DoD Awards $200.6M for Small Arms Ammunition to Alliant Techsystems
Contract Overview
Contract Amount: $200,666,230 ($200.7M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2017-03-24
End Date: 2019-03-31
Contract Duration: 737 days
Daily Burn Rate: $272.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: 5.56MM/7.62MM MARCH AWARDS
Place of Performance
Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $200.7 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: 5.56MM/7.62MM MARCH AWARDS Key points: 1. Significant award for small arms ammunition manufacturing. 2. Alliant Techsystems is a major defense contractor. 3. Full and open competition was utilized. 4. Fixed price with economic price adjustment contract type. 5. Awarded by the Department of the Army.
Value Assessment
Rating: good
The total award amount is $200.6 million. Benchmarking against similar ammunition contracts is difficult without specific unit pricing, but the scale suggests a competitive bid process.
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: The competitive nature of the award suggests taxpayers are likely receiving fair value for the ammunition procured.
Public Impact
Ensures supply of critical ammunition for military operations. Supports domestic manufacturing capabilities for defense articles. Potential for price fluctuations due to economic price adjustment clause.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to cost overruns.
- Dependence on a single supplier for a critical item.
Positive Signals
- Full and open competition ensures best value.
- Award to established, experienced contractor.
Sector Analysis
This award falls within the defense manufacturing sector, specifically small arms ammunition. Spending in this area is driven by military readiness requirements and operational tempo.
Small Business Impact
The award was not made to a small business. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award was a delivery order under a larger contract vehicle. Oversight would focus on contract performance, delivery schedules, and adherence to the economic price adjustment terms.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Economic Price Adjustment (EPA) clause
- Potential for supply chain disruptions impacting delivery
- Dependence on a single contractor for a critical item
Tags
small-arms-ammunition-manufacturing, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $200.7 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. 5.56MM/7.62MM MARCH AWARDS
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 $200.7 million.
What is the period of performance?
Start: 2017-03-24. End: 2019-03-31.
What is the projected unit cost of the ammunition under this contract?
The provided data does not specify the unit cost or quantity of ammunition. The total award value of $200.6 million is for the entire delivery order. To determine unit cost, the number of rounds procured would be necessary. Without this, a precise per-unit cost benchmark cannot be established.
What are the risks associated with the economic price adjustment clause?
The economic price adjustment (EPA) clause allows for price changes based on fluctuations in economic factors, such as labor or material costs. The primary risk is that unforeseen inflation or supply chain disruptions could significantly increase the contract price beyond initial projections, leading to higher costs for the government and taxpayers.
How does this award contribute to military readiness?
This award directly contributes to military readiness by ensuring a consistent and substantial supply of essential small arms ammunition. Maintaining adequate stockpiles of ammunition is critical for training, operational deployments, and national defense, allowing military personnel to effectively execute their missions.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
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
Financial Breakdown
Contract Ceiling: $200,666,230
Exercised Options: $200,666,230
Current Obligation: $200,666,230
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J12D0078
IDV Type: IDC
Timeline
Start Date: 2017-03-24
Current End Date: 2019-03-31
Potential End Date: 2019-03-31 12:03:00
Last Modified: 2021-03-09
More Contracts from Alliant Techsystems Operations LLC
- Small Caliber Ammunition — $668.1M (Department of Defense)
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- Obligate Funding for the Improved 5.56MM Commercial Pack Phase III (project Execution Phase) — $584.2M (Department of Defense)
- Small Caliber Ammunition (5.56MM, 7.62MM, CAL .22, CAL. 30, CAL .45, CAL .50) — $582.2M (Department of Defense)
- Systems Engineering and Development — $569.0M (Department of Defense)
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