DoD Awards $26.5M for 13 Cartridges to Alliant Techsystems, Amidst Full and Open Competition

Contract Overview

Contract Amount: $26,537,510 ($26.5M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2012-03-09

End Date: 2015-06-12

Contract Duration: 1,190 days

Daily Burn Rate: $22.3K/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: PGU 13 CARTRIDGES

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: PGU 13 CARTRIDGES Key points: 1. Contract awarded to a single large business, Alliant Techsystems Operations LLC. 2. The contract is for ammunition manufacturing, specifically 'Ammunition (except Small Arms) Manufacturing'. 3. Competition was 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for excluding some sources. 4. The contract type is 'Firm Fixed Price', which shifts cost risk to the contractor. 5. The contract duration is 1190 days, spanning over three years.

Value Assessment

Rating: fair

The contract value of $26.5M over approximately 3 years for ammunition manufacturing appears within a reasonable range for defense procurement. However, without specific unit cost data or detailed scope, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be broad, certain sources were excluded. This could potentially limit price discovery and competition effectiveness.

Taxpayer Impact: The firm fixed price contract type aims to control costs for taxpayers, but the exclusion of sources may have prevented achieving the lowest possible price.

Public Impact

Ensures supply of critical ammunition for Department of the Army operations. Supports manufacturing jobs within the defense industrial base. Potential for price fluctuations if competition was significantly limited. Long-term contract provides stability for the awarded vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Lack of detailed unit cost data for benchmarking.
Potential for price inefficiencies despite FFP.

Positive Signals

Firm Fixed Price contract shifts cost risk.
Long contract duration provides supply stability.
Awarded to a known defense contractor.

Sector Analysis

The defense sector, particularly ammunition manufacturing, often involves specialized production capabilities and stringent quality requirements. Spending benchmarks vary widely based on the specific type and quantity of ammunition, but $26.5M over three years for a specific cartridge type is a substantial award.

Small Business Impact

The contract was awarded to Alliant Techsystems Operations LLC, a large business. There is no indication of small business participation or subcontracting in the provided data.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve contract management offices ensuring delivery and quality standards are met, and adherence to the terms of the 'Full and Open Competition After Exclusion of Sources' justification.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for limited competition impacting price.
Lack of transparency regarding source exclusion justification.
Absence of detailed unit cost data for robust value assessment.
Reliance on a single large business contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. PGU 13 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 $26.5 million.

What is the period of performance?

Start: 2012-03-09. End: 2015-06-12.

What was the specific justification for excluding sources in this 'Full and Open Competition After Exclusion of Sources' award, and how did it impact the final price?

The justification for excluding sources is critical to understanding the competitive landscape. If exclusions were based on unique technical capabilities or proprietary technology, it might explain a higher price. Conversely, if exclusions were arbitrary, it could indicate a missed opportunity for better price discovery and taxpayer savings. Further investigation into the source selection documentation is needed.

How does the per-unit cost of these 13 cartridges compare to similar ammunition procured by the DoD or other government agencies?

Benchmarking the per-unit cost against similar ammunition procurements is essential for assessing value. Without access to specific unit cost data and comparative contract information, it's difficult to determine if $26.5 million represents a fair price. Analysis of historical contracts for comparable ammunition types would be necessary to establish a benchmark.

What is the strategic importance of these specific 13 cartridges, and does their criticality justify the procurement terms and potential limitations on competition?

The criticality of the 13 cartridges to Department of the Army operations is a key factor in evaluating the procurement. If these are essential for national security or specific mission requirements with limited alternatives, the procurement terms, including any source exclusions, might be justifiable. Understanding the operational necessity provides context for the spending decision.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W52P1J10R0079

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, 55442

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

Financial Breakdown

Contract Ceiling: $26,537,510

Exercised Options: $26,537,510

Current Obligation: $26,537,510

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline