Army's $26.2M Individual H.E.A.B. Weapon System Technical Development Program awarded to Alliant Techsystems Inc
Contract Overview
Contract Amount: $26,187,898 ($26.2M)
Contractor: Alliant Techsystems Inc
Awarding Agency: Department of Defense
Start Date: 2006-09-22
End Date: 2009-09-30
Contract Duration: 1,104 days
Daily Burn Rate: $23.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: INDIVIDUAL H.E.A.B. WEAPON SYSTEM TECHNICAL DEVELOPMENT PROGRAM
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $26.2 million to ALLIANT TECHSYSTEMS INC for work described as: INDIVIDUAL H.E.A.B. WEAPON SYSTEM TECHNICAL DEVELOPMENT PROGRAM Key points: 1. The contract was awarded on a sole-source basis, raising questions about potential price efficiencies. 2. The duration of the contract was 1104 days, indicating a significant development period. 3. The contract type was Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The award value of $26.2 million for a technical development program suggests a focused scope. 5. The program falls under the Small Arms, Ordnance, and Ordnance Accessories Manufacturing sector.
Value Assessment
Rating: questionable
Benchmarking the value of this specific technical development program is challenging without detailed cost breakdowns and comparisons to similar R&D efforts. The Cost Plus Fixed Fee contract type, while common for development, carries inherent risks of cost escalation. The absence of competition further complicates a direct value assessment, as there was no market pressure to drive down costs. The total award value of $26.2 million appears moderate for a multi-year weapon system development program, but its true value for money depends on the successful technical outcomes achieved.
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 a specific contractor possesses unique capabilities or when the requirement is urgent and only one source can fulfill it. The lack of competition means there was no opportunity for price discovery through bidding, potentially leading to higher costs for the government compared to a fully competed contract. The rationale for sole-sourcing this technical development program is not detailed in the provided data.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without a competitive process, there is less assurance that the government secured the best possible price for the services rendered.
Public Impact
The primary beneficiaries are the Department of the Army, which receives the technical development for the H.E.A.B. weapon system. The services delivered include technical development and research related to a new weapon system. The geographic impact is primarily within Minnesota, where Alliant Techsystems Inc. is located. Workforce implications include specialized engineering and technical roles within Alliant Techsystems Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
- Cost Plus Fixed Fee contract type can incentivize cost overruns if not rigorously managed.
- Lack of transparency regarding the justification for sole-sourcing raises accountability concerns.
Positive Signals
- Award to a known entity, Alliant Techsystems Inc., suggests a potentially experienced contractor.
- Technical development programs are crucial for advancing military capabilities.
Sector Analysis
The defense industrial base, specifically the segment focused on small arms and ordnance manufacturing, is characterized by specialized expertise and significant R&D investment. Contracts like this are vital for maintaining technological superiority and ensuring the readiness of armed forces. The market for such systems is often dominated by a few key players due to high barriers to entry, including intellectual property, manufacturing capabilities, and security clearances. The $26.2 million award is a moderate investment within the broader context of defense procurement, which can run into billions for major weapon systems.
Small Business Impact
This contract was not set aside for small businesses, nor does it indicate any subcontracting requirements for small businesses. The award went to a large prime contractor, Alliant Techsystems Inc. This suggests that the primary focus was on the prime contractor's capabilities for this specific technical development program, with limited direct implications for the small business ecosystem unless subcontracting opportunities arise organically from the prime's execution.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the Department of Defense's contracting officers and program managers. Accountability measures would be tied to the achievement of technical milestones outlined in the Cost Plus Fixed Fee contract. Transparency is limited by the sole-source nature of the award and the proprietary nature of weapon system development. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse.
Related Government Programs
- Individual Weapon System Development Programs
- Small Arms and Ordnance Procurement
- Department of the Army Research and Development Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Sole-source award
- Cost Plus Fixed Fee contract type
- Lack of detailed justification for sole-sourcing
Tags
defense, department-of-defense, department-of-the-army, weapon-system-development, sole-source, cost-plus-fixed-fee, alliant-techsystems-inc, small-arms-ordnance, technical-development, minnesota, research-and-development
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.2 million to ALLIANT TECHSYSTEMS INC. INDIVIDUAL H.E.A.B. WEAPON SYSTEM TECHNICAL DEVELOPMENT PROGRAM
Who is the contractor on this award?
The obligated recipient is ALLIANT TECHSYSTEMS INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $26.2 million.
What is the period of performance?
Start: 2006-09-22. End: 2009-09-30.
What was the specific technical objective of the INDIVIDUAL H.E.A.B. WEAPON SYSTEM TECHNICAL DEVELOPMENT PROGRAM?
The provided data does not detail the specific technical objectives of the INDIVIDUAL H.E.A.B. WEAPON SYSTEM TECHNICAL DEVELOPMENT PROGRAM. However, as a 'Technical Development Program' awarded to 'ALLIANT TECHSYSTEMS INC' by the Department of the Army, it can be inferred that the program aimed to research, design, prototype, and test key technologies or components for a new individual weapon system. This phase is critical in the defense acquisition lifecycle, bridging the gap between basic research and full-scale engineering and production, focusing on proving the feasibility and performance of critical technologies before committing to a full program.
How does the $26.2 million award value compare to similar weapon system technical development programs?
Direct comparison of the $26.2 million award value for the INDIVIDUAL H.E.A.B. WEAPON SYSTEM TECHNICAL DEVELOPMENT PROGRAM is difficult without access to a comprehensive database of similar programs and their specific scopes. However, for a multi-year technical development phase of a weapon system, this value appears moderate. Larger, more complex systems (e.g., aircraft, major ground vehicles) often involve significantly higher R&D investments, potentially in the hundreds of millions or billions. Conversely, simpler weapon systems or component developments might have lower R&D costs. The 'HEAB' acronym might denote a specific type or caliber of weapon, influencing the program's scale and cost.
What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract for weapon system development?
The Cost Plus Fixed Fee (CPFF) contract type, used for this program, presents specific risks. While it provides the contractor with a guaranteed profit (the fixed fee) regardless of the final cost, it shifts the primary risk of cost overruns to the government. The contractor is incentivized to control costs to some extent to ensure the project remains within scope, but the government bears the burden of actual costs incurred. For complex R&D like weapon system development, unforeseen technical challenges can significantly increase costs, leading to the government paying more than initially anticipated. Effective oversight and robust cost-reimbursement controls are crucial to mitigate these risks.
What is the significance of this contract being awarded on a sole-source basis?
A sole-source award signifies that the contract was not competed, meaning only one contractor, Alliant Techsystems Inc., was solicited and awarded the contract. This typically occurs when the agency determines that only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, or urgent needs. The primary implication for taxpayers is the potential for higher costs, as the absence of competition removes the downward price pressure that multiple bids would create. It also raises questions about whether a competitive process was adequately explored or justified.
What is Alliant Techsystems Inc.'s track record with the Department of Defense, particularly in weapon system development?
Alliant Techsystems Inc. (now part of Northrop Grumman) has a long and extensive history of contracting with the Department of Defense, particularly in areas related to aerospace, defense electronics, and munitions. They have been a significant player in developing and manufacturing various weapon systems, including small arms, guided munitions, and propulsion systems. Their track record generally indicates substantial experience and capability in complex defense programs. However, the success and cost-effectiveness of any specific contract, like the INDIVIDUAL H.E.A.B. WEAPON SYSTEM TECHNICAL DEVELOPMENT PROGRAM, depend on the details of that particular project's execution and management.
How does this contract fit into the broader historical spending patterns for small arms and ordnance by the Department of the Army?
This $26.2 million technical development program represents a specific investment in the future capabilities of small arms and ordnance. Historical spending in this category by the Department of the Army fluctuates based on modernization needs, threat assessments, and budget allocations. Development programs like this are typically a smaller portion of the overall budget compared to procurement of fielded systems. However, successful development is crucial for future procurement. Analyzing this contract's value in isolation is difficult; it needs to be viewed within the context of the Army's long-term strategic goals for infantry weapons and the overall trend of R&D spending versus procurement spending over several fiscal years.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
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
Address: 4700 NATHAN LN N, PLYMOUTH, MN, 03
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $29,382,245
Exercised Options: $29,382,245
Current Obligation: $26,187,898
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-22
Current End Date: 2009-09-30
Potential End Date: 2009-09-30 00:00:00
Last Modified: 2009-09-15
More Contracts from Alliant Techsystems Inc
- 200510!500526!2100!w15qkn!tacom - Picatinny !w15qkn05c1171 !A!N! !N! ! !20041201!20081201!133851175!133851175!618705925!n!alliant Integrated Defense COM!4700 Nathan LN N !minneapolis !mn!55442!51730!053!27!plymouth !hennepin !minnesota !+000032000000!n!n!000063394088!ad13!rdte/Ammunition-Adv Tech DEV !A6 !ammunition !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !a!u!v!2!002!b! !Z!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! !Y! ! !0001! ! — $139.0M (Department of Defense)
- UCA Executed — $116.6M (Department of Defense)
- 200607!600629!2100!w15qkn!tacom - Picatinny !w15qkn06c0139 !A!N! !N! ! !20060329!20061130!133851175!133851175!618705925!n!alliant Techsystems Inc !4700 Nathan LN N !plymouth !mn!55442!51730!053!27!plymouth !hennepin !minnesota !+000010529310!n!n!000010529310!1315!ammunition, 75 MM Through 125 MM !A6 !ammunition !000 !NOT Discernable !332993!E! !1! ! ! ! ! !99990909!B! ! !A! !c!u!j!2!001!n!3a!z!y!a! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! ! ! ! !0001! ! — $50.0M (Department of Defense)
- 199910!1700!2497!bw10a!naval Surface Warfare Center, Da!n0017899c1003 !A!*!* !19990730!20030930!825057656!825057656!618705925!n!18356!alliant Techsystems Inc !340 N Franklin ST !janesville !wi!53545!37825!105!55!janesville !rock !wisconsin !0001!+000021806473!n!n!000000000000!1310!ammunition, Over 30 MM UP to 75 MM !A6 !ammunition !2000!NOT Discernable or Classified !3483!3!*!*!*!B!A!*!D !n!l!1!001!n!1a!a!y!z!* !* !n!c!*!a!a!a!a!a!*!* !*!n!a!c!n!*!*!*!*!*! — $27.9M (Department of Defense)
- Federal Contract — $27.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)