DoD's $51.3M MJU-61 Flare Contract Awarded to Kilgore Flares for Infrared Countermeasures
Contract Overview
Contract Amount: $51,331,160 ($51.3M)
Contractor: Kilgore Flares Company LLC
Awarding Agency: Department of Defense
Start Date: 2020-03-30
End Date: 2025-05-31
Contract Duration: 1,888 days
Daily Burn Rate: $27.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MJU-61 FLARE INFRARED COUNTERMEASURE
Place of Performance
Location: TOONE, HARDEMAN County, TENNESSEE, 38381
Plain-Language Summary
Department of Defense obligated $51.3 million to KILGORE FLARES COMPANY LLC for work described as: MJU-61 FLARE INFRARED COUNTERMEASURE Key points: 1. Contract value of $51.3M over its period of performance. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract is for infrared countermeasures, a critical defense component. 4. The contractor, Kilgore Flares Company LLC, is based in Tennessee. 5. The contract duration is 1888 days, spanning from March 2020 to May 2025. 6. This award represents a significant investment in aviation survivability systems.
Value Assessment
Rating: good
The contract value of $51.3M for infrared countermeasures appears reasonable given the duration and nature of the product. Benchmarking against similar defense contracts for specialized flares suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it places cost risk on the contractor. Without specific per-unit cost data, a precise value-for-money assessment is challenging, but the competitive award process supports a presumption of fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The presence of two bids indicates a degree of competition, which generally leads to better price discovery and potentially lower costs for the government. The specific number of bidders (2) is on the lower side for a full and open competition, which could warrant further investigation into market dynamics or barriers to entry.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. The existence of multiple bids suggests that the government received competitive offers, likely resulting in a more favorable price than a sole-source award.
Public Impact
The primary beneficiaries are U.S. military aviation units requiring advanced infrared countermeasures for survivability. The contract delivers essential MJU-61 flares, designed to protect aircraft from heat-seeking missiles. Geographic impact is national, supporting deployed forces globally. Workforce implications include skilled manufacturing jobs at Kilgore Flares Company LLC in Tennessee.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders (2) in a full and open competition could indicate potential market concentration or barriers to entry.
- Firm fixed-price contract places cost risk on the contractor, which could lead to quality compromises if not managed closely.
- Long contract duration (1888 days) requires sustained oversight to ensure ongoing performance and value.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process.
- Contractor is a known entity in the defense supply chain for flares.
- Firm fixed-price contract provides budget certainty for the Department of Defense.
- Product is critical for aviation survivability, addressing a key military need.
Sector Analysis
The defense sector for aerospace and defense components, particularly electronic warfare and survivability systems, is characterized by high technological barriers and specialized manufacturing. The market for infrared countermeasures is relatively concentrated, with a few key suppliers dominating. This contract fits within the broader category of aircraft armament, subsystems, and components, where spending is consistently high due to the critical nature of these assets. Comparable spending benchmarks would involve analyzing other contracts for similar flare types or electronic countermeasures.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The prime contractor, Kilgore Flares Company LLC, is likely a large business. The absence of small business set-asides means that opportunities for small businesses to directly participate in this specific contract are limited, though they may supply components or services to the prime contractor.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Aircraft Armament Contracts
- Naval Aviation Support Systems
- Infrared Countermeasure Systems
- Aerospace Manufacturing Contracts
Risk Flags
- Potential for supply chain vulnerabilities
- Risk of performance degradation over long contract duration
- Limited competition (2 bidders) may indicate market concentration
Tags
defense, department-of-defense, department-of-the-navy, infrared-countermeasures, aviation-ordnance, full-and-open-competition, firm-fixed-price, kilgore-flares-company-llc, tennessee, mju-61, countermeasures, aircraft-survivability
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $51.3 million to KILGORE FLARES COMPANY LLC. MJU-61 FLARE INFRARED COUNTERMEASURE
Who is the contractor on this award?
The obligated recipient is KILGORE FLARES COMPANY 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 $51.3 million.
What is the period of performance?
Start: 2020-03-30. End: 2025-05-31.
What is the track record of Kilgore Flares Company LLC in fulfilling defense contracts, particularly for flares?
Kilgore Flares Company LLC has a history of supplying flares and related pyrotechnic products to the U.S. military. As a specialized manufacturer, their track record is generally tied to their ability to meet stringent military specifications and delivery schedules. While specific performance metrics for past contracts are not detailed here, their continued selection for significant awards like this one suggests a satisfactory performance history. However, a deeper dive into past contract performance reports, any past performance issues, or awards/debarments would provide a more comprehensive understanding of their reliability and quality.
How does the $51.3M contract value compare to historical spending on similar infrared countermeasures?
The $51.3M contract value for MJU-61 flares represents a substantial, but not necessarily outlier, investment. Historical spending on infrared countermeasures can fluctuate based on technological advancements, threat assessments, and fleet modernization programs. To provide a precise comparison, one would need to analyze spending trends for similar flare types (e.g., MJU-61, ALE-50, etc.) over the past 5-10 years across different military branches. Factors such as quantity ordered, specific technical requirements, and the competitive landscape at the time of prior awards would influence those figures. This contract's value appears consistent with the high-cost, specialized nature of advanced defense matériel.
What are the primary risks associated with this contract, and how are they mitigated?
Key risks include potential supply chain disruptions for raw materials, manufacturing defects impacting flare performance, and schedule delays. Mitigation strategies involve the firm fixed-price structure, which incentivizes the contractor to manage costs and schedules effectively. The Department of the Navy's oversight, including quality assurance inspections and performance monitoring, is crucial. Furthermore, the competitive award process itself mitigates some risk by selecting a contractor presumed to have the capability to perform. Contingency planning by the contractor and robust government oversight are essential to address unforeseen issues.
How effective are MJU-61 flares in protecting aircraft against modern threats?
MJU-61 flares are designed as expendable infrared countermeasures intended to decoy heat-seeking missiles, a significant threat to aircraft survivability. They function by emitting a strong infrared signature that is more attractive to the missile's seeker than the aircraft's engine heat. Their effectiveness is dependent on the specific missile threat, the flare's spectral characteristics, and the tactics employed by the aircrew. While generally considered effective against many legacy and some modern infrared-guided threats, the continuous evolution of missile technology necessitates ongoing research and development in countermeasure capabilities, including advanced flare designs and alternative countermeasures.
What is the typical market size and competitive landscape for infrared countermeasures?
The market for infrared countermeasures is a specialized segment within the broader aerospace and defense industry. It is characterized by high barriers to entry due to complex technology, stringent qualification requirements, and long product development cycles. The market size is substantial, driven by global defense spending on aviation survivability. Key players often include established defense contractors with expertise in pyrotechnics and electronic warfare. Competition can be limited for highly specialized or proprietary systems, but for standard flare types like the MJU-61, multiple qualified manufacturers may exist, fostering competition when contracts are fully and openly competed.
Industry Classification
NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Compagnie Industrielle DE Delle
Address: 155 KILGORE DR, TOONE, TN, 38381
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $51,331,160
Exercised Options: $51,331,160
Current Obligation: $51,331,160
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0010418DPK01
IDV Type: IDC
Timeline
Start Date: 2020-03-30
Current End Date: 2025-05-31
Potential End Date: 2025-05-31 00:00:00
Last Modified: 2025-05-09
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