Army Awards $126M Contract for Ammunition to Alliant Techsystems, Inc
Contract Overview
Contract Amount: $34,489,014 ($34.5M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2005-08-29
End Date: 2007-06-30
Contract Duration: 670 days
Daily Burn Rate: $51.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200511!001777!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0072 !A!N! !N! ! !20050829!20070630!126323166!126323166!618705925!N!ALLIANT TECHSYSTEMS INC !900 EHLEN DRIVE !ANOKA !MN!55303!01720!003!27!ANOKA !ANOKA !MINNESOTA !+000013104747!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !N!Z!A!N!J!2!003!N!3A!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: ANOKA, ANOKA County, MINNESOTA, 55303
Plain-Language Summary
Department of Defense obligated $34.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: 200511!001777!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0072 !A!N! !N! ! !20050829!20070630!126323166!126323166!618705925!N!ALLIANT TECHSYSTEMS INC !900 EHLEN DRIVE !ANOKA !MN!55303!01720!003!27!ANOKA !ANOK… Key points: 1. The contract value is $126.3 million for ammunition. 2. Alliant Techsystems, Inc. is the primary contractor. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The sector is Defense, specifically ammunition manufacturing.
Value Assessment
Rating: good
The contract value of $126.3 million appears reasonable for the specified period and scope of ammunition supply. Benchmarking against similar large-scale ammunition procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition after the exclusion of sources, indicating a competitive process. This method aims to ensure fair pricing and access to the best value for the government.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely receiving a fair price for the ammunition procured.
Public Impact
Ensures supply of critical ammunition for U.S. Army operations. Supports defense industrial base and manufacturing capabilities. Potential impact on readiness and operational effectiveness of military forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract modifications.
- Dependence on a single contractor for a critical supply.
Positive Signals
- Awarded through a competitive process.
- Clear contract duration and delivery schedule.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the manufacturing of ammunition. Spending benchmarks in this area are highly dependent on the type and quantity of munitions required, but this award represents a significant investment in military logistics.
Small Business Impact
The data indicates that the prime contractor is Alliant Techsystems, Inc., a large business. There is no explicit information regarding small business participation in this specific contract award.
Oversight & Accountability
The contract was awarded by the Department of Defense, with oversight likely provided by the Defense Contract Management Agency. The definitive contract structure suggests a clear agreement on terms and deliverables.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for sole-source dependency if follow-on contracts are not competitively bid.
- Risk associated with the exclusion of sources impacting overall market competition.
- Long-term sustainment and obsolescence management for ammunition types.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mn, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. 200511!001777!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0072 !A!N! !N! ! !20050829!20070630!126323166!126323166!618705925!N!ALLIANT TECHSYSTEMS INC !900 EHLEN DRIVE !ANOKA !MN!55303!01720!003!27!ANOKA !ANOKA !MINNESOTA !+000013104747!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !202
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 $34.5 million.
What is the period of performance?
Start: 2005-08-29. End: 2007-06-30.
What specific types and quantities of ammunition are covered under this contract?
The data specifies 'AMMUNITION, THROUGH 30 MM' and 'AMMUNITION' as the product service code and category, respectively. However, the exact types and quantities are not detailed in this summary. Further analysis of the contract's statement of work would be necessary to ascertain the precise nature of the ammunition procured.
What were the key factors that led to the exclusion of other sources in the 'full and open competition after exclusion of sources' method?
The exclusion of sources typically occurs when specific technical capabilities, proprietary information, or unique requirements make it impractical or impossible to solicit from all potential offerors. The rationale for excluding other sources would need to be documented in the contract's justification and approval (J&A) document.
How does the firm fixed price (FFP) contract type mitigate cost risks for the government?
A Firm Fixed Price (FFP) contract establishes a price that is not subject to adjustment based on the contractor's cost experience. This contract type shifts the risk of cost overruns to the contractor, providing the government with cost certainty and encouraging efficient performance.
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
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 4700 NATHAN LN N, PLYMOUTH, MN, 55442
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2005-08-29
Current End Date: 2007-06-30
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2021-11-03
More Contracts from Alliant Techsystems Operations LLC
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- Small Caliber Ammunition (5.56MM, 7.62MM, CAL .22, CAL. 30, CAL .45, CAL .50) — $582.2M (Department of Defense)
- Systems Engineering and Development — $569.0M (Department of Defense)
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