Army Awards $59.1M Contract for Ammunition Manufacturing to Alliant Techsystems
Contract Overview
Contract Amount: $54,169,956 ($54.2M)
Contractor: Alliant Ammunition Systems Company, L.L.C.
Awarding Agency: Department of Defense
Start Date: 2004-04-28
End Date: 2006-10-31
Contract Duration: 916 days
Daily Burn Rate: $59.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200407!001009!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0045 !A!N! !N! ! !20040428!20050228!126323166!126323166!618705925!N!ALLIANT TECHSYSTEMS INC !900 EHLEN DRIVE !ANOKA !MN!55303!58000!123!27!ST. PAUL !RAMSEY !MINNESOTA !+000012690756!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!002!N!1A!A!N!A! ! !N!C!N! ! ! !B!B!A!A!000!A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $54.2 million to ALLIANT AMMUNITION SYSTEMS COMPANY, L.L.C. for work described as: 200407!001009!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0045 !A!N! !N! ! !20040428!20050228!126323166!126323166!618705925!N!ALLIANT TECHSYSTEMS INC !900 EHLEN DRIVE !ANOKA !MN!55303!58000!123!27!ST. PAUL !RAMS… Key points: 1. The contract is for ammunition manufacturing, excluding small arms. 2. Alliant Techsystems Inc. is the primary contractor. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The estimated value is $59.1 million. 5. The contract duration is 916 days.
Value Assessment
Rating: good
The contract value of $59.1 million for ammunition manufacturing appears reasonable given the scope and duration. Benchmarking against similar large-scale defense manufacturing contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources,' which suggests a competitive process but with specific limitations. This method can impact price discovery by potentially narrowing the pool of bidders.
Taxpayer Impact: The competitive process, even with exclusions, aims to secure fair pricing for taxpayers. The final price of $59.1 million will be scrutinized for value.
Public Impact
Ensures continued supply of critical ammunition for the U.S. Army. Supports jobs within the defense manufacturing sector, specifically in Minnesota. Potential for follow-on contracts based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources.
- Potential for cost overruns in long-term manufacturing contracts.
- Dependence on a single contractor for a critical defense component.
Positive Signals
- Established contractor with experience in defense manufacturing.
- Firm fixed-price contract can provide cost certainty.
- Contract duration allows for stable production planning.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on ammunition. Spending benchmarks for ammunition procurement can vary significantly based on type, quantity, and technological complexity.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this particular contract. Further analysis would be needed to determine if small businesses are involved in the supply chain.
Oversight & Accountability
The Department of Defense and the Defense Contract Management Agency are responsible for oversight. The contract's performance will be monitored to ensure compliance with terms and quality standards.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Limited competition may result in suboptimal pricing.
- Potential for supply chain disruptions affecting ammunition availability.
- Long-term reliance on a single supplier for critical defense items.
- Scope creep or changes in requirements could impact cost and schedule.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mn, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.2 million to ALLIANT AMMUNITION SYSTEMS COMPANY, L.L.C.. 200407!001009!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0045 !A!N! !N! ! !20040428!20050228!126323166!126323166!618705925!N!ALLIANT TECHSYSTEMS INC !900 EHLEN DRIVE !ANOKA !MN!55303!58000!123!27!ST. PAUL !RAMSEY !MINNESOTA !+000012690756!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is ALLIANT AMMUNITION SYSTEMS COMPANY, L.L.C..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $54.2 million.
What is the period of performance?
Start: 2004-04-28. End: 2006-10-31.
What specific types of ammunition are covered under this contract, and how does their cost compare to historical procurement data for similar items?
The contract specifies 'AMMUNITION, THROUGH 30 MM' and 'AMMUNITION' under the PSC code A6. Without detailed line-item breakdowns and historical pricing, a precise cost comparison is difficult. However, the overall value of $59.1 million for a multi-year supply suggests a significant quantity, and the firm fixed-price nature implies an effort to control costs.
What were the specific reasons for excluding other potential sources in the competition, and did this exclusion lead to a higher price than if broader competition had been allowed?
The contract notes 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' The specific reasons for exclusion are not detailed in this data. Such exclusions typically occur due to unique capabilities, proprietary technology, or urgent needs. While it can limit price competition, the agency likely determined it was necessary for meeting specific requirements.
How will the effectiveness of this ammunition supply be measured, and what are the key performance indicators (KPIs) for Alliant Techsystems Inc. under this contract?
Effectiveness is typically measured by on-time delivery, quality control (meeting specifications), and meeting production targets. Key performance indicators would likely include defect rates, delivery schedules, and adherence to production volumes. The contract's firm fixed-price nature incentivizes the contractor to meet these KPIs efficiently.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 900 EHLEN DRIVE, ANOKA, MN, 55303
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-28
Current End Date: 2006-10-31
Potential End Date: 2006-10-31 00:00:00
Last Modified: 2015-04-28
More Contracts from Alliant Ammunition Systems Company, L.L.C.
- 200509!001326!2100!w52p1j!u.s. Army Industrial Operations !w52p1j05c0047 !A!N! !N! ! !20050628!20051130!126323166!126323166!618705925!n!alliant Techsystems Inc !900 Ehlen Drive !anoka !mn!55303!01720!003!27!anoka !anoka !minnesota !+000002668282!y!n!000000000000!1305!ammunition, Through 30 MM !A6 !ammunition !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !a!n!j!2!002!n!3a!a!y!a! ! !N!C!N! ! ! !a!a!a!a!000!a!b!y! ! ! ! ! ! !0001! ! — $189.7M (Department of Defense)
- 200403!000377!2100!w52p1j!u.s. Army Industrial Operations !w52p1j04c0019 !A!N! !N! ! !20031230!20050531!126323166!126323166!618705925!n!alliant Techsystems Inc !900 Ehlen Drive !anoka !mn!55303!58000!123!27!st. Paul !ramsey !minnesota !+000016070261!n!n!000000000000!1305!ammunition, Through 30 MM !A6 !ammunition !000 !* !332993!E! !3! ! ! ! ! !99990909!B! ! !B! !d!n!j!1!001!n!1g!a!y!a! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! ! ! ! !0001! ! — $61.1M (Department of Defense)
- 1. the Purpose of This Delivery Order IS to Fund Option 4 for a Total of 518,535 M792 Cartridges. This Shall BE a Combined Army / Marine Corps BUY. the Breakdown IS AS Follows: US Army Portion: 359,467 Usmc Portion: 159,068 the Delivery Information for These Cartridges Shall BE Definitized in a Future Modification to This Delivery Order. 2. the Delivery Order Also Provides Funding for 100 Wood Pallets. the Delivery Information for These Pallets Shall BE Definitized in a Future Modification to This Delivery Order. 3. the Delivery Information for the PA125 Containers and the 270 Metal Pallets Shall BE Definitized in a Future Modification to This Delivery Order. 4. the Total Value of This Delivery Order IS $24,324,874.50 5. ALL Other Terms and Conditions of the Contract Remain the Same and ARE in Full Force and Effect — $24.3M (Department of Defense)
- Option 3-FY06 Prod, Army LOT 3A — $22.9M (Department of Defense)
- 200509!001418!2100!w52p1j!u.s. Army Industrial Operations !w52p1j05c0053 !A!N! !N! ! !20050628!20060531!126323166!126323166!618705925!n!alliant Techsystems Inc !900 Ehlen Drive !anoka !mn!55303!01720!003!27!anoka !anoka !minnesota !+000008650562!n!n!000000000000!1305!ammunition, Through 30 MM !A6 !ammunition !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !a!n!j!2!002!n!3a!z!y!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!y! ! ! ! ! ! !0001! ! — $17.2M (Department of Defense)
View all Alliant Ammunition Systems Company, L.L.C. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)