Navy Awards $27.5M for MJU-61 Flare Infrared Countermeasures, With 2 Bids Received

Contract Overview

Contract Amount: $27,540,582 ($27.5M)

Contractor: Kilgore Flares Company LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-14

End Date: 2024-06-30

Contract Duration: 655 days

Daily Burn Rate: $42.0K/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

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to KILGORE FLARES COMPANY LLC for work described as: MJU-61 FLARE INFRARED COUNTERMEASURE Key points: 1. Contract value of $27.5M for infrared countermeasures suggests a significant need for advanced defense capabilities. 2. The fixed-price contract type indicates a clear understanding of scope and cost expectations. 3. Competition was robust with 2 bidders, potentially leading to favorable pricing for the government. 4. The contract duration of over 650 days points to a sustained requirement for these critical supplies. 5. Awarded by the Department of the Navy, this contract directly supports naval aviation readiness. 6. The manufacturing sector for chemical products is specialized, highlighting the importance of experienced suppliers.

Value Assessment

Rating: good

The contract value of $27.5M for MJU-61 FLARE INFRARED COUNTERMEASURES appears reasonable given the specialized nature of the product. Benchmarking against similar defense procurement for flares and countermeasures would provide a more precise value assessment. The firm fixed-price structure suggests that pricing was determined upfront, which can be advantageous when the scope is well-defined. However, without specific per-unit cost data or comparisons to other similar contracts, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders, the competition level was moderate. While two bidders are better than one, a higher number of bids typically leads to more aggressive pricing and a wider range of innovative solutions. The presence of two bidders suggests that the market for these specific countermeasures is somewhat concentrated, but still allows for price discovery.

Taxpayer Impact: The full and open competition with two bidders likely resulted in a competitive price for taxpayers, avoiding potential overpayment associated with sole-source or limited competition awards. This level of competition helps ensure that taxpayer funds are used efficiently for essential defense materiel.

Public Impact

Naval aviation units will benefit from enhanced survivability through the provision of advanced infrared countermeasures. The services delivered include the manufacturing and supply of critical MJU-61 FLARE INFRARED COUNTERMEASURES. The geographic impact is primarily on naval bases and operational theaters where these aircraft are deployed. Workforce implications include jobs in specialized chemical product manufacturing and defense supply chain logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if only two manufacturers can produce these specialized flares.
Dependence on a limited number of suppliers could lead to price increases in future procurements.
Ensuring consistent quality control across different batches of specialized chemical products is crucial.

Positive Signals

Award under full and open competition suggests a healthy market for this type of defense product.
Firm fixed-price contract provides cost certainty for the Department of the Navy.
The contract duration indicates a stable and predictable supply chain for a critical defense item.

Sector Analysis

The defense sector for specialized chemical products, such as infrared countermeasures, is a niche but critical market. Companies operating in this space require advanced manufacturing capabilities and adherence to stringent quality and safety standards. The market size for such specific defense components is directly tied to military procurement budgets and strategic defense priorities. This contract fits within the broader category of aerospace and defense manufacturing, specifically focusing on electronic warfare and survivability equipment. Comparable spending benchmarks would involve analyzing other contracts for similar defensive flares and countermeasures across different military branches.

Small Business Impact

There is no indication that this contract included a small business set-aside. The primary contractor, KILGORE FLARES COMPANY LLC, is likely a large business given the contract value. Subcontracting opportunities for small businesses may exist within the supply chain for raw materials or components, but this is not explicitly detailed in the award information. The impact on the small business ecosystem would depend on whether KILGORE FLARES COMPANY LLC actively engages small businesses for subcontracting roles.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified goods within the agreed-upon price. Transparency is provided through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

MJU-7/B FLARE INFRARED COUNTERMEASURE
MJU-23/B FLARE INFRARED COUNTERMEASURE
Defense Ammunition Procurement
Naval Aviation Support Equipment
Aerospace and Defense Manufacturing

Risk Flags

Limited competition (2 bidders)
Potential supply chain concentration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 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 $27.5 million.

What is the period of performance?

Start: 2022-09-14. End: 2024-06-30.

What is the historical spending pattern for MJU-61 FLARE INFRARED COUNTERMEASURES by the Department of the Navy?

Historical spending data for the MJU-61 FLARE INFRARED COUNTERMEASURES by the Department of the Navy indicates a consistent requirement for this specific type of countermeasure. Prior to this $27.5 million award, there may have been previous contracts for the same or similar flares, reflecting ongoing operational needs. Analyzing contract databases would reveal the frequency and value of past awards, helping to establish a baseline for current spending. For instance, if similar awards were made annually or biennially, it suggests a recurring procurement cycle. Understanding this pattern is crucial for forecasting future budgetary needs and assessing the current award's alignment with historical investment in this capability. The current award's value should be compared against previous contract values to identify any significant increases or decreases, which could be attributed to market fluctuations, increased demand, or changes in technology.

How does the per-unit cost of the MJU-61 FLARE INFRARED COUNTERMEASURE compare to similar products from other manufacturers?

Determining the exact per-unit cost of the MJU-61 FLARE INFRARED COUNTERMEASURE is challenging without access to the detailed pricing breakdown within the contract. However, the total award of $27.5 million for an unspecified quantity of flares allows for an estimated average cost per unit if the quantity were known. To compare this to similar products, one would need to identify other infrared flares used by the military, such as the MJU-7 or other national stock numbers (NSNs) for flares, and find their contract award data. Benchmarking would involve looking at the per-unit prices from recent competitive awards for these comparable items. If the MJU-61's estimated per-unit cost is significantly higher or lower than these benchmarks, it could indicate differences in technology, performance specifications, manufacturing complexity, or simply market pricing dynamics. A higher cost might be justified by superior performance, while a significantly lower cost could suggest efficient production or a highly competitive bidding environment.

What are the key performance requirements and specifications for the MJU-61 FLARE INFRARED COUNTERMEASURE?

The MJU-61 FLARE INFRARED COUNTERMEASURE is designed to protect aircraft from infrared-guided missiles by deploying flares that emit intense heat, thereby decoy the missile's seeker. Key performance requirements typically include a specific spectral output to match aircraft engine heat signatures, a minimum burn time to ensure effective decoy, a rapid deployment capability, and reliability under various environmental conditions (temperature, humidity, altitude). The specifications would detail the physical dimensions, weight, shelf life, and safety certifications required. For instance, the flare must generate sufficient infrared radiation in the specific wavelengths that heat-seeking missiles are most sensitive to, and it must burn long enough to provide a sustained decoy effect. Reliability is paramount, as these are life-saving devices; failure to deploy or function correctly could have catastrophic consequences. The Department of the Navy would have established stringent technical requirements in the solicitation that bidders must meet.

What is the track record of KILGORE FLARES COMPANY LLC in delivering defense-related products, particularly flares and countermeasures?

KILGORE FLARES COMPANY LLC has a significant track record in the defense industry, specializing in the manufacture of flares and countermeasures. As a long-standing supplier to the U.S. military, the company has produced various types of flares, including infrared countermeasures, for different platforms and services. Their experience likely encompasses meeting stringent military specifications, managing complex production processes for pyrotechnic devices, and adhering to rigorous quality control standards. Past performance data, often available through government contract databases or contractor performance assessment reporting tools, would detail their history of on-time delivery, product quality, and overall customer satisfaction. Awards like this $27.5 million contract for MJU-61 flares suggest continued confidence from the Department of the Navy in KILGORE's capabilities and reliability as a supplier of critical survivability equipment.

What are the potential risks associated with relying on a limited number of suppliers for infrared countermeasures?

Relying on a limited number of suppliers, such as the two identified in this MJU-61 FLARE INFRARED COUNTERMEASURE procurement, presents several potential risks. Firstly, there is a risk of supply chain disruption. If one of the suppliers experiences production issues, natural disasters, or faces financial difficulties, the availability of these critical countermeasures could be severely impacted, potentially jeopardizing aircraft safety and mission readiness. Secondly, limited competition can lead to reduced price pressure. With fewer bidders, the remaining suppliers may have more leverage to increase prices in future solicitations, leading to higher costs for the government and taxpayers. Thirdly, there's a risk of technological stagnation. A concentrated market might reduce the incentive for suppliers to invest heavily in research and development for next-generation countermeasures if they are assured of continued demand from a small customer base. Finally, national security could be compromised if a critical defense component relies heavily on a small pool of manufacturers, especially if any are located in regions with geopolitical instability.

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

Solicitation ID: N0010421RK015

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie Industrielle DE Delle

Address: 155 KILGORE ROAD, TOONE, TN, 38381

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

Financial Breakdown

Contract Ceiling: $27,540,582

Exercised Options: $27,540,582

Current Obligation: $27,540,582

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0010422DZU01

IDV Type: IDC

Timeline