DoD Awards $21.8M for 30mm Ammunition to Alliant Techsystems, Awarded via Full and Open Competition

Contract Overview

Contract Amount: $21,786,686 ($21.8M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2012-05-24

End Date: 2014-05-30

Contract Duration: 736 days

Daily Burn Rate: $29.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCURE LW 30MM M788 TP, 25MM M793 TP-T AND LW 30MM HPT CARTRIDGES.

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $21.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: PROCURE LW 30MM M788 TP, 25MM M793 TP-T AND LW 30MM HPT CARTRIDGES. Key points: 1. Contract awarded to a single vendor, Alliant Techsystems Operations LLC. 2. The contract is for 30mm and 25mm training ammunition. 3. Awarded under full and open competition, suggesting market availability. 4. The sector is Ammunition Manufacturing, a niche but critical defense component.

Value Assessment

Rating: fair

The contract value of $21.8M for 736 days of performance appears reasonable for specialized ammunition. However, without specific unit quantities or detailed cost breakdowns, a precise value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors were likely solicited. This method generally promotes competitive pricing and ensures the government receives fair market value.

Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it aims to secure the best possible prices through market forces.

Public Impact

Ensures supply of training ammunition for military readiness. Supports a key defense manufacturing capability. Potential for follow-on contracts based on performance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed cost breakdown for unit pricing.
Limited visibility into specific quantities and types of ammunition procured.
Potential for price escalation in future contracts if market conditions change.

Positive Signals

Awarded via full and open competition.
Contract supports critical defense materiel.
Established vendor with a history in defense contracting.

Sector Analysis

The defense sector relies heavily on specialized manufacturing for munitions. Spending benchmarks for ammunition contracts vary widely based on type, quantity, and technological complexity. This contract falls within the Ammunition (except Small Arms) Manufacturing sub-sector.

Small Business Impact

The data indicates this contract was awarded to Alliant Techsystems Operations LLC and does not specify any small business participation. Given the nature of ammunition manufacturing, it's common for prime contracts to go to larger, specialized firms, though subcontracts could potentially involve smaller businesses.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial accountability.

Related Government Programs

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

Risk Flags

Lack of detailed unit cost information.
Absence of specific quantity breakdown per ammunition type.
No data on the number of competing bids.
Potential for price volatility in defense supply chains.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. PROCURE LW 30MM M788 TP, 25MM M793 TP-T AND LW 30MM HPT 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 $21.8 million.

What is the period of performance?

Start: 2012-05-24. End: 2014-05-30.

What is the specific quantity and type breakdown of the ammunition procured under this contract, and how does this influence the per-unit cost assessment?

The provided data lists the contract for 'PROCURE LW 30MM M788 TP, 25MM M793 TP-T AND LW 30MM HPT CARTRIDGES' but does not specify exact quantities for each type. Without this breakdown, it's impossible to determine the precise per-unit cost or benchmark it effectively against similar contracts. This lack of detail hinders a thorough value assessment.

Given the full and open competition, what was the range of bids received, and how did Alliant Techsystems' bid compare to establish a competitive price?

While the contract was awarded under full and open competition, the specific bid data, including the number of bidders and the range of bids received, is not provided. Understanding this information would offer greater insight into the effectiveness of the competition in driving down costs and ensuring the government secured the most advantageous price.

What is the expected operational impact or strategic value of procuring these specific types of training ammunition for the Department of the Army?

The M788 TP (Target Practice) and M793 TP-T (Target Practice Tracer) cartridges are crucial for realistic and cost-effective training of personnel operating weapon systems that utilize 30mm and 25mm ammunition. Ensuring an adequate supply of these training rounds directly supports combat readiness and proficiency without expending more expensive combat ammunition.

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: W52P1J12R0036

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: $21,786,686

Exercised Options: $21,786,686

Current Obligation: $21,786,686

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $396,240

Contract Characteristics

Cost or Pricing Data: NO

Timeline