DoD's $63M Ammunition Purchase: Alliant Techsystems Secures Contract Amidst Full and Open Competition
Contract Overview
Contract Amount: $63,006,846 ($63.0M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2013-03-27
End Date: 2015-02-27
Contract Duration: 702 days
Daily Burn Rate: $89.8K/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: PURCHASE OF M788 AND M789 MEDIUM CALIBER
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $63.0 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: PURCHASE OF M788 AND M789 MEDIUM CALIBER Key points: 1. The Department of the Army awarded a $63M contract for medium caliber ammunition to Alliant Techsystems Operations LLC. 2. The contract was awarded under full and open competition after exclusion of sources, indicating a competitive bidding process. 3. The ammunition type falls under NAICS code 332993 (Ammunition (except Small Arms) Manufacturing). 4. The contract duration is 702 days, with a delivery period from March 2013 to February 2015. 5. The total award amount is $63,006,845.62.
Value Assessment
Rating: good
The contract value of $63M for medium caliber ammunition appears reasonable given the duration and the nature of the product. Benchmarking against similar ammunition contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while competition was sought, certain sources were initially excluded, potentially impacting the breadth of price discovery.
Taxpayer Impact: The competitive nature of the award suggests efforts to secure fair pricing for taxpayers, though the exclusion of sources warrants further scrutiny.
Public Impact
Ensures supply of critical medium caliber ammunition for Army operations. Supports defense manufacturing capabilities within the United States. The contract's duration suggests a sustained need for these munitions. Award to a single vendor, Alliant Techsystems, highlights their role in the defense supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Exclusion of sources in competition
- Lack of specific unit cost data for benchmarking
Positive Signals
- Full and open competition utilized
- Significant contract value awarded
- Clear product and manufacturer identified
Sector Analysis
The defense sector, particularly ammunition manufacturing, is characterized by specialized production and stringent quality requirements. Spending benchmarks for similar caliber ammunition can vary significantly based on quantity, specifications, and geopolitical factors.
Small Business Impact
The data indicates the prime contractor is Alliant Techsystems Operations LLC. There is no explicit information provided regarding subcontracting to small businesses on this specific award.
Oversight & Accountability
The award was a delivery order under a larger contract vehicle. Oversight would typically involve monitoring contract performance, delivery schedules, and adherence to specifications by the Department of the Army.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for reduced competition due to source exclusion.
- Lack of detailed cost breakdown for granular analysis.
- Contract awarded prior to current fiscal year.
- No explicit mention of small business participation.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $63.0 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. PURCHASE OF M788 AND M789 MEDIUM CALIBER
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 $63.0 million.
What is the period of performance?
Start: 2013-03-27. End: 2015-02-27.
What was the rationale for excluding specific sources in the 'full and open competition after exclusion of sources' process?
The rationale for excluding specific sources typically relates to factors such as proprietary technology, existing security clearances, specialized manufacturing capabilities, or previous performance issues. Without further documentation, the exact reasons for exclusion remain unclear, but it is a procedural step that can impact the competitive landscape and potentially the final price achieved.
How does the unit cost of this ammunition compare to industry benchmarks for similar caliber rounds?
A precise unit cost comparison is not possible without detailed specifications and quantity breakdowns. However, the total award of $63M over 702 days suggests a substantial volume. Industry benchmarks for medium caliber ammunition can range widely, from tens to hundreds of dollars per round depending on caliber, explosive fill, and intended use. Further analysis would require access to the specific contract line item details.
What is the potential impact on readiness if this ammunition supply chain were disrupted?
Disruption to the supply of M788 and M789 medium caliber ammunition could significantly impact the operational readiness of Army units reliant on these munitions for training and combat. Given the specialized nature of ammunition manufacturing and the long lead times often involved, a disruption could lead to shortages, affecting training schedules and potentially mission capabilities.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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, 55442
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,006,846
Exercised Options: $63,006,846
Current Obligation: $63,006,846
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $23,430,519
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J13D0037
IDV Type: IDC
Timeline
Start Date: 2013-03-27
Current End Date: 2015-02-27
Potential End Date: 2015-02-27 12:02:00
Last Modified: 2015-10-26
More Contracts from Alliant Techsystems Operations LLC
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