DoD awards $20.4M for MK419 Multi-Function Fuze to Alliant Techsystems, a sole-source contract
Contract Overview
Contract Amount: $20,443,795 ($20.4M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2016-12-22
End Date: 2025-04-30
Contract Duration: 3,051 days
Daily Burn Rate: $6.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PROCUREMENT OF MK419 MULTI FUNCTION FUZE
Place of Performance
Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726
Plain-Language Summary
Department of Defense obligated $20.4 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: PROCUREMENT OF MK419 MULTI FUNCTION FUZE Key points: 1. Contract awarded to a single vendor, raising questions about price competitiveness. 2. The fuze is critical for ammunition, impacting defense readiness. 3. Long contract duration (over 8 years) may not reflect current market conditions. 4. No small business participation noted in this significant award.
Value Assessment
Rating: questionable
The contract's value of $20.4M over 8 years lacks a clear benchmark due to its sole-source nature. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar fuze procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Alliant Techsystems Operations LLC. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $20.4M contract means taxpayers may be paying a premium for the MK419 Multi-Function Fuze.
Public Impact
Ensures availability of a critical component for military munitions. Potential for inflated costs due to lack of competitive bidding. Long-term contract may not adapt to technological advancements or market price shifts. Limited visibility into the specific application and necessity of this fuze model.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration
- No small business participation
Positive Signals
- Ensures supply of critical defense component
- Firm fixed price contract limits cost overrun risk
Sector Analysis
This procurement falls within the Defense sector, specifically ammunition manufacturing. Spending benchmarks for specialized components like fuzes are often proprietary or difficult to ascertain without competitive data.
Small Business Impact
The contract data indicates no small business participation. This suggests that the prime contractor, Alliant Techsystems, is handling the entire scope of work, potentially missing opportunities for small business subcontracting.
Oversight & Accountability
The sole-source nature of this contract warrants scrutiny from oversight bodies to ensure fair pricing and necessity. Regular reviews of contract performance and cost justification would be prudent.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition may lead to overpricing.
- Long contract duration (over 8 years) may not reflect current market value.
- No small business participation identified.
- Potential for vendor lock-in due to sole-source award.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, wv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.4 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. PROCUREMENT OF MK419 MULTI FUNCTION FUZE
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 $20.4 million.
What is the period of performance?
Start: 2016-12-22. End: 2025-04-30.
What is the justification for the sole-source award of the MK419 Multi-Function Fuze contract?
The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without further documentation, the specific reason for not competing this $20.4M contract remains unclear and requires investigation.
How does the $20.4M contract value compare to industry benchmarks for similar multi-function fuzes?
Direct comparison to industry benchmarks is challenging due to the sole-source nature of this contract and the specialized 'MK419 Multi-Function Fuze' designation. Without competitive bids, it's difficult to ascertain if the price reflects market rates. Further analysis would require access to proprietary cost data or comparable sole-source justifications.
What measures are in place to ensure the effectiveness and reliability of the MK419 fuze throughout the contract's duration?
The contract likely includes standard quality assurance clauses and performance specifications mandated by the Department of Defense. The Defense Contract Management Agency (DCMA) would oversee adherence to these requirements. However, the long duration necessitates ongoing monitoring to ensure the fuze remains effective against evolving threats and technological standards.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W15QKN16R0005
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 210 STATE RTE 956, ROCKET CENTER, WV, 26726
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: $20,443,795
Exercised Options: $20,443,795
Current Obligation: $20,443,795
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $3,097,867
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-12-22
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2025-06-20
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