DoD Awards $41.3M for Infrared Countermeasure Flares, Kilgore Flares Company LLC Secures Contract

Contract Overview

Contract Amount: $41,284,507 ($41.3M)

Contractor: Kilgore Flares Company LLC

Awarding Agency: Department of Defense

Start Date: 2021-02-10

End Date: 2023-07-31

Contract Duration: 901 days

Daily Burn Rate: $45.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INFRARED COUNTERMEASURE FLARES: M206 - NSN:1370-01-048-2138 AMD THE MJU-7A/B - NSN: 1370-01-296-8395

Place of Performance

Location: TOONE, HARDEMAN County, TENNESSEE, 38381

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $41.3 million to KILGORE FLARES COMPANY LLC for work described as: INFRARED COUNTERMEASURE FLARES: M206 - NSN:1370-01-048-2138 AMD THE MJU-7A/B - NSN: 1370-01-296-8395 Key points: 1. Contract awarded to Kilgore Flares Company LLC for essential infrared countermeasure flares. 2. The Department of the Army is the primary procuring agency. 3. This award represents a significant investment in defense capabilities. 4. The flares are crucial for protecting aircraft from heat-seeking missiles.

Value Assessment

Rating: good

The contract's total value of $41.3 million appears reasonable given the specialized nature of infrared countermeasure flares and the duration of the contract. Benchmarking against similar defense procurements for expendable countermeasures would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: Taxpayers benefit from competitive pricing achieved through an open bidding process for critical defense equipment.

Public Impact

Enhances aviation safety for military personnel by providing advanced threat protection. Supports the readiness of the U.S. Army's aviation assets. Contributes to the domestic supply chain for essential defense materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for price increases in future contract renewals.
  • Dependence on a single supplier for critical components.

Positive Signals

  • Awarded through full and open competition.
  • Supports critical defense mission requirements.
  • Long-term contract ensures supply continuity.

Sector Analysis

The defense sector, particularly expendable countermeasures, requires specialized manufacturing capabilities. Spending in this area is driven by threat assessments and the need to maintain technological superiority for aircraft survivability.

Small Business Impact

This contract was awarded to a large business, Kilgore Flares Company LLC. There is no indication of small business subcontracting in the provided data.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a transparent procurement process. Oversight would typically involve monitoring delivery schedules, quality control, and adherence to contract terms by the Department of the Army.

Related Government Programs

  • All Other Miscellaneous Chemical Product and Preparation Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential for sole-source dependency in the future.
  • Reliance on a single contractor for critical defense materiel.
  • Vulnerability to supply chain disruptions.
  • Need for continuous assessment of countermeasure effectiveness against evolving threats.

Tags

all-other-miscellaneous-chemical-product, department-of-defense, tn, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.3 million to KILGORE FLARES COMPANY LLC. INFRARED COUNTERMEASURE FLARES: M206 - NSN:1370-01-048-2138 AMD THE MJU-7A/B - NSN: 1370-01-296-8395

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 $41.3 million.

What is the period of performance?

Start: 2021-02-10. End: 2023-07-31.

What is the historical price trend for these specific flares, and how does the current award compare to previous contract values?

Analyzing historical pricing data for the M206 and MJU-7A/B flares is crucial for a comprehensive value assessment. Without this historical context, it's difficult to definitively state if the current $41.3 million award represents a favorable price point compared to past procurements. Factors like inflation, material costs, and changes in threat environments can influence price fluctuations over time.

What are the specific risks associated with relying on Kilgore Flares Company LLC for such a critical defense component?

Key risks include potential supply chain disruptions if Kilgore faces production issues or if their sole-source manufacturing capability is compromised. There's also a risk of price escalation in future contracts if competition diminishes or if raw material costs increase significantly. Ensuring robust quality control and timely delivery is paramount to mitigate operational risks.

How effective are these flares in countering modern infrared-guided threats, and has their effectiveness been independently verified?

The effectiveness of M206 and MJU-7A/B flares is critical for aircraft survivability. While these flares are standard issue, their efficacy against the latest generation of heat-seeking missiles should be continuously evaluated. Independent testing and threat assessment updates are necessary to ensure these countermeasures remain relevant and effective against evolving threats.

Industry Classification

NAICS: ManufacturingOther Chemical Product and Preparation ManufacturingAll Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Compagnie Industrielle DE Delle

Address: 155 KILGORE DR, TOONE, TN, 38381

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

Financial Breakdown

Contract Ceiling: $41,284,507

Exercised Options: $41,284,507

Current Obligation: $41,284,507

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J21D0010

IDV Type: IDC

Timeline

Start Date: 2021-02-10

Current End Date: 2023-07-31

Potential End Date: 2023-07-31 12:07:00

Last Modified: 2025-09-29

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