DoD's $30.7M Excalibur 155mm Increment IB contract awarded to Alliant Techsystems Operations LLC

Contract Overview

Contract Amount: $30,773,096 ($30.8M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-26

End Date: 2010-08-25

Contract Duration: 698 days

Daily Burn Rate: $44.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COMBINATION (TWO OR MORE)

Sector: Defense

Official Description: EXCALIBUR 155MM INCREMENT IB

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $30.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: EXCALIBUR 155MM INCREMENT IB Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Full and open competition indicates a broad market search. 3. Contract duration of 698 days suggests a focused, short-term R&D effort. 4. Award type 'DCA' (Defense Contract Audit Agency) implies financial oversight. 5. The contract value is relatively modest for a defense R&D project of this nature. 6. No small business set-aside was utilized, suggesting large prime contractor involvement.

Value Assessment

Rating: fair

Benchmarking the value of this specific R&D contract is challenging without detailed technical specifications and performance metrics. However, the $30.7 million award over approximately two years for a specialized munitions development program appears within a reasonable range for early-stage research and development. Comparisons to similar advanced munitions R&D efforts would be necessary for a more precise value assessment. The absence of detailed cost breakdowns makes it difficult to assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that the Department of Defense sought proposals from all responsible sources. The presence of three bidders indicates a competitive environment for this specialized R&D requirement. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of Defense, specifically the Army, through advancements in artillery capabilities. The contract supports the development of advanced munitions, potentially enhancing battlefield effectiveness. Geographic impact is likely concentrated around research facilities and manufacturing sites involved in the project. Workforce implications include specialized engineers, scientists, and technicians in the defense R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the true value and success of the R&D effort.
Limited public information on the specific technological advancements sought could obscure potential risks.
The relatively short contract duration might indicate a phased approach, with future funding dependent on initial success, posing a risk of program discontinuity.

Positive Signals

Awarded under full and open competition, suggesting a robust market engagement.
The contractor, Alliant Techsystems Operations LLC, has a significant presence in defense contracting, implying experience.
The contract is for research and development, indicating investment in future military capabilities.

Sector Analysis

This contract falls within the Defense Research and Development sector, specifically focusing on advanced munitions. The market for such specialized R&D is typically dominated by a few large defense contractors with the requisite expertise and facilities. Spending in this area is driven by evolving military requirements and technological advancements. Comparable spending benchmarks would involve looking at other advanced munitions development programs within the DoD.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor is a large entity. This suggests that the primary focus was on securing specialized R&D capabilities from established defense firms. There is no direct indication of subcontracting opportunities for small businesses within the provided data, though it is common for large defense contracts to include subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically involve the Defense Contract Management Agency (DCMA) and potentially the Defense Contract Audit Agency (DCAA) for financial reviews. The Department of the Army Contracting Command would also oversee contract performance. Transparency is limited by the nature of defense R&D, but contract awards and basic details are publicly available through federal procurement databases.

Related Government Programs

Advanced Munitions Development
Precision Guided Munitions
Artillery Systems R&D
Department of Defense Research and Development

Risk Flags

Potential for cost overruns in R&D
Risk of technological obsolescence
Dependency on future funding phases
Limited public detail on specific R&D outcomes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. EXCALIBUR 155MM INCREMENT IB

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 Army).

What is the total obligated amount?

The obligated amount is $30.8 million.

What is the period of performance?

Start: 2008-09-26. End: 2010-08-25.

What is the specific technological advancement sought by the Excalibur 155mm Increment IB program?

The Excalibur 155mm Increment IB program is part of the broader Excalibur artillery projectile development initiative. Increment IB specifically aimed to enhance the capabilities of the M982 Excalibur, a GPS-guided, extended-range artillery projectile. While precise technical details of Increment IB are often classified or proprietary, the general goal was to improve accuracy, range, or introduce new functionalities to the existing Excalibur munition, likely focusing on guidance, control, or payload enhancements to meet evolving battlefield requirements and counter emerging threats.

How does the $30.7 million contract value compare to other advanced munitions R&D contracts?

The $30.7 million contract value for the Excalibur 155mm Increment IB appears to be a moderate investment for a specific phase of advanced munitions R&D. Larger, multi-year programs for developing entirely new weapon systems or significant upgrades can easily reach hundreds of millions or even billions of dollars. However, for a specific increment or research phase focused on particular enhancements to an existing system like Excalibur, $30.7 million over approximately two years is within a plausible range. It suggests a focused effort on a defined set of research objectives rather than a full-system development.

What are the key risks associated with this type of defense R&D contract?

Key risks for defense R&D contracts like this include technological uncertainty, where the desired advancements may prove unachievable or excessively costly. Programmatic risks involve potential budget cuts, shifting military priorities, or contractor performance issues. Schedule risks are also common, as R&D projects often encounter unforeseen delays. Furthermore, there's a risk that the developed technology may become obsolete before deployment or fail to provide a significant operational advantage over existing or competitor systems. Ensuring effective oversight and realistic milestone setting is crucial to mitigate these risks.

What is Alliant Techsystems Operations LLC's track record with similar defense contracts?

Alliant Techsystems Operations LLC (now part of Northrop Grumman) has a substantial track record in defense contracting, particularly in areas related to munitions, aerospace, and defense electronics. They have been a key player in developing and producing various advanced weapon systems and components for the U.S. military. Their experience includes work on guided munitions, propulsion systems, and other complex defense technologies. This background suggests they possess the technical expertise and program management capabilities necessary for undertaking advanced R&D projects like the Excalibur Increment IB.

What does the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code imply for this contract?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates that the core activity of this contract involves scientific research and experimental development. This means the work is focused on discovering new knowledge, creating new or improved products, or developing new processes. It distinguishes the contract from manufacturing, procurement, or basic services, emphasizing the innovative and exploratory nature of the work being funded, likely involving theoretical analysis, experimentation, and prototyping within the physical and engineering domains relevant to advanced munitions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W15QKN08R0345

Offers Received: 3

Pricing Type: COMBINATION (TWO OR MORE) (2)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: 4700 NATHAN LANE NORTH, MINNEAPOLIS, MN, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $30,773,096

Exercised Options: $30,773,096

Current Obligation: $30,773,096

Contract Characteristics

Cost or Pricing Data: NO

Timeline