Alliant Techsystems Operations LLC awarded $65.7M for AAR 47 Missile Warning System in FY10

Contract Overview

Contract Amount: $65,700,025 ($65.7M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2010-09-16

End Date: 2014-02-28

Contract Duration: 1,261 days

Daily Burn Rate: $52.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AAR 47 MISSILE WARNING SYSTEM, FY10 BUY

Place of Performance

Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $65.7 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: AAR 47 MISSILE WARNING SYSTEM, FY10 BUY Key points: 1. Contract awarded to a single vendor, raising questions about price discovery. 2. The contract is a firm fixed-price delivery order, providing cost certainty. 3. Duration of 1261 days suggests a long-term need for the system. 4. The system is related to search, detection, navigation, guidance, and aeronautical/nautical instruments. 5. Awarded by the Department of Defense, indicating a critical national security function. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: questionable

Benchmarking the value of this specific contract is challenging without comparable sole-source awards for the AAR 47 Missile Warning System. The firm fixed-price structure offers some cost control, but the lack of competition prevents a direct comparison of pricing against market alternatives. The total award amount of $65.7 million over approximately 3.5 years suggests a significant investment in this defense system. Further analysis would require understanding the system's capabilities and the necessity of a sole-source award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a rapid award. The lack of competition means that taxpayers did not benefit from potential cost savings that could arise from a competitive bidding process. It also limits the government's ability to explore alternative solutions or pricing structures.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's leverage in negotiating favorable terms.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the AAR 47 Missile Warning System. The contract delivers a critical missile warning system, enhancing situational awareness and defense capabilities. The geographic impact is likely global, supporting military operations wherever deployed. Workforce implications may include specialized technical roles for installation, maintenance, and operation of the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the procurement process due to non-competitive nature.
Potential for vendor lock-in given the specialized nature of defense systems.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded to a known entity, Alliant Techsystems Operations LLC, suggesting established capabilities.
Long contract duration indicates a sustained need and potential for ongoing support.

Sector Analysis

The defense industry is characterized by complex, high-value contracts for specialized systems. The AAR 47 Missile Warning System falls within the broader category of aerospace and defense electronics manufacturing, specifically focusing on detection and guidance instruments. The market for such systems is often dominated by a few key players due to high barriers to entry, including technological expertise, security clearances, and extensive research and development costs. Spending in this sector is driven by national security priorities and technological advancements.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like Alliant Techsystems Operations LLC suggests that the primary focus was on the prime contractor's capabilities. This may limit opportunities for small businesses to participate directly in this specific contract, although they might be involved further down the supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contract management agencies, such as the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm fixed-price contract type, which places the risk of cost overruns on the contractor. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Aerospace Electronics
Defense Warning Systems
Military Aircraft Components
Navigation and Guidance Systems

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns (mitigated by FFP)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.7 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. AAR 47 MISSILE WARNING SYSTEM, FY10 BUY

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $65.7 million.

What is the period of performance?

Start: 2010-09-16. End: 2014-02-28.

What is the track record of Alliant Techsystems Operations LLC with the Department of Defense for similar systems?

Alliant Techsystems Operations LLC (now part of Northrop Grumman) has a long history of contracting with the Department of Defense, particularly in areas related to aerospace and defense systems. While specific details on their track record with the AAR 47 Missile Warning System are not provided in this data snippet, the company has been a significant defense contractor involved in various programs including munitions, advanced materials, and integrated systems. Their experience in complex defense manufacturing suggests a capacity to handle such contracts. However, a deeper dive into their performance history on similar sole-source or competed contracts would be necessary for a comprehensive assessment of their reliability and value delivery in this specific domain.

How does the $65.7 million award compare to other missile warning system procurements?

Direct comparison of the $65.7 million award for the AAR 47 Missile Warning System is difficult without knowing the specific capabilities and scope of the system, as well as the contract duration and year of award. Missile warning systems can vary significantly in complexity and cost. For instance, larger, more integrated systems with advanced sensor suites and global coverage would naturally command higher prices than localized or less sophisticated systems. The fact that this was a sole-source award also complicates direct benchmarking, as competitive procurements often yield lower prices. To provide a meaningful comparison, one would need to identify similar systems procured competitively or sole-source around the same period, considering factors like system functionality, quantity, and contract type.

What are the primary risks associated with a sole-source award for a critical defense system like the AAR 47?

The primary risks associated with a sole-source award for a critical defense system like the AAR 47 Missile Warning System include inflated pricing due to the lack of competition, potential for reduced innovation as the contractor faces less pressure to improve or offer alternatives, and a higher risk of vendor lock-in. Without competitive pressure, the contractor may have less incentive to control costs or deliver the best possible value. Furthermore, if the sole-source contractor experiences financial difficulties or operational issues, the government has limited recourse and may face significant disruption in acquiring or maintaining a critical defense capability. Ensuring robust oversight and negotiation is crucial to mitigate these risks.

What is the expected effectiveness or performance of the AAR 47 Missile Warning System?

The provided data identifies the contract as being for the 'AAR 47 MISSILE WARNING SYSTEM' and notes its classification under NAICS code 334511 (Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing). While the data confirms the system's purpose is missile warning, it does not detail its specific performance metrics, capabilities, or expected effectiveness. Missile warning systems are designed to detect incoming threats, such as missiles, and provide timely alerts to enable defensive actions. The effectiveness of the AAR 47 would depend on factors like its detection range, accuracy, false alarm rate, integration with other defense platforms, and reliability in various operational environments. Detailed performance specifications and testing results would be required to assess its expected effectiveness.

How has federal spending on missile warning systems evolved over time, and where does this contract fit?

Federal spending on missile warning systems has generally been a consistent and significant component of the defense budget, driven by evolving geopolitical threats and technological advancements. Spending fluctuates based on modernization programs, new system development, and the procurement of existing technologies. This $65.7 million award in FY10 for the AAR 47 system represents a specific procurement action within the broader category of missile defense and early warning capabilities. It reflects the government's investment in maintaining and upgrading its threat detection infrastructure during that fiscal year. To understand its place in the evolution of spending, one would need to analyze historical and projected budgets for similar systems and the overall missile defense portfolio.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing

Product/Service Code: COMM/DETECT/COHERENT RADIATION

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: 13133 34TH ST N, CLEARWATER, FL, 33762

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

Financial Breakdown

Contract Ceiling: $65,700,025

Exercised Options: $65,700,025

Current Obligation: $65,700,025

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001910D0006

IDV Type: IDC

Timeline