Army awards $618.7M contract to Alliant Techsystems for OH-58 Kiowa helicopter sustainment
Contract Overview
Contract Amount: $232,944,540 ($232.9M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2000-04-27
End Date: 2008-09-30
Contract Duration: 3,078 days
Daily Burn Rate: $75.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200008!2100!000510!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0016 !A!*!0004 !20000427!20010331!618705925!618705925!618705925!N!0MVU3!ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!18188!053!27!EDINA !HENNEPIN !MINNESOTA !0001!+000000661008!N!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !A1A!AIRFRAMES AND SPARES !1AHC!OH-58 KIOWA (AHIP) !3672!5!A!S!*!B!B!*!A !N!U!2!003!B!* !A!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $232.9 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: 200008!2100!000510!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0016 !A!*!0004 !20000427!20010331!618705925!618705925!618705925!N!0MVU3!ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!18188!053!27!EDINA !HEN… Key points: 1. The contract supports the sustainment of OH-58 Kiowa helicopters, a critical component of Army aviation. 2. Alliant Techsystems Inc. is the primary contractor, with a history of supporting defense programs. 3. The contract value of $618.7 million over its period of performance indicates significant investment in aviation readiness. 4. This spending falls within the broader defense sector, specifically focusing on rotary-wing aircraft sustainment.
Value Assessment
Rating: good
The contract value of $618,705,925 appears reasonable for a multi-year sustainment effort for a significant fleet of helicopters. Benchmarking against similar long-term aviation support contracts 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, suggesting a competitive bidding process that likely led to a fair price discovery. The specific award type is a 'Delivery Order'.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense capabilities.
Public Impact
Ensures continued operational readiness of the OH-58 Kiowa helicopter fleet for U.S. Army missions. Supports jobs and economic activity within the aerospace and defense industry, particularly at Alliant Techsystems. Contributes to the overall national security posture by maintaining critical aviation assets.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for cost overruns in long-term sustainment contracts.
- Dependence on a single contractor for critical helicopter support.
Positive Signals
- Awarded through full and open competition.
- Supports a vital military asset.
- Contractor has a strong track record in defense.
Sector Analysis
This contract falls under the Defense sector, specifically focusing on aircraft sustainment and readiness. Spending benchmarks for similar helicopter support contracts would typically be in the hundreds of millions over several years, aligning with this award.
Small Business Impact
While the primary contractor is a large entity, the execution of such a large contract likely involves numerous subcontracts, potentially creating opportunities for small businesses in the aerospace supply chain.
Oversight & Accountability
The Department of Defense and Department of the Army are responsible for oversight. Regular reporting and performance reviews are standard for contracts of this magnitude to ensure accountability and proper use of funds.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost growth over the contract duration.
- Dependence on a single prime contractor.
- Aging aircraft platform may require specialized and costly maintenance.
- Risk of component obsolescence impacting sustainment.
Tags
department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $232.9 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. 200008!2100!000510!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0016 !A!*!0004 !20000427!20010331!618705925!618705925!618705925!N!0MVU3!ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!18188!053!27!EDINA !HENNEPIN !MINNESOTA !0001!+000000661008!N!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !A1A!AIRFRAMES AND SPARES !1AHC!OH-58 KIOWA (AHIP) !3672!5!A!S!*!B!B!*!A !N!U!
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 $232.9 million.
What is the period of performance?
Start: 2000-04-27. End: 2008-09-30.
What is the projected lifespan and future role of the OH-58 Kiowa fleet that this contract supports?
The OH-58 Kiowa, while a workhorse, has been undergoing a transition with newer platforms like the AH-64 Apache and potentially future reconnaissance aircraft. Understanding the remaining service life and strategic importance of the Kiowa fleet is crucial for assessing the long-term value and necessity of this sustainment contract.
Are there any identified risks associated with the specific technologies or components being sustained under this contract?
Sustainment contracts for aging aircraft fleets can carry risks related to component obsolescence, availability of spare parts, and the need for specialized maintenance. A thorough risk assessment would examine these factors, along with potential supply chain disruptions or the emergence of more cost-effective technological upgrades.
How does the cost of sustaining the OH-58 Kiowa compare to the cost of acquiring and operating newer reconnaissance platforms?
A comprehensive cost-benefit analysis is essential. While sustaining existing platforms can seem cost-effective in the short term, the long-term operational and maintenance costs, coupled with potential performance limitations, need to be weighed against the investment in and operational costs of newer, potentially more capable, and efficient aircraft.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation (UEI: 967356127)
Address: HWY 7 & 78 LAKE CITY ARMY AMUNITION PLANT, INDEPENDENCE, MO, 64056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAA0999D0016
IDV Type: IDC
Timeline
Start Date: 2000-04-27
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2020-08-18
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