DoD Awards $221M for 5.56mm Ammunition Production to Alliant Techsystems Operations LLC
Contract Overview
Contract Amount: $221,327,465 ($221.3M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2019-02-14
End Date: 2020-09-15
Contract Duration: 579 days
Daily Burn Rate: $382.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LAKE CITY ARMY AMMUNITION PLANT (LCAAP) PRODUCTION AWARD FOR SMALL CALIBER AMMUNITION (5.56MM REFERENCE ROUNDS AND ASSOCIATED TESTING).
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55446
Plain-Language Summary
Department of Defense obligated $221.3 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: LAKE CITY ARMY AMMUNITION PLANT (LCAAP) PRODUCTION AWARD FOR SMALL CALIBER AMMUNITION (5.56MM REFERENCE ROUNDS AND ASSOCIATED TESTING). Key points: 1. Significant contract for small caliber ammunition production. 2. Alliant Techsystems Operations LLC is the sole awardee. 3. Contract duration is approximately 19 months. 4. Awarded under full and open competition.
Value Assessment
Rating: good
The award amount of $221.3M for 5.56mm ammunition appears to be within a reasonable range for large-scale production, though specific per-unit cost benchmarks are not provided. Further analysis would require comparison to historical pricing for similar contracts and market rates.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.
Taxpayer Impact: The competitive nature of the award is expected to yield a fair price for taxpayers, ensuring value for money in the procurement of essential ammunition.
Public Impact
Ensures supply of critical 5.56mm ammunition for military operations. Supports domestic manufacturing capabilities for defense articles. Potential impact on the broader defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition
- Firm fixed price contract
- Significant award amount indicates substantial production volume
Sector Analysis
This contract falls within the defense manufacturing sector, specifically small arms ammunition. Spending benchmarks for this category can vary widely based on geopolitical factors, material costs, and specific ammunition types.
Small Business Impact
The data indicates that small business participation was not a specific requirement or noted outcome for this contract, as the awardee is a large corporation. Further investigation may be needed to understand any subcontracting opportunities for small businesses.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting existing oversight mechanisms. The firm fixed price contract type provides cost certainty, but monitoring production quality and delivery schedules remains crucial.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns if material prices fluctuate significantly.
- Risk of production delays impacting military readiness.
- Dependence on a single supplier for a critical defense item.
- Ensuring consistent quality and performance of ammunition.
Tags
small-arms-ammunition-manufacturing, department-of-defense, mn, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $221.3 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. LAKE CITY ARMY AMMUNITION PLANT (LCAAP) PRODUCTION AWARD FOR SMALL CALIBER AMMUNITION (5.56MM REFERENCE ROUNDS AND ASSOCIATED TESTING).
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 $221.3 million.
What is the period of performance?
Start: 2019-02-14. End: 2020-09-15.
What is the historical pricing trend for 5.56mm ammunition from this vendor or similar contracts?
Analyzing historical pricing data for 5.56mm ammunition from Alliant Techsystems Operations LLC and comparable contracts would provide a clearer picture of whether this $221.3M award represents a favorable price. Without this context, it's difficult to definitively assess value for money, though the firm fixed price and full competition are positive indicators.
What are the specific quality assurance and testing protocols for this ammunition award?
The contract specifies 'reference rounds and associated testing,' implying rigorous quality control. Detailed examination of the contract's quality assurance clauses, testing procedures, and acceptance criteria is necessary to mitigate risks related to ammunition performance and reliability, ensuring taxpayer funds are used for effective materiel.
How does this award align with the Department of the Army's overall ammunition procurement strategy and inventory needs?
Understanding the strategic context of this award within the Army's broader ammunition procurement plan is vital. This includes assessing whether the quantity and type of ammunition align with current operational demands, future projections, and existing inventory levels to ensure efficient resource allocation and avoid overstocking or shortages.
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: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 5000 CHESHIRE LN N, MINNEAPOLIS, MN, 55446
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: $221,327,465
Exercised Options: $221,327,465
Current Obligation: $221,327,465
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J12D0078
IDV Type: IDC
Timeline
Start Date: 2019-02-14
Current End Date: 2020-09-15
Potential End Date: 2020-09-15 12:09:00
Last Modified: 2024-02-28
More Contracts from Alliant Techsystems Operations LLC
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- Small Caliber Ammunition (5.56MM, 7.62MM, CAL .22, CAL. 30, CAL .45, CAL .50) — $582.2M (Department of Defense)
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