Army awards $211.9M contract for pyrotechnics, with Alliant Techsystems Inc. as the primary contractor

Contract Overview

Contract Amount: $21,188,297 ($21.2M)

Contractor: Kilgore Flares Company LLC

Awarding Agency: Department of Defense

Start Date: 2006-02-28

End Date: 2009-08-30

Contract Duration: 1,279 days

Daily Burn Rate: $16.6K/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: 200605!000654!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J06C0015 !A!N! !N! ! !20060228!20070430!824862254!824862254!618705925!N!ALLIANT TECHSYSTEMS INC !155 KILGORE RD !TOONE !TN!38381!74640!069!47!TOONE !HARDEMAN !TENNESSEE !+000007511934!N!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !000 !NOT DISCERNABLE !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!002!N!3A!A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!C!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: TOONE, HARDEMAN County, TENNESSEE, 38381

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $21.2 million to KILGORE FLARES COMPANY LLC for work described as: 200605!000654!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J06C0015 !A!N! !N! ! !20060228!20070430!824862254!824862254!618705925!N!ALLIANT TECHSYSTEMS INC !155 KILGORE RD !TOONE !TN!38381!74640!069!47!TOONE !HARD… Key points: 1. Contract awarded for pyrotechnics, indicating a need for specialized explosive materials. 2. The contract value of over $211 million suggests a significant scale of procurement. 3. Alliant Techsystems Inc. is a major defense contractor, implying established capabilities. 4. The contract duration of approximately 3.5 years points to a sustained requirement. 5. The primary service is ammunition manufacturing, a critical component of military readiness. 6. The contract was awarded under full and open competition, suggesting a competitive process.

Value Assessment

Rating: good

The contract value of $211,882,96.99 for pyrotechnics appears substantial. Benchmarking against similar contracts for ammunition and explosive materials would be necessary for a precise value-for-money assessment. However, the existence of full and open competition suggests that pricing was likely scrutinized. The contractor, Alliant Techsystems Inc., is a known entity in the defense sector, which may imply economies of scale or established production efficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while the competition was intended to be broad, there might have been specific reasons for excluding certain sources initially. The presence of multiple bidders (indicated by 'no': 2) suggests a degree of competition, which is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: A competitive award process, even with initial exclusions, generally benefits taxpayers by encouraging multiple firms to bid, potentially driving down costs and ensuring fair market value.

Public Impact

The U.S. Army is the primary beneficiary, receiving essential pyrotechnic materials for its operations. Services delivered include the manufacturing of ammunition, crucial for military training and deployment. The geographic impact is primarily within the United States, where the contractor operates and supplies the military. Workforce implications include employment opportunities within Alliant Techsystems Inc. and its supply chain, particularly in manufacturing roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Reliance on a single primary contractor could pose risks if performance issues arise.
The specialized nature of pyrotechnics requires stringent safety and handling protocols.

Positive Signals

Alliant Techsystems Inc. has a significant track record in defense contracting.
The contract's duration suggests a stable and predictable demand for these materials.
Full and open competition, even with exclusions, implies a structured procurement process.

Sector Analysis

The defense sector, particularly the ammunition manufacturing sub-sector, is characterized by high barriers to entry due to specialized knowledge, stringent regulatory requirements, and significant capital investment. This contract for pyrotechnics fits within the broader category of ordnance and ammunition production, a critical area for national security. Comparable spending benchmarks would typically be found within Department of Defense budgets allocated to munitions and explosive materials, often measured in billions of dollars annually across various services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). There is no explicit information regarding subcontracting plans for small businesses within this specific data point. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless Alliant Techsystems Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Department of Defense's Inspector General. Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and quality control. Transparency is facilitated through contract award databases like FPDS, where basic information is publicly available.

Related Government Programs

Department of Defense Ammunition Procurement
Ordnance and Explosives Manufacturing
Military Munitions Supply Chain
Alliant Techsystems Inc. Defense Contracts

Risk Flags

Potential for supply chain vulnerabilities
Contract awarded after exclusion of sources may warrant further investigation into competition fairness
Reliance on a single primary contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.2 million to KILGORE FLARES COMPANY LLC. 200605!000654!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J06C0015 !A!N! !N! ! !20060228!20070430!824862254!824862254!618705925!N!ALLIANT TECHSYSTEMS INC !155 KILGORE RD !TOONE !TN!38381!74640!069!47!TOONE !HARDEMAN !TENNESSEE !+000007511934!N!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !000 !NOT DISCERNABLE !332993!E! !3! ! ! ! ! !999

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 $21.2 million.

What is the period of performance?

Start: 2006-02-28. End: 2009-08-30.

What is the historical spending pattern for pyrotechnics by the U.S. Army?

Analyzing historical spending patterns for pyrotechnics by the U.S. Army requires access to detailed procurement data over multiple fiscal years. While this specific contract awarded in 2006 for approximately $211.9 million provides a snapshot, a comprehensive understanding would involve tracking similar awards for pyrotechnic components, flares, and related explosive materials. Trends might reveal fluctuations based on geopolitical events, modernization programs, or changes in operational tempo. For instance, periods of increased military engagement often correlate with higher demand and spending on munitions, including pyrotechnics. Conversely, periods of drawdown or strategic shifts might lead to reduced procurement. Examining the number of solicitations, average contract values, and the primary contractors involved over time would offer deeper insights into the Army's sustained investment in this critical capability.

How does the pricing of this contract compare to market rates for similar pyrotechnic materials?

Directly comparing the pricing of this $211.9 million contract to current market rates for similar pyrotechnic materials is challenging without specific unit cost data and detailed specifications of the pyrotechnics procured. The contract value represents the total award, not necessarily the per-unit cost. However, the fact that it was awarded under 'full and open competition after exclusion of sources' suggests that the Army sought competitive bids, which typically helps in achieving prices aligned with market conditions. Alliant Techsystems Inc. is a major defense contractor, and their pricing might reflect economies of scale in production. To conduct a thorough comparison, one would need to benchmark the unit prices of specific pyrotechnic items (e.g., flares, signal devices) against publicly available pricing from other defense contracts or commercial suppliers, adjusting for quantity, quality, and delivery requirements.

What are the key performance indicators (KPIs) associated with this pyrotechnics contract?

Key Performance Indicators (KPIs) for a pyrotechnics contract typically revolve around ensuring the reliability, safety, and timely delivery of these critical materials. For this specific contract, likely KPIs would include adherence to stringent quality control standards to guarantee the functionality and safety of pyrotechnic devices, as failure could have severe operational consequences. Delivery schedules are paramount; the Army needs these materials to meet operational readiness requirements, so on-time delivery would be a crucial metric. Furthermore, compliance with all relevant safety regulations during manufacturing, handling, and transportation is non-negotiable. Performance metrics might also encompass the contractor's responsiveness to technical queries, defect rates, and overall contract administration efficiency. The contract's success would be measured by the consistent availability of high-quality, safe pyrotechnic products meeting all specified technical requirements.

What is the track record of Alliant Techsystems Inc. in fulfilling similar defense contracts?

Alliant Techsystems Inc. (now part of Northrop Grumman) has a long and extensive track record in fulfilling defense contracts, particularly in areas related to munitions, propulsion systems, and aerospace components. Historically, the company has been a significant supplier of ammunition, including artillery shells, small arms ammunition, and related energetic materials. Their experience encompasses large-scale production, complex manufacturing processes, and adherence to stringent military specifications. Given their established presence and capabilities, it is probable that they have successfully executed numerous contracts involving pyrotechnics and other ordnance. A detailed review of their contract history with the Department of Defense and other government agencies would reveal specific performance metrics, past issues, and overall reliability in delivering defense materiel.

What are the potential risks associated with relying on a single primary contractor for pyrotechnics?

Relying on a single primary contractor, even one as established as Alliant Techsystems Inc., for critical pyrotechnic supplies presents several potential risks. Firstly, there's the risk of supply chain disruption; if the contractor faces production issues, labor strikes, natural disasters, or financial difficulties, the entire supply of pyrotechnics could be jeopardized, impacting military readiness. Secondly, a lack of robust competition over time could lead to complacency and potentially higher prices in future contract renewals, as the incumbent may have less incentive to innovate or optimize costs aggressively. Thirdly, if the contractor's performance deteriorates or quality issues arise, the government has limited immediate alternatives, potentially leading to extended periods of substandard supply or costly emergency procurements. Finally, dependence on one entity can reduce the government's leverage in negotiations and oversight.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 KILGORE RD, TOONE, TN, 08

Business Categories: Category Business, Not Designated a Small Business

Timeline