DoD awards $18.5M for infrared flares, with 2 bidders competing for a 586-day delivery order

Contract Overview

Contract Amount: $18,461,031 ($18.5M)

Contractor: Kilgore Flares Company LLC

Awarding Agency: Department of Defense

Start Date: 2025-12-22

End Date: 2027-07-31

Contract Duration: 586 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INFRARED COUNTERMEASURE FLARES ORDERING PERIOD #5 AWARD: MJU-7A/B - NSN: 1370-01-296-8395

Place of Performance

Location: TOONE, HARDEMAN County, TENNESSEE, 38381

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $18.5 million to KILGORE FLARES COMPANY LLC for work described as: INFRARED COUNTERMEASURE FLARES ORDERING PERIOD #5 AWARD: MJU-7A/B - NSN: 1370-01-296-8395 Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Competition dynamics show a healthy level of interest with two bidders. 3. Risk indicators are low due to a firm fixed-price contract type. 4. Performance context is a follow-on order, suggesting established requirements. 5. Sector positioning is within defense manufacturing, a critical area for military readiness.

Value Assessment

Rating: good

The contract value of $18.5 million for infrared countermeasure flares (MJU-7A/B) appears to be within a reasonable range, especially considering it was awarded under full and open competition. While specific unit cost benchmarks are not provided in the raw data, the presence of two bidders suggests a degree of price discovery. The firm fixed-price contract type further mitigates cost overrun risks for the government. Comparing this to similar large-scale defense procurements, the value seems aligned with industry standards for specialized munitions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received, which, while not a large number, still represents a competitive process. The presence of multiple bidders allows for price comparison and encourages more favorable terms for the government. The limited number of bidders could warrant further investigation into market dynamics or potential barriers to entry for other manufacturers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. The two bids received suggest that competition, while present, could potentially be enhanced to achieve even greater savings.

Public Impact

The primary beneficiaries are the U.S. Army and potentially other Department of Defense branches requiring advanced infrared countermeasures. The services delivered include the manufacturing and supply of MJU-7A/B infrared countermeasure flares. The geographic impact is primarily within the United States, with potential deployment to various operational theaters globally. Workforce implications include supporting jobs in specialized defense manufacturing within the contractor's facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders could indicate potential consolidation or high barriers to entry in the specialized flare manufacturing market.
Dependence on a single contractor for a critical defense component could pose supply chain risks if not managed proactively.

Positive Signals

Firm fixed-price contract type provides cost certainty and reduces the risk of budget overruns.
Follow-on nature of the order suggests a proven product and a stable relationship with the supplier.
Awarded under full and open competition, indicating a fair and accessible bidding process.

Sector Analysis

The defense manufacturing sector, particularly for specialized munitions like infrared countermeasure flares, is characterized by high technological barriers to entry and stringent quality control requirements. The market size for such components is directly tied to military readiness and operational tempo. This contract fits within the broader category of aerospace and defense, where government procurement is a significant driver of revenue. Comparable spending benchmarks would typically involve analyzing historical awards for similar flare types or other defensive electronic warfare components.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Kilgore Flares Company LLC is likely a larger entity, given the contract value. There is no explicit information on subcontracting plans for small businesses within this award, which could be an area for further inquiry to ensure opportunities are extended to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Aircraft Flares Procurement
Military Munitions Manufacturing
Aerospace and Defense Supply Chain
Infrared Countermeasure Systems

Risk Flags

Limited Competition
Supply Chain Concentration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.5 million to KILGORE FLARES COMPANY LLC. INFRARED COUNTERMEASURE FLARES ORDERING PERIOD #5 AWARD: MJU-7A/B - NSN: 1370-01-296-8395

Who is the contractor on this award?

The obligated recipient is KILGORE FLARES COMPANY 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 $18.5 million.

What is the period of performance?

Start: 2025-12-22. End: 2027-07-31.

What is the historical spending trend for MJU-7A/B infrared countermeasure flares by the Department of Defense?

Analyzing historical spending for the MJU-7A/B flares requires accessing past contract awards for this specific National Stock Number (NSN) or its predecessors. Without direct access to historical databases, it's challenging to provide precise figures. However, the current award being 'Ordering Period #5' suggests a sustained need and potentially recurring procurement cycles over several years. Typically, such recurring orders indicate a stable demand driven by operational requirements or fleet modernization. The total value of previous ordering periods, if available, would provide context on the overall lifecycle cost and the contractor's performance history in meeting demand over time. Fluctuations in spending could be linked to changes in geopolitical threats, military strategy shifts, or the introduction of newer technologies.

How does the unit cost of these flares compare to similar products from other manufacturers or previous contracts?

Direct unit cost comparison is not feasible with the provided data alone, as it lacks specific per-unit pricing. However, the contract's award under 'Full and Open Competition' with two bidders suggests a market-driven price. To perform a thorough comparison, one would need to: 1) Identify the exact quantity associated with the $18.46 million award to calculate an average unit price. 2) Research other recent DoD contracts for the MJU-7A/B or functionally equivalent flares (e.g., MJU-10/B) awarded to different manufacturers. 3) Benchmark against industry pricing guides or reports for similar defense components. The firm fixed-price nature of this contract implies that the negotiated price is intended to cover all costs and profit, and the government aims to secure the best value through competition.

What are the key performance metrics and quality assurance measures for this contract?

Key performance metrics for this contract would likely revolve around timely delivery, adherence to specifications (including NSN: 1370-01-296-8395), and product quality. As a firm fixed-price contract, Kilgore Flares Company LLC is obligated to deliver the specified quantity of MJU-7A/B flares by the contract's end date (July 31, 2027). Quality assurance would involve rigorous testing and inspection protocols mandated by the Department of the Army, ensuring the flares meet stringent military standards for reliability and effectiveness in operational environments. Acceptance testing by the government post-delivery is a standard procedure. Failure to meet these performance or quality standards could result in contract penalties or termination.

What is the track record of Kilgore Flares Company LLC in fulfilling similar defense contracts?

Kilgore Flares Company LLC has a history of supplying flares to the U.S. military, as evidenced by this being 'Ordering Period #5'. This suggests a degree of reliability and capability in meeting the government's requirements for this specific product. To assess their track record more comprehensively, one would examine past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any history of contract disputes, delivery delays, or quality issues on previous awards. Their ability to secure multiple ordering periods for the same item indicates a generally positive relationship and satisfactory performance, though a deeper dive into specific past performance reports would provide a more definitive assessment.

Are there any identified risks associated with the supply chain or production capacity for these flares?

Potential risks associated with the supply chain and production capacity for these flares include reliance on specific raw materials, potential vulnerabilities in the manufacturing process, and the capacity of Kilgore Flares Company LLC to meet demand, especially if multiple large orders are placed concurrently by different government entities. The fact that this is 'Ordering Period #5' suggests that the contractor has historically been able to meet demand. However, the defense industrial base can be subject to disruptions (e.g., material shortages, geopolitical events impacting suppliers). The limited competition (two bidders) might also hint at a specialized market with fewer qualified manufacturers, potentially concentrating production capacity among a small number of firms, which inherently carries supply chain risk.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie Industrielle DE Delle

Address: 155 KILGORE DR, TOONE, TN, 38381

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

Financial Breakdown

Contract Ceiling: $18,461,031

Exercised Options: $18,461,031

Current Obligation: $18,461,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J21D0010

IDV Type: IDC

Timeline