Alliant Techsystems Operations LLC awarded $86.8M for non-standard ammunition, impacting Afghanistan's defense capabilities

Contract Overview

Contract Amount: $86,816,944 ($86.8M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2008-12-04

End Date: 2009-12-31

Contract Duration: 392 days

Daily Burn Rate: $221.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NON STANDARD AMMUNITION FOR GOVERNMENT OF AFGHANISTAN.

Place of Performance

Location: INDEPENDENCE, JACKSON County, MISSOURI, 64051

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $86.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: NON STANDARD AMMUNITION FOR GOVERNMENT OF AFGHANISTAN. Key points: 1. Contract value represents a significant investment in specialized ordnance. 2. Competition dynamics suggest a potentially competitive bidding process for this specialized need. 3. Performance risk is moderate, given the nature of ammunition supply and delivery. 4. This contract supports broader U.S. foreign policy and security assistance objectives. 5. The sector involves specialized defense manufacturing with limited, high-capability suppliers. 6. Delivery timeline of approximately one year indicates a focused operational requirement.

Value Assessment

Rating: good

The contract value of $86.8 million for non-standard ammunition appears reasonable given the specialized nature of the product and the quantities likely involved. Benchmarking against similar foreign military sales of ammunition is challenging due to unique specifications and geopolitical contexts. However, the firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The presence of 14 bids suggests a healthy level of interest and competition for this specialized defense requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process for this ammunition contract helps ensure taxpayer dollars are used efficiently by driving down prices through market forces.

Public Impact

The primary beneficiaries are the government of Afghanistan, receiving critical defense materiel. Services delivered include the provision of specialized ammunition, essential for military operations. The geographic impact is focused on Afghanistan, supporting its internal security and defense. Workforce implications are within the defense manufacturing sector, potentially supporting jobs at Alliant Techsystems Operations LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in delivery impacting operational readiness in Afghanistan.
Risk of ammunition quality issues if not rigorously inspected.
Geopolitical instability in Afghanistan could affect delivery and end-use.

Positive Signals

Firm fixed-price contract structure limits cost escalation for the government.
Full and open competition suggests a potentially competitive price was secured.
Award to a known defense contractor like Alliant Techsystems Operations LLC implies established manufacturing capabilities.

Sector Analysis

The defense manufacturing sector, particularly for specialized ordnance, is characterized by high barriers to entry, stringent quality control, and significant R&D investment. Contracts like this, for non-standard ammunition, often fall under foreign military sales or security assistance programs, requiring specific technical expertise and adherence to international regulations. The market is typically dominated by a few large, established defense contractors capable of meeting such demanding requirements.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Alliant Techsystems Operations LLC, is a large defense manufacturer. There is no explicit information on subcontracting plans for small businesses within this award, but large defense contracts often include provisions for small business participation, which would need further investigation.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and procurement regulations. The firm fixed-price nature provides some cost control. Accountability measures would involve performance monitoring, delivery schedules, and quality assurance of the ammunition. Transparency is generally maintained through contract award databases, though specific operational details might be sensitive.

Related Government Programs

Foreign Military Sales (FMS)
Security Assistance Programs
Ammunition Procurement
Defense Materiel Support

Risk Flags

Potential for diversion of munitions
Logistical challenges in Afghanistan
Geopolitical instability impacting delivery/use
Quality assurance of specialized ammunition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $86.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. NON STANDARD AMMUNITION FOR GOVERNMENT OF AFGHANISTAN.

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 $86.8 million.

What is the period of performance?

Start: 2008-12-04. End: 2009-12-31.

What is the specific type and quantity of 'non-standard ammunition' procured under this contract?

The provided data does not specify the exact type or quantity of 'non-standard ammunition.' The North American Industry Classification System (NAICS) code '332993' relates to 'Ammunition (except Small Arms) Manufacturing,' indicating a broad category. 'Non-standard' likely refers to ammunition not typically used by U.S. forces or requiring specialized production for the recipient nation's weapon systems. Determining the precise nature would require access to the contract's detailed statement of work or technical specifications, which are not publicly available in this dataset.

How does the unit cost of this ammunition compare to similar items procured by the U.S. or other allied nations?

Without knowing the specific type and quantity of ammunition, a direct unit cost comparison is impossible. The total contract value is $86.8 million over approximately 392 days. If we were to assume a hypothetical quantity, say 1 million rounds, the average cost per round would be $86.80. However, this is purely speculative. Benchmarking is further complicated by the 'non-standard' nature, implying it may not be a common item. Factors like specialized manufacturing processes, unique material requirements, and the specific threat environment in Afghanistan would influence its cost relative to standard military-grade ammunition.

What are the primary risks associated with delivering ammunition to Afghanistan, and how were they mitigated?

Key risks include logistical challenges due to terrain and infrastructure, security threats during transit and delivery, potential for diversion or misuse of the ammunition, and geopolitical instability affecting the recipient government's ability to receive and secure the materiel. Mitigation strategies, not detailed in the provided data, would typically involve robust security protocols for transportation, end-use monitoring agreements with the Afghan government, stringent chain-of-custody procedures, and potentially phased deliveries tied to security assessments. The firm fixed-price contract shifts some financial risk to the contractor, but operational and security risks remain significant.

What is Alliant Techsystems Operations LLC's track record with similar foreign military sales or ammunition contracts?

Alliant Techsystems Operations LLC (now part of Northrop Grumman) has a long history and extensive experience in defense manufacturing, including a wide range of munitions and ordnance. They are a major supplier to the U.S. military and have participated in numerous foreign military sales programs. While specific details on their past performance for 'non-standard ammunition' to Afghanistan aren't provided here, their general profile suggests a strong capability to handle complex, large-scale defense supply contracts, including those involving international customers and specialized requirements.

What was the historical spending trend for this specific type of ammunition or similar support to Afghanistan prior to this contract?

The provided data focuses solely on this single contract award. To understand historical spending trends for similar ammunition or support to Afghanistan, one would need to analyze broader Department of Defense and State Department spending records, particularly those related to Foreign Military Sales (FMS) and Security Cooperation programs for Afghanistan over multiple fiscal years. This would involve searching databases for contracts with similar NAICS codes, PSC codes (if available), and recipient country designations to identify patterns, fluctuations, and the overall scale of investment in defense materiel for the region.

How does the 'firm fixed price' (FFP) contract type influence the government's exposure to cost overruns versus other contract types like cost-plus?

A Firm Fixed Price (FFP) contract, like the one awarded here ('pt': 'FIRM FIXED PRICE'), places the primary responsibility for cost overruns on the contractor. This means the government agrees to pay a set price regardless of the contractor's actual costs incurred. This contract type is advantageous for the government when the scope of work is well-defined and risks are understood, as it provides budget certainty and incentivizes contractor efficiency. In contrast, cost-plus contracts allow the contractor to recover all allowable costs plus a fee, offering more flexibility for uncertain scopes but exposing the government to potentially higher costs if not managed tightly. For a defined product like ammunition, FFP is generally preferred for cost control.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J08R0121

Offers Received: 14

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: HWY 7 & 78 LAKE CITY ARMY AMUNITION PLANT, INDEPENDENCE, MO, 05

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $86,816,944

Exercised Options: $86,816,944

Current Obligation: $86,816,944

Timeline