DoD Spends $24.2M on APDS Cartridges from Alliant Techsystems, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $24,165,292 ($24.2M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2009-06-03
End Date: 2012-04-30
Contract Duration: 1,062 days
Daily Burn Rate: $22.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 20MM MK244 MOD 0 ARMOR PIERCING DISCARDING SABOT (APDS) CARTRIDGES
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $24.2 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: 20MM MK244 MOD 0 ARMOR PIERCING DISCARDING SABOT (APDS) CARTRIDGES Key points: 1. Significant investment in specialized ammunition for military applications. 2. Alliant Techsystems, a major defense contractor, secured the award. 3. Full and open competition suggests a potentially competitive pricing environment. 4. The contract spans over two years, indicating sustained demand.
Value Assessment
Rating: good
The total award of $24.2 million for 2.27 million cartridges appears reasonable given the specialized nature of APDS ammunition. Benchmarking against similar advanced ordnance contracts would provide a more precise assessment.
Cost Per Unit: $10.62
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure specialized military hardware at optimal prices.
Public Impact
Ensures readiness of Army forces with advanced armor-piercing capabilities. Supports the defense industrial base through contracts with major manufacturers. Procurement of critical munitions contributes to national security objectives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price escalation in future contracts due to specialized nature.
- Dependence on a single supplier for this specific munition type.
Positive Signals
- Awarded through full and open competition.
- Contract duration suggests stable demand and potential for economies of scale.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending in this area is directly tied to military readiness and modernization efforts.
Small Business Impact
While the primary contractor is a large entity, the procurement of ammunition components may indirectly involve smaller businesses within the defense supply chain. Further analysis would be needed to confirm direct small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, a major component of the DoD. Standard procurement oversight processes would apply, focusing on contract performance, delivery, and adherence to specifications.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Specialized munition with limited civilian application.
- Potential for obsolescence as technology advances.
- Dependence on specific raw materials.
- Geopolitical factors influencing supply chain stability.
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 $24.2 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. 20MM MK244 MOD 0 ARMOR PIERCING DISCARDING SABOT (APDS) CARTRIDGES
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 $24.2 million.
What is the period of performance?
Start: 2009-06-03. End: 2012-04-30.
What is the historical price trend for MK244 MOD 0 APDS cartridges, and how does this award compare?
Analyzing historical pricing data for this specific munition is crucial. If previous awards were significantly lower, it might indicate an increase in raw material costs, manufacturing complexity, or a less competitive bidding environment for this particular award. Conversely, if prices are stable or lower, it suggests effective price negotiation and competitive sourcing.
What are the specific performance requirements for the MK244 MOD 0 APDS cartridges, and how were they validated?
Understanding the technical specifications and performance metrics is key to assessing value. Validation processes, such as testing and quality assurance protocols, ensure the ammunition meets stringent military standards for effectiveness against intended targets. Any deviations or failures in validation could represent a significant risk to operational capability and taxpayer investment.
What is the projected lifespan and operational effectiveness of these cartridges in relevant combat scenarios?
The effectiveness and longevity of the ammunition directly impact its value. Assessing how these cartridges perform against modern armor threats and their shelf-life under various storage conditions provides insight into their true utility. A longer operational lifespan and proven effectiveness in realistic scenarios justify the investment and contribute to mission success.
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: W52P1J08R0093
Offers Received: 2
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, 03
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,165,292
Exercised Options: $24,165,292
Current Obligation: $24,165,292
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2009-06-03
Current End Date: 2012-04-30
Potential End Date: 2012-04-30 00:00:00
Last Modified: 2015-01-22
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