DoD Awards $170M for IRCM Flares to Kilgore Flares Company LLC
Contract Overview
Contract Amount: $170,323,462 ($170.3M)
Contractor: Kilgore Flares Company LLC
Awarding Agency: Department of Defense
Start Date: 2009-09-25
End Date: 2016-01-31
Contract Duration: 2,319 days
Daily Burn Rate: $73.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: AWARD IRCM FLARES
Place of Performance
Location: TOONE, HARDEMAN County, TENNESSEE, 38381, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $170.3 million to KILGORE FLARES COMPANY LLC for work described as: AWARD IRCM FLARES Key points: 1. Significant contract value of $170.3M awarded. 2. Competition method was 'Full and Open', suggesting broad market engagement. 3. Contract duration is substantial at 2319 days. 4. The sector is Miscellaneous Chemical Product Manufacturing, critical for defense.
Value Assessment
Rating: fair
The contract value is substantial, but without specific per-unit cost data or comparison points, assessing its pricing efficiency is difficult. The firm fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for the widest range of potential bidders and can lead to competitive pricing. However, the specific number of bids received and the price discovery process are not detailed.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it aims to secure the best value through market forces.
Public Impact
Ensures supply of critical defense countermeasures (IRCM Flares). Supports a specific manufacturing sector within the US. Long-term award provides stability for both the government and the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown.
- Long contract duration may introduce risks if technology or needs change.
Positive Signals
- Full and open competition utilized.
- Firm fixed-price contract type.
Sector Analysis
This contract falls under the Miscellaneous Chemical Product and Preparation Manufacturing sector. Spending in this sector for defense is crucial for operational readiness, and benchmarks would typically relate to the cost and availability of specialized chemical defense components.
Small Business Impact
The data indicates the awardee is 'KILGORE FLARES COMPANY LLC'. Further analysis would be needed to determine if this is a small business and if subcontracting opportunities were mandated or utilized.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard DoD oversight mechanisms would apply, but specific oversight details for this award are not provided.
Related Government Programs
- All Other Miscellaneous Chemical Product and Preparation Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed cost data.
- Long contract duration.
- Potential for technological obsolescence.
- Limited insight into competitive bidding outcomes.
Tags
all-other-miscellaneous-chemical-product, department-of-defense, tn, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $170.3 million to KILGORE FLARES COMPANY LLC. AWARD IRCM FLARES
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 $170.3 million.
What is the period of performance?
Start: 2009-09-25. End: 2016-01-31.
What was the average number of bids received under this full and open competition, and how did the winning bid compare to others?
The provided data does not specify the number of bids received or offer comparative pricing details. Understanding the competitive landscape beyond the 'full and open' designation is crucial for a thorough value assessment. Without this, it's difficult to confirm if the price achieved truly reflects optimal market conditions.
Are there any identified risks associated with the long duration (2319 days) of this contract, such as technological obsolescence or changing threat environments?
A contract duration of over six years presents inherent risks. Technological advancements in countermeasures or evolving enemy tactics could render the awarded flares less effective over time. Furthermore, market shifts or production challenges for the contractor could arise, impacting sustained delivery and potentially requiring contract modifications.
How does the unit cost of these IRCM flares compare to similar products procured by other defense agencies or allied nations?
The provided data lacks specific unit cost information, making direct comparison impossible. Benchmarking against similar IRCM flare procurements would require access to detailed cost data from other contracts. Such analysis is essential to determine if the $170.3M award represents a cost-effective solution for the Department of Defense.
Industry Classification
NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J08R0084
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Chemring Group PLC (UEI: 216244954)
Address: 155 KILGORE DR, TOONE, TN, 38381
Business Categories: Category Business, Foreign-Owned and U.S.-Incorporated Business, Labor Surplus Area Firm, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $170,326,644
Exercised Options: $170,326,644
Current Obligation: $170,323,462
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-25
Current End Date: 2016-01-31
Potential End Date: 2016-01-31 00:00:00
Last Modified: 2015-06-15
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