DoD's $303M Alliant contract for IT services shows strong competition and fair value

Contract Overview

Contract Amount: $303,572,826 ($303.6M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2003-01-31

End Date: 2007-02-28

Contract Duration: 1,489 days

Daily Burn Rate: $203.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Place of Performance

Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $303.6 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: Key points: 1. Contract awarded to a single, highly capable prime contractor, suggesting specialized needs or a mature market. 2. The firm-fixed-price structure aligns incentives for cost control and predictable spending. 3. A long performance period indicates a strategic, long-term investment in IT capabilities. 4. The contract's value is substantial, requiring robust oversight to ensure continued value. 5. Competition dynamics appear favorable given the full and open award, likely driving competitive pricing. 6. Performance context is crucial; ongoing monitoring is needed to assess effective service delivery.

Value Assessment

Rating: good

The contract's total value of over $303 million over its duration suggests a significant investment. Benchmarking against similar large-scale IT service contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the firm-fixed-price award type generally indicates a commitment to predictable costs. Without specific per-unit data or comparison to market rates for the services rendered, a definitive assessment of pricing efficiency is challenging, but the competitive award process provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a healthy level of competition for this significant IT services requirement. This competitive environment is generally expected to drive more favorable pricing and innovative solutions for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best value. This process helps prevent overpayment and encourages cost-effectiveness.

Public Impact

The Department of Defense benefits from enhanced IT infrastructure and services, supporting its operational readiness. Military personnel and civilian employees gain access to improved technological tools and support. The contract likely supports a significant number of IT professionals, both directly and indirectly through the prime contractor and potential subcontractors. Geographic impact is likely widespread, supporting DoD operations across various locations. The contract contributes to the modernization of critical defense IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the long duration and single prime contractor.
Risk of scope creep if requirements are not tightly managed over the contract's life.
Dependence on a single contractor's financial stability and performance continuity.

Positive Signals

Firm-fixed-price contract structure incentivizes cost control.
Full and open competition suggests a robust bidding process.
Award to a known entity like Alliant suggests a track record of capability.
Long contract duration indicates strategic alignment with agency needs.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on IT services for a major federal agency. The IT services market is vast and highly competitive, with numerous large and small businesses offering a wide range of solutions. Contracts of this magnitude often involve complex system integration, cybersecurity, and support services. Benchmarking against other large IT service contracts awarded by the DoD or other federal agencies would provide further context on pricing and scope.

Small Business Impact

While the data indicates the prime contractor is Alliant Techsystems Operations LLC, it does not specify if this contract included small business set-asides or subcontracting goals. Large IT contracts often have subcontracting requirements to ensure small business participation. Further analysis would be needed to determine the extent of small business involvement and its impact on the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army's contracting and program management offices. Given its significant value and duration, robust oversight mechanisms, including performance monitoring, financial reviews, and potentially Inspector General involvement, are expected. Transparency would be enhanced through regular reporting requirements and contract performance reviews.

Related Government Programs

General Services Administration (GSA) IT Schedule contracts
Defense Information Systems Agency (DISA) IT support contracts
Other large-scale IT services contracts within the Department of Defense

Risk Flags

Long contract duration
Single prime contractor for a large scope
Potential for scope creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $303.6 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. See the official description on USAspending.

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 $303.6 million.

What is the period of performance?

Start: 2003-01-31. End: 2007-02-28.

What is the historical spending trend for this specific contract or similar IT services contracts awarded to Alliant Techsystems Operations LLC by the Department of the Army?

Analyzing historical spending for this contract requires access to detailed contract modification data and obligation records over its entire period of performance (January 31, 2003, to February 28, 2007). The initial award amount was $303,572,825.85. Without further data on modifications, task orders, or actual expenditures, it's difficult to establish a precise spending trend. However, the substantial initial award suggests a significant and consistent need for IT services throughout the contract's life. To provide a comprehensive trend, one would need to examine annual obligations against the ceiling, identify any significant surges or dips in spending, and compare this to the contract's projected value and scope. This analysis would reveal if spending aligned with expectations or if there were deviations requiring explanation.

How does the per-unit cost or overall value of this contract compare to other similar IT services contracts awarded by the DoD during the same period?

Comparing the value of this $303 million contract to other similar IT services contracts awarded by the DoD during its performance period (2003-2007) requires a benchmark analysis. Given the full and open competition and the firm-fixed-price structure, the initial award suggests a competitive pricing strategy. However, a true value comparison would involve dissecting the specific services procured (e.g., network management, software development, cybersecurity) and benchmarking their costs against comparable contracts. Factors like contract duration, scope complexity, and the specific technologies involved significantly influence pricing. Without detailed service breakdowns and access to a broader dataset of contemporaneous DoD IT contracts, a precise comparison is challenging. The number of bidders (3) indicates some level of competition, which generally supports reasonable pricing, but the ultimate value depends on the effectiveness and efficiency of the services delivered.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how has Alliant Techsystems Operations LLC performed against them?

Key Performance Indicators (KPIs) for IT services contracts typically include metrics related to system availability, response times for support, project completion rates, cybersecurity compliance, and user satisfaction. For this specific contract, the Department of the Army would have established KPIs outlined in the Performance Work Statement (PWS). Assessing Alliant Techsystems Operations LLC's performance against these KPIs would require reviewing performance reports, quality assurance surveillance plan (QASP) data, and any contractor performance assessment reporting system (CPARS) records. Without access to these internal DoD performance documents, it is impossible to definitively state how the contractor performed. However, the contract's continuation and completion suggest that performance was likely deemed acceptable, though specific details on exceeding or merely meeting expectations would necessitate a deeper dive into agency records.

What is the track record of Alliant Techsystems Operations LLC in delivering large-scale IT services contracts for the federal government, particularly within the Department of Defense?

Alliant Techsystems Operations LLC (now part of Northrop Grumman) has a long-standing history of delivering complex technology solutions and services to the federal government, including extensive work within the Department of Defense. They have been a significant player in various defense and intelligence programs, often securing large, multi-year contracts. Their track record generally includes expertise in areas such as aerospace, defense electronics, and information systems. For IT services specifically, their experience likely encompasses system integration, network operations, cybersecurity, and software development. Evaluating their performance on specific contracts, like this one, would involve examining past performance reviews (e.g., CPARS), contract awards, and any documented successes or challenges. Their continued presence in the federal contracting space suggests a generally positive track record, though specific contract outcomes can vary.

What are the potential risks associated with a sole prime contractor managing such a large IT services contract for an extended period?

The primary risks associated with a single prime contractor managing a large IT services contract over an extended period include potential vendor lock-in, reduced incentive for innovation if competition is stifled post-award, and increased impact if the contractor experiences financial difficulties or performance degradation. There's also a risk that the contractor may not maintain the most current technological expertise if not actively incentivized. Furthermore, a single point of failure can arise if the contractor's key personnel depart or if their organizational priorities shift. Robust contract management, including regular performance reviews, clear communication channels, and contingency planning, is essential to mitigate these risks. The government must remain vigilant in monitoring performance and ensuring the contractor continues to meet evolving requirements and maintain competitive awareness.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: HIGHWAY 7 & 78, INDEPENDENCE, MO, 05

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAA0999D0016

IDV Type: IDC

Timeline