DoD's $20.2M R&D Contract for Target Activation Awarded to Alliant Techsystems in 2008

Contract Overview

Contract Amount: $20,122,514 ($20.1M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-28

End Date: 2014-03-31

Contract Duration: 2,194 days

Daily Burn Rate: $9.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: R&D - TARGET ACTIVATION

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $20.1 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: R&D - TARGET ACTIVATION Key points: 1. The contract, valued at $20.2 million, was awarded to Alliant Techsystems Operations LLC. 2. This was a definitive contract for explosives manufacturing, indicating a specialized need. 3. The contract duration was 2194 days, suggesting a long-term R&D project. 4. The award was not competed, raising questions about potential price discovery. 5. The contract type was Cost Plus Incentive Fee, which can incentivize cost control but also carries risk.

Value Assessment

Rating: questionable

The Cost Plus Incentive Fee structure can lead to costs exceeding initial estimates if not managed tightly. Benchmarking this specific R&D effort against similar contracts is difficult due to its specialized nature.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition scenario. This lack of competition may have limited price discovery and potentially led to a higher price than if multiple vendors had bid.

Taxpayer Impact: Without competitive bidding, taxpayers may have paid a premium for this R&D, as the government did not benefit from market-driven price reductions.

Public Impact

Taxpayers funded a significant R&D effort in explosives manufacturing for the Department of Defense. The long contract duration suggests a substantial investment in developing or refining target activation technology. The lack of competition raises concerns about the government's ability to secure the best possible price. The use of a Cost Plus Incentive Fee contract type requires careful oversight to ensure cost efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Cost Plus Incentive Fee contract type
Potential for cost overruns
Limited transparency on pricing justification

Positive Signals

Awarded to a known defense contractor
Long-term commitment to R&D
Specific focus on explosives manufacturing

Sector Analysis

This contract falls within the Research & Development sector, specifically focusing on explosives manufacturing for the Department of Defense. R&D spending can vary widely, but significant investments are common in defense for technological advancement.

Small Business Impact

The contract was awarded to Alliant Techsystems Operations LLC, a large defense contractor. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The Cost Plus Incentive Fee contract type necessitates robust oversight from the Defense Contract Management Agency to monitor costs, performance, and ensure the incentive fee structure is achieving its intended goals without excessive spending.

Related Government Programs

Explosives Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competitive bidding
Potential for cost overruns due to CPIF structure
Limited transparency on specific R&D outcomes
Long contract duration without clear interim milestones
High contract value for a non-competed R&D effort

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.1 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. R&D - TARGET ACTIVATION

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 $20.1 million.

What is the period of performance?

Start: 2008-03-28. End: 2014-03-31.

What was the specific R&D objective for target activation, and how did it align with DoD's strategic goals?

The specific R&D objective for target activation likely involved enhancing the effectiveness, safety, or range of explosive devices used for military targets. This would align with DoD's strategic goals of maintaining technological superiority and improving operational capabilities in the field.

What justification was provided for not competing this contract, and what steps were taken to ensure fair and reasonable pricing?

The justification for not competing would typically stem from unique capabilities, urgent needs, or specific government-owned intellectual property. To ensure fair pricing, the government likely conducted a price analysis based on historical data, cost breakdowns from the contractor, or comparisons to similar, albeit potentially non-identical, services.

How effectively did the Cost Plus Incentive Fee structure incentivize Alliant Techsystems to control costs while meeting performance requirements?

The effectiveness of the CPIF structure hinges on the clarity and achievability of the target cost and incentive goals. If well-defined, it should encourage efficiency. However, without detailed performance reports and cost audits, it's difficult to definitively assess how well it incentivized cost control versus simply allowing for higher costs within the fee structure.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 4700 NATHAN LANE NORTH, MINNEAPOLIS, MN, 55442

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

Financial Breakdown

Contract Ceiling: $20,122,514

Exercised Options: $20,122,514

Current Obligation: $20,122,514

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline