the scope and duration. The 'NON SBIR REQUIREMENTS ANALYSIS' suggests a focus on foundational research and development support rather than direct Small Business Innovation Research projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a delivery order under a larger IDIQ, the subcontracting opportunities for small businesses would depend on the terms of the original IDIQ contract and Alliant Techsystems' subcontracting plan. Without specific subcontracting data, it's difficult to assess the direct impact on the small business ecosystem for this particular award, though larger prime contractors often utilize small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a delivery order under an IDIQ, the initial contract vehicle likely underwent a competitive process and has established oversight mechanisms. The cost-plus-fixed-fee structure necessitates diligent monitoring of costs and performance to ensure adherence to the fixed fee and prevent unnecessary expenditures. Transparency would be enhanced through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Inspector General if performance or cost issues arise.

Related Government Programs

Department of Defense Engineering Services
Naval Sea Systems Command (NAVSEA) Contracts
Aerospace and Defense Engineering Support
IDIQ Contract Vehicles

Risk Flags

Sole-source award for delivery order
Cost-plus contract type requires strong oversight
Lack of specific performance metrics in provided data

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. NON SBIR REQUIREMENTS ANALYSIS, TRADE STUDIES, AND DESIGN

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 Navy).

What is the total obligated amount?

The obligated amount is $23.8 million.

What is the period of performance?

Start: 2017-11-27. End: 2020-09-15.

What is the specific nature of the 'NON SBIR REQUIREMENTS ANALYSIS, TRADE STUDIES, AND DESIGN' services being procured?

The description 'NON SBIR REQUIREMENTS ANALYSIS, TRADE STUDIES, AND DESIGN' suggests services related to the foundational stages of defense system development. This likely includes analyzing the feasibility of new requirements, conducting comparative assessments of different technological approaches (trade studies), and developing preliminary or detailed designs for systems or components. These services are critical for informing acquisition decisions and ensuring that proposed systems meet operational needs and are technically viable. The 'NON SBIR' designation clarifies that these are not directly tied to the Small Business Innovation Research program, which focuses on R&D by small businesses.

How does the $23.8 million contract value compare to similar engineering services contracts within the Department of the Navy?

The $23.8 million value for a contract spanning over 1000 days (approximately 2.8 years) for specialized engineering analysis and design is within a typical range for significant defense projects. The Department of the Navy procures a wide array of engineering services, with contract values varying greatly based on complexity, duration, and the specific technologies involved. Larger, more comprehensive system design and integration contracts can easily reach hundreds of millions or even billions of dollars. This particular award appears to be for a focused set of analytical and design tasks, making direct comparison difficult without knowing the exact scope and deliverables. However, it represents a substantial investment in early-stage system development.

What are the potential risks associated with a sole-source award for this delivery order?

The primary risk associated with a sole-source award for this delivery order is the potential for suboptimal pricing and reduced incentive for cost efficiency. When a contract is not competed, the government does not benefit from the competitive pressure that typically drives down prices and encourages innovation among multiple bidders. While the initial IDIQ contract may have been competed, awarding subsequent delivery orders on a sole-source basis means that for this specific task, there was no direct comparison of offers. This could lead to the contractor charging higher rates or spending more time on tasks than necessary, as the direct threat of losing future business to a competitor for this particular work is absent.

What is the significance of the Cost Plus Fixed Fee (CPFF) contract type for this procurement?

The Cost Plus Fixed Fee (CPFF) contract type means that the contractor is reimbursed for all allowable costs incurred during the performance of the contract, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined at the outset or is expected to evolve, as is common in research, development, and complex engineering projects. For the government, the CPFF structure provides flexibility to adapt to changing requirements. However, it also places a significant burden on contract oversight to ensure that costs are reasonable and allowable. The fixed fee provides the contractor with an incentive to control costs, as any savings beyond the allowable costs do not increase their fee, but it does not provide the same level of cost-saving incentive as fixed-price contracts.

What is the historical spending pattern for engineering services by the Department of the Navy?

The Department of the Navy consistently spends billions of dollars annually on engineering services, encompassing a vast range of requirements from basic research and analysis to detailed system design, testing, and sustainment engineering. This spending supports the development and maintenance of naval platforms, weapons systems, and associated technologies. Historical data shows a significant portion of this spending is directed towards large prime contractors, often through IDIQ vehicles like the one under which this delivery order was issued. The Navy's engineering services budget is driven by modernization efforts, new platform development (e.g., aircraft carriers, submarines, aircraft), and upgrades to existing capabilities, reflecting the complex and capital-intensive nature of naval power.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 9401 CORBIN AVE, NORTHRIDGE, CA, 91324

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: $23,806,019

Exercised Options: $23,806,019

Current Obligation: $23,806,019

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001917G0011

IDV Type: BOA

Timeline