Army Awards $33.5M Explosives Manufacturing Contract to Alliant Techsystems Operations LLC
Contract Overview
Contract Amount: $33,454,972 ($33.5M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2020-06-30
End Date: 2023-10-30
Contract Duration: 1,217 days
Daily Burn Rate: $27.5K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: DELIVERY ORDER 0001
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $33.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: DELIVERY ORDER 0001 Key points: 1. Significant contract value of $33.5 million for explosives manufacturing. 2. Alliant Techsystems Operations LLC is the sole awardee. 3. Potential risk associated with a sole-source award. 4. Spending falls within the manufacturing sector.
Value Assessment
Rating: questionable
The contract value of $33.5 million for explosives manufacturing is substantial. Without comparable contract data or a detailed breakdown of services, it's difficult to assess if this pricing is competitive or represents good value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This limits price discovery and may result in higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this $33.5 million contract raises concerns about potential overspending and reduced value for taxpayer funds.
Public Impact
Ensures supply of essential explosives for military operations. Potential for job creation in Minnesota's manufacturing sector. Lack of competition could lead to higher costs for defense procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of transparency in pricing.
- Potential for cost overruns.
Positive Signals
- Ensures critical supply chain for defense.
- Supports domestic manufacturing capabilities.
Sector Analysis
This contract for explosives manufacturing falls under the broader industrial and manufacturing sector. Benchmarks for similar specialized manufacturing contracts are difficult to ascertain without more specific details on the explosives and their intended use.
Small Business Impact
The awardee, Alliant Techsystems Operations LLC, is not identified as a small business. There is no indication of subcontracting opportunities for small businesses within this data.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential waste. Accountability for the justification of the sole-source procurement is crucial.
Related Government Programs
- Explosives Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on cost justification
Tags
explosives-manufacturing, department-of-defense, mn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. DELIVERY ORDER 0001
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 $33.5 million.
What is the period of performance?
Start: 2020-06-30. End: 2023-10-30.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award is critical for understanding why competition was bypassed. Agencies must demonstrate that only one source can meet the requirement or that competition is not feasible. The process for determining fair and reasonable pricing in such cases typically involves detailed cost analysis, comparison to historical data, or market research, even if limited.
What are the specific types of explosives being manufactured, and are there alternative suppliers available in the market?
Identifying the specific types of explosives is key to assessing market availability and potential competition. If these are highly specialized or proprietary, a sole-source award might be justifiable. However, if they are standard or could be sourced from multiple qualified manufacturers, the lack of competition is a significant concern for cost-effectiveness and supply chain resilience.
What is the long-term strategy for ensuring competitive sourcing of explosives manufacturing to avoid reliance on single suppliers?
A long-term strategy should focus on fostering a competitive market for explosives manufacturing. This could involve market research to identify potential new entrants, investing in training and certification for additional suppliers, or breaking down large requirements into smaller, more competitive contract vehicles. Proactive planning is essential to mitigate risks associated with sole-source dependencies.
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
Solicitation ID: W15QKN19R0105
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 4700 NATHAN LN N, PLYMOUTH, 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: $33,454,972
Exercised Options: $33,454,972
Current Obligation: $33,454,972
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,068,626
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15QKN20D0012
IDV Type: IDC
Timeline
Start Date: 2020-06-30
Current End Date: 2023-10-30
Potential End Date: 2023-10-30 12:10:00
Last Modified: 2023-09-29
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