Army awards $433M for ammunition, with Alliant Techsystems as primary contractor

Contract Overview

Contract Amount: $433,008,502 ($433.0M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2005-11-01

End Date: 2009-05-30

Contract Duration: 1,306 days

Daily Burn Rate: $331.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200602!000089!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0016 !A!N! !N!0016 !01 !20051101!20081231!012705963!012705963!618705925!N!ALLIANT LAKE CITY SMALL CALIBE!HIGHWAY 7 & 78 !INDEPENDENCE !MO!64051!35000!095!29!INDEPENDENCE !JACKSON !MISSOURI !+000001039523!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !NOT DISCERNABLE !332992!E! !5!A!S!D! ! !99990909!B! ! !N!Z!A!N!J!2!003!A! !A!N!C! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: INDEPENDENCE, JACKSON County, MISSOURI, 64051

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $433.0 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: 200602!000089!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0016 !A!N! !N!0016 !01 !20051101!20081231!012705963!012705963!618705925!N!ALLIANT LAKE CITY SMALL CALIBE!HIGHWAY 7 & 78 !INDEPENDENCE !MO!64051!35000!095!29!INDEPENDENCE !JACK… Key points: 1. The contract focuses on ammunition, a critical component for military operations. 2. Alliant Techsystems Operations LLC is the sole awardee, indicating a potentially limited competition landscape. 3. The contract value of $433M suggests significant investment in this area. 4. The duration of over 3 years points to sustained demand for these supplies.

Value Assessment

Rating: fair

The contract value of $433,005,925.00 for ammunition over approximately 3.5 years appears substantial. Benchmarking against similar large-scale ammunition procurements would be necessary for a precise assessment, but the scale suggests a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the data indicates a single awardee, Alliant Techsystems Operations LLC, suggesting that only one offer was received or deemed acceptable.

Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers, though the final price is dependent on the number and quality of bids received.

Public Impact

Ensures continued supply of essential ammunition for U.S. Army operations. Supports jobs and economic activity related to defense manufacturing. Potential for price fluctuations based on market conditions for raw materials. Impacts readiness and operational capabilities of military forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only one bid was received.
Price stability of raw materials for ammunition production.
Long-term sustainment and obsolescence of ammunition types.

Positive Signals

Awarded under full and open competition.
Contract duration provides supply chain stability.
Significant value indicates critical need.

Sector Analysis

This contract falls within the defense sector, specifically focusing on the procurement of ammunition. Spending in this area is directly tied to military readiness and operational requirements, with significant government investment typical for such essential supplies.

Small Business Impact

While the primary awardee is a large corporation, the contract may indirectly benefit small businesses through subcontracts for raw materials, components, or specialized services. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of Defense and Department of the Army are responsible for oversight. The contract's duration and value necessitate regular performance reviews and financial audits to ensure accountability and proper use of funds.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for sole-source situation despite 'full and open' designation.
Price volatility of raw materials impacting final cost.
Risk of obsolescence for specific ammunition types over contract duration.
Dependence on a single contractor for critical supplies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $433.0 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. 200602!000089!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0999D0016 !A!N! !N!0016 !01 !20051101!20081231!012705963!012705963!618705925!N!ALLIANT LAKE CITY SMALL CALIBE!HIGHWAY 7 & 78 !INDEPENDENCE !MO!64051!35000!095!29!INDEPENDENCE !JACKSON !MISSOURI !+000001039523!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !NOT DISCERNABLE !332992!E! !5!A!S!D! ! !999

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 $433.0 million.

What is the period of performance?

Start: 2005-11-01. End: 2009-05-30.

What was the specific reason for only one bid being received under full and open competition?

Investigating the reason for a single bid under full and open competition is crucial. Potential factors include highly specialized requirements, limited qualified sources, or market conditions that discouraged other bidders. Understanding this will clarify if the competition was truly robust or if there were underlying market limitations affecting price discovery and overall value for the government.

How does the per-unit cost of this ammunition compare to industry benchmarks for similar products?

Benchmarking the per-unit cost against industry standards for comparable ammunition types is essential for assessing value. If costs are significantly higher, it could indicate inefficiencies or a lack of competitive pressure. Conversely, competitive pricing would validate the procurement strategy and demonstrate responsible stewardship of taxpayer funds.

What are the long-term implications of this contract on the Army's ammunition inventory and future procurement strategies?

The long-term implications involve ensuring the Army maintains adequate and modern ammunition stocks. This contract's success could influence future procurement strategies, potentially leading to similar large-scale awards or prompting diversification of suppliers to mitigate risks associated with single-source reliance and ensure sustained readiness.

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: 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

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DAAA0999D0016

IDV Type: IDC

Timeline