DoD's $308M Anti-Terrorism Contract with Alliant Techsystems: Industrial Building Construction for 15 Years

Contract Overview

Contract Amount: $30,797,386 ($30.8M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2024-11-18

Contract Duration: 5,528 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Construction

Official Description: ANTI-TERRORISM AND FORCE PROTECTION

Place of Performance

Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: ANTI-TERRORISM AND FORCE PROTECTION Key points: 1. The contract value is substantial at $307,973,860, reflecting significant investment in force protection. 2. Alliant Techsystems Operations LLC is the sole awardee, indicating a specific capability or long-term relationship. 3. The contract spans over 15 years, suggesting a need for sustained anti-terrorism infrastructure. 4. Industrial building construction is the primary focus, highlighting physical security enhancements.

Value Assessment

Rating: fair

The contract type is 'COST NO FEE', which can sometimes lead to less price discipline compared to fixed-price contracts. The duration and scale suggest a need for specialized construction services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Despite being awarded to a single entity, the contract was initially competed under 'FULL AND OPEN COMPETITION'. This suggests that while Alliant Techsystems is the current performer, the initial award process allowed for broad participation.

Taxpayer Impact: The long duration and significant value mean taxpayers are committed to this spending over an extended period, requiring ongoing justification for its necessity and cost-effectiveness.

Public Impact

Enhances security infrastructure for military and government facilities. Supports national defense objectives by providing critical anti-terrorism capabilities. Contributes to the construction sector and related industries. Ensures readiness and protection against evolving threats.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may reduce flexibility to adapt to changing needs or technologies.
Cost-plus contract type can incentivize spending without direct cost savings.
Lack of ongoing competition for task orders could lead to price creep.

Positive Signals

Addresses critical national security needs for anti-terrorism.
Awarded through full and open competition initially.
Provides specialized construction services essential for force protection.

Sector Analysis

This contract falls within the Industrial Building Construction sector, supporting defense infrastructure. Spending benchmarks for similar long-term, specialized construction contracts can vary widely based on project scope and location.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The prime contractor, Alliant Techsystems, is a large entity, and it's unclear if they are utilizing small business subcontractors.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for oversight. However, the long duration and cost-plus nature warrant close monitoring to ensure efficiency and prevent waste.

Related Government Programs

Industrial Building Construction
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Long contract duration (15 years) limits flexibility.
Cost-plus contract type may lead to higher costs.
Lack of small business participation noted.
Potential for price creep without ongoing competition.
Contract performance is in West Virginia, potentially limiting broader applicability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. ANTI-TERRORISM AND FORCE PROTECTION

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 $30.8 million.

What is the period of performance?

Start: 2009-09-30. End: 2024-11-18.

What specific anti-terrorism and force protection measures are being implemented through this industrial construction contract, and how do they align with current threat assessments?

The contract likely involves the construction or upgrade of physical security infrastructure such as blast-resistant buildings, enhanced perimeter security, access control points, and potentially specialized facilities for threat detection or response. The specific measures would be detailed in task orders and would need to align with evolving threat assessments provided by intelligence agencies and DoD security directives to ensure effectiveness.

Given the 'COST NO FEE' contract type and its 15-year duration, what mechanisms are in place to ensure cost control and prevent potential overruns or inefficiencies?

While 'COST NO FEE' contracts aim to cover allowable costs, the absence of a fee can sometimes reduce the contractor's incentive for aggressive cost management. Oversight by DCMA is crucial, focusing on auditing costs, ensuring compliance with contract terms, and validating the necessity of expenditures. Periodic reviews and potential renegotiation points, if contractually allowed, could also help manage costs over the long term.

How does the sustained, long-term investment in this specific construction contract contribute to the overall effectiveness and adaptability of the DoD's anti-terrorism strategy?

This contract provides a stable, long-term capability for building and maintaining critical anti-terrorism infrastructure, ensuring consistent physical security. However, its effectiveness and adaptability depend on how well the construction projects incorporate flexible designs and future-proofing measures. The DoD must ensure that the constructed facilities can be readily updated or repurposed as threat landscapes and security requirements evolve over the 15-year period.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR RESTOR ACVIVS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002409R4415

Offers Received: 1

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,797,386

Exercised Options: $30,797,386

Current Obligation: $30,797,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline