DoD Awards $124.7M for Infrared Countermeasure Flares to Kilgore Flares Company LLC
Contract Overview
Contract Amount: $124,750,864 ($124.8M)
Contractor: Kilgore Flares Company LLC
Awarding Agency: Department of Defense
Start Date: 2014-11-03
End Date: 2020-01-31
Contract Duration: 1,915 days
Daily Burn Rate: $65.1K/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: CONTRACT AWARD FOR THE INFRARED COUNTERMEASURE (IRCM) FLARES, M206, MJU-7 AND MJU-10.
Place of Performance
Location: TOONE, HARDEMAN County, TENNESSEE, 38381
Plain-Language Summary
Department of Defense obligated $124.8 million to KILGORE FLARES COMPANY LLC for work described as: CONTRACT AWARD FOR THE INFRARED COUNTERMEASURE (IRCM) FLARES, M206, MJU-7 AND MJU-10. Key points: 1. Significant award for essential defense supplies. 2. Competition method suggests potential for price optimization. 3. Long contract duration may introduce risk. 4. Focus on chemical manufacturing sector.
Value Assessment
Rating: good
The contract value of $124.7M over approximately 5 years is substantial for specialized flares. Benchmarking against similar defense procurements for IRCM flares would be necessary to fully assess value, but the fixed-price structure provides cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This indicates that while competition was sought, specific reasons led to excluding some potential sources. The impact on price discovery depends on the number of bidders and the justification for exclusion.
Taxpayer Impact: Taxpayer funds are being used for critical defense equipment. The effectiveness of the competition process will directly influence the overall cost-efficiency of this expenditure.
Public Impact
Ensures availability of vital countermeasures for military aircraft. Supports a specific segment of the defense industrial base. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (5 years) could lead to price escalation or obsolescence.
- Exclusion of sources in competition may limit best pricing.
- Reliance on a single contractor for a critical item.
Positive Signals
- Awarded for essential defense materiel.
- Firm Fixed Price contract provides cost predictability.
- Contractor is located in the US (Tennessee).
Sector Analysis
This contract falls within the chemical manufacturing sector, specifically producing specialized ordnance for military applications. Defense spending in this niche area is driven by operational requirements and technological advancements in threat detection and countermeasures.
Small Business Impact
The awardee, Kilgore Flares Company LLC, is not identified as a small business in this data. Analysis of subcontracting opportunities for small businesses within this large prime contract would be beneficial.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial accountability.
Related Government Programs
- All Other Miscellaneous Chemical Product and Preparation Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price increases due to long contract duration.
- Limited competition may have resulted in a higher price.
- Risk of technological obsolescence over the contract period.
- Dependence on a single supplier for critical defense components.
Tags
all-other-miscellaneous-chemical-product, department-of-defense, tn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $124.8 million to KILGORE FLARES COMPANY LLC. CONTRACT AWARD FOR THE INFRARED COUNTERMEASURE (IRCM) FLARES, M206, MJU-7 AND MJU-10.
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 $124.8 million.
What is the period of performance?
Start: 2014-11-03. End: 2020-01-31.
What was the specific justification for excluding sources in the competition?
The justification for excluding sources in the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is critical. Without this information, it's difficult to assess if the exclusion was technically necessary, potentially limiting competition and impacting the final price paid by taxpayers. Further investigation into the contract file is warranted.
What is the projected obsolescence risk for these flares over the 5-year contract period?
Given the 5-year duration, the risk of technological obsolescence for the M206, MJU-7, and MJU-10 flares needs careful consideration. Military threat environments evolve, and countermeasures must remain effective. The contract should ideally include provisions for technology updates or performance reviews to mitigate this risk.
How does the per-unit cost compare to previous awards or industry benchmarks for similar flares?
A detailed comparison of the per-unit cost against historical awards for the same or similar IRCM flares, as well as against industry benchmarks, is essential for evaluating value for money. Without this comparative data, it's challenging to definitively state if the $124.7M award represents a fair and reasonable price.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J12R0184
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $124,750,864
Exercised Options: $124,750,864
Current Obligation: $124,750,864
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-11-03
Current End Date: 2020-01-31
Potential End Date: 2020-01-31 12:01:00
Last Modified: 2019-06-17
More Contracts from Kilgore Flares Company LLC
- Award Ircm Flares — $170.3M (Department of Defense)
- 200501!000058!2100!w52p1j!u.s. Army Industrial Operations !w52p1j04c0097 !A!N! !N! ! !20041020!20060315!824862254!824862254!618705925!n!kilgore Flares Company LLC !155 Kilgore Drive !toone !tn!38381!74640!069!47!toone !hardeman !tennessee !+000018431443!n!n!000000000000!1370!pyrotechnics !A6 !ammunition !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !a!n!j!2!003!n!3a!a!n!a! ! !N!C!N! ! ! !a!a!a!a!000!a!d!y! ! ! ! ! ! !0001! ! — $156.3M (Department of Defense)
- MJU-61 Flare Infrared Countermeasure — $51.3M (Department of Defense)
- Infrared Countermeasure Flares: M206 - NSN:1370-01-048-2138 AMD the Mju-7a/B - NSN: 1370-01-296-8395 — $41.3M (Department of Defense)
- Mju-53/B, NSN 1370-01-503-1455 — $34.6M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)