DoD's $13.4M Kestrel Ramjet Test Contract Awarded to Alliant Techsystems Operations LLC

Contract Overview

Contract Amount: $13,381,990 ($13.4M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2025-01-16

End Date: 2026-02-15

Contract Duration: 395 days

Daily Burn Rate: $33.9K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: KESTREL SOLID FUEL RAMJET TESTING

Place of Performance

Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.4 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: KESTREL SOLID FUEL RAMJET TESTING Key points: 1. Contract value of $13.4M for solid fuel ramjet testing. 2. Alliant Techsystems Operations LLC is the sole awardee. 3. Potential risks include reliance on a single provider and cost overruns. 4. The sector is Defense, specifically engineering services for the Navy.

Value Assessment

Rating: fair

The contract is Cost Plus Fixed Fee, which can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in a higher price than if multiple vendors had bid, impacting taxpayer value.

Public Impact

Advanced propulsion system development for potential future military applications. Investment in cutting-edge defense technology. Impact on the aerospace and defense industry supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition.
Cost-plus contract type can increase risk.
Limited public information on specific testing objectives.

Positive Signals

Supports critical defense research and development.
Award to established defense contractor.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense technology. Spending benchmarks for specialized R&D like ramjet testing are highly variable and depend on technological complexity.

Small Business Impact

The awardee is a large business, and there is no indication of small business participation in this specific contract. Opportunities for small businesses may lie in subcontracting roles.

Oversight & Accountability

Oversight will be crucial given the sole-source nature and cost-plus contract type to ensure efficient use of funds and achievement of testing objectives.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award
Cost-plus contract type
Potential for cost overruns
Limited competition
Reliance on single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.4 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. KESTREL SOLID FUEL RAMJET TESTING

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 $13.4 million.

What is the period of performance?

Start: 2025-01-16. End: 2026-02-15.

What is the expected technological advancement from these ramjet tests and how does it align with current defense modernization priorities?

The ramjet testing aims to advance solid fuel propulsion technology, potentially leading to more efficient and powerful missile systems. This aligns with defense modernization efforts focused on enhancing standoff capabilities and reducing reliance on liquid fuels, offering strategic advantages in future combat scenarios.

What are the specific risks associated with relying on a single contractor for this critical technology development?

The primary risks include a lack of competitive pressure on pricing and innovation, potential for vendor lock-in, and vulnerability if the sole contractor faces financial or operational difficulties. This could delay development or increase overall program costs without alternative options.

How will the effectiveness of the ramjet testing be measured to ensure taxpayer value is achieved?

Effectiveness will likely be measured against pre-defined performance metrics and milestones outlined in the contract. This includes successful ignition, sustained burn time, thrust levels, and integration with target systems. Regular technical reviews and independent assessments will ensure progress and validate results.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6893619R0027

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: $13,381,990

Exercised Options: $13,381,990

Current Obligation: $13,381,990

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $4,772,540

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6893620D0024

IDV Type: IDC

Timeline