DoD's $13.3M Engineering Services Contract Awarded to Alliant Techsystems Operations LLC Under Sole Source Basis

Contract Overview

Contract Amount: $13,271,387 ($13.3M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2018-01-11

End Date: 2022-03-18

Contract Duration: 1,527 days

Daily Burn Rate: $8.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ARH EXECUTIVE PROCESSOR REDESIGN

Place of Performance

Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.3 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: ARH EXECUTIVE PROCESSOR REDESIGN Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. Significant duration of over 4 years suggests a substantial project scope. 3. Engineering services are critical for complex defense systems, indicating high technical requirements. 4. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 5. Awarded by the Department of the Navy, a major component of the DoD. 6. The contract's value is substantial, requiring careful oversight to ensure value for money.

Value Assessment

Rating: fair

Benchmarking the value of this $13.3 million contract is challenging without specific deliverables. However, Cost Plus Fixed Fee contracts, while offering flexibility for evolving requirements, inherently carry a higher risk of cost escalation compared to fixed-price contracts. The absence of competition further complicates a direct value-for-money assessment. It is crucial to compare the final costs against the initial estimates and the achieved technical outcomes to determine if the investment was justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary unique capabilities, proprietary technology, or when urgent circumstances preclude a competitive process. The lack of competition means that pricing was not subjected to market forces, potentially leading to higher costs for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding, as there was no pressure on the contractor to offer the lowest possible price.

Public Impact

The Department of Defense benefits from specialized engineering services for its complex systems. This contract supports the development and redesign of critical executive processors. The primary geographic impact is within California, where the contractor is located. The contract likely supports a specialized workforce of engineers and technical experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Lack of detailed public information on specific deliverables hinders performance assessment.

Positive Signals

Award to a known entity (Alliant Techsystems) suggests established capabilities.
Engineering services are vital for maintaining and advancing defense technology.
Contract duration indicates a potentially significant and complex project.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential support for the design, development, and maintenance of advanced military systems. This contract falls within the broader engineering services market, which is characterized by high technical expertise and specialized knowledge. Comparable spending in this sector often involves significant investments in research, development, and complex system integration, making robust oversight crucial.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by the 'sb' field being false. Furthermore, the 'ss' field is also false, suggesting it was not a small business prime contractor. This means that opportunities for small businesses to participate as subcontractors would depend on the prime contractor's subcontracting plan and initiatives, rather than a direct set-aside requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be tied to the terms of the Cost Plus Fixed Fee agreement, requiring detailed reporting on costs and progress. Transparency is often limited in sole-source defense contracts, but contract award data is publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development
Naval Systems Engineering Support
Defense Contractor Services
Executive Processor Technology

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.3 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. ARH EXECUTIVE PROCESSOR REDESIGN

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 $13.3 million.

What is the period of performance?

Start: 2018-01-11. End: 2022-03-18.

What specific "executive processor redesign" tasks were undertaken under this contract?

The provided data does not detail the specific tasks performed under the "ARH EXECUTIVE PROCESSOR REDESIGN" contract. The contract title suggests work related to improving or updating the design of executive processors, which are crucial components in computing systems responsible for managing operations. Without access to the contract's statement of work (SOW) or performance reports, it is impossible to ascertain the precise nature of the redesign, the technologies involved, or the specific engineering challenges addressed. Further investigation into contract documentation would be required to understand the scope of work.

How does the $13.3 million cost compare to similar engineering services contracts for processor redesign within the DoD?

Directly comparing the $13.3 million cost to similar contracts is difficult without more specific data points, such as the scope of work, complexity of the processors, and the duration of comparable projects. However, the Cost Plus Fixed Fee (CPFF) contract type, used here, generally results in higher costs than fixed-price contracts due to the government bearing the risk of cost overruns. Given that this was a sole-source award, the absence of competition means the price was not benchmarked against market rates. A thorough comparison would require analyzing the technical specifications, deliverables, and the competitive landscape of other processor redesign contracts within the Department of Defense over a similar timeframe.

What are the primary risks associated with a sole-source, Cost Plus Fixed Fee contract for engineering services?

The primary risks associated with a sole-source, Cost Plus Fixed Fee (CPFF) contract for engineering services are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to inflated pricing and reduced incentive for the contractor to optimize costs. The government does not benefit from the price discovery mechanism inherent in competitive bidding. Secondly, the CPFF structure shifts the financial risk of cost overruns to the government. While it allows for flexibility in projects with uncertain technical requirements, it necessitates stringent oversight to prevent scope creep and ensure that costs remain reasonable and aligned with the fixed fee. Without robust monitoring, such contracts can exceed their estimated budgets significantly.

What is the track record of Alliant Techsystems Operations LLC in delivering complex engineering services for the Department of the Navy?

Alliant Techsystems Operations LLC (now part of Northrop Grumman) has a significant history of contracting with the Department of Defense, including the Department of the Navy, for a wide range of engineering and technical services. While this specific contract was sole-sourced, the company's extensive experience in defense contracting suggests a baseline capability. Assessing their track record would involve reviewing past performance evaluations, contract completion success rates, and any documented issues or disputes on previous Navy contracts. Publicly available data often provides high-level contract award information, but detailed performance metrics require access to more specialized government performance assessment systems.

What are the implications of the 1527-day duration for this contract?

The contract duration of 1527 days, approximately 4.2 years, indicates a long-term engagement for the "ARH EXECUTIVE PROCESSOR REDESIGN." This extended period suggests that the project is substantial in scope, complexity, and likely involves ongoing development, testing, or integration phases. For the government, a long duration can imply a stable, albeit potentially costly, provision of critical services. For the contractor, it offers revenue stability. However, such extended timelines also increase the risk of technological obsolescence, changes in requirements, and potential cost escalations over the contract's life, necessitating continuous program management and oversight.

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

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: $13,521,466

Exercised Options: $13,521,466

Current Obligation: $13,271,387

Actual Outlays: $3,395,818

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0001917G0011

IDV Type: BOA

Timeline