DoD awards $22.5M for 25mm Automatic Guns to Alliant Techsystems, facing limited competition

Contract Overview

Contract Amount: $22,496,500 ($22.5M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2010-04-02

End Date: 2013-07-01

Contract Duration: 1,186 days

Daily Burn Rate: $19.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: M242 AUTOMATIC GUN, 25 MILLIMETER

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $22.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: M242 AUTOMATIC GUN, 25 MILLIMETER Key points: 1. Significant award for a critical defense component. 2. Alliant Techsystems is a major defense contractor. 3. Limited competition raises potential cost concerns. 4. Spending occurred over a 3-year period.

Value Assessment

Rating: fair

The contract value of $22.5 million for M242 Automatic Guns appears reasonable given the specialized nature of ordnance manufacturing. However, without specific per-unit cost data or comparison to similar recent awards, a definitive assessment of value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, indicating a limited source selection. This approach may have bypassed opportunities for price discovery through competitive bidding, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The lack of competition could result in a higher overall cost to taxpayers compared to a fully competed contract.

Public Impact

Ensures supply of essential weaponry for military operations. Supports a key defense industrial base manufacturer. Potential for increased costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of per-unit cost benchmark

Positive Signals

Award to established defense contractor
Addresses critical defense need

Sector Analysis

The defense sector, particularly ordnance manufacturing, involves highly specialized production and stringent quality controls. Spending benchmarks are difficult to establish due to the unique nature of military hardware, but significant investments are typical for advanced weapon systems.

Small Business Impact

This contract was awarded to a large business, Alliant Techsystems Operations LLC. There is no indication of small business participation in this specific award.

Oversight & Accountability

The award was made by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program management and contract administration to ensure delivery and quality standards are met.

Related Government Programs

Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition
Potential for inflated pricing
Lack of transparency in source selection
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. M242 AUTOMATIC GUN, 25 MILLIMETER

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 $22.5 million.

What is the period of performance?

Start: 2010-04-02. End: 2013-07-01.

What was the rationale for not competing this contract, and how was the price determined to be fair and reasonable?

The rationale for not competing the contract is not detailed in the provided data. Typically, non-competitive awards are justified by factors such as urgent need, sole-source availability of the item, or specific technical requirements. The price determination would have involved a cost analysis or price negotiation by the contracting officer, potentially referencing historical pricing or independent cost estimates.

What is the expected lifespan and operational impact of these 25mm automatic guns?

The provided data indicates the contract duration was 1186 days (approximately 3.25 years) for delivery. The operational impact of the M242 25mm automatic gun is significant, as it is a primary armament for various armored vehicles and aircraft, providing crucial firepower in combat engagements. Its reliability and effectiveness are vital for mission success.

Are there plans for future competition or alternative sourcing for this type of ordnance?

The data does not specify future competition plans. However, for critical defense systems like the M242, the Department of Defense often conducts market research and strategic sourcing analyses to ensure long-term availability and cost-effectiveness. Future solicitations may include competitive elements or explore alternative manufacturers if feasible and strategically advantageous.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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: $22,496,500

Exercised Options: $22,496,500

Current Obligation: $22,496,500

Contract Characteristics

Cost or Pricing Data: NO

Timeline