DoD Awards $209.5M for Lake City Army Ammunition Plant Production Base Support to Alliant Techsystems
Contract Overview
Contract Amount: $209,467,809 ($209.5M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2013-07-30
End Date: 2020-09-30
Contract Duration: 2,619 days
Daily Burn Rate: $80.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: AWARD OF PRODUCTION BASE SUPPORT (PBS) EFFORTS FOR LAKE CITY ARMY AMMUNITION PLANT (LCAAP)
Place of Performance
Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $209.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: AWARD OF PRODUCTION BASE SUPPORT (PBS) EFFORTS FOR LAKE CITY ARMY AMMUNITION PLANT (LCAAP) Key points: 1. Significant contract for essential ammunition production support. 2. Alliant Techsystems is a major defense contractor with extensive experience. 3. Potential for long-term reliance on a single supplier for critical components. 4. The defense sector relies on stable, high-volume production capabilities.
Value Assessment
Rating: good
The contract value of $209.5 million over approximately 7 years suggests a substantial investment. Benchmarking against similar production support contracts for large-scale manufacturing facilities is necessary for a precise assessment, but the scale indicates a significant, albeit potentially competitive, pricing structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair market prices by allowing multiple qualified vendors to submit proposals, driving down costs through market forces.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense materiel.
Public Impact
Ensures continued operation and production at a critical Army ammunition facility. Supports national defense readiness by maintaining a vital supply chain. Impacts the local economy in Missouri through jobs and related economic activity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases due to economic price adjustment clause.
- Long-term reliance on a single contractor for critical production support.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense infrastructure.
- Experienced contractor with proven capabilities.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on small arms ammunition production. Spending in this area is driven by national security requirements and geopolitical factors, with benchmarks often tied to production volume and facility maintenance costs.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). While the primary contractor is a large entity, opportunities for small businesses may exist further down the supply chain as subcontractors.
Oversight & Accountability
The Department of the Army's oversight is crucial for ensuring contract performance, cost control, and adherence to production schedules. Regular performance reviews and audits would be standard oversight mechanisms for a contract of this magnitude.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential cost overruns due to EPA clause.
- Dependence on a single contractor for critical support.
- Lack of direct small business participation in prime contract.
- Long contract duration may reduce flexibility.
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 $209.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. AWARD OF PRODUCTION BASE SUPPORT (PBS) EFFORTS FOR LAKE CITY ARMY AMMUNITION PLANT (LCAAP)
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 $209.5 million.
What is the period of performance?
Start: 2013-07-30. End: 2020-09-30.
What is the projected unit cost of ammunition produced under this contract, and how does it compare to industry benchmarks?
The provided data does not detail the unit cost of ammunition produced. To assess value, a breakdown of the contract's cost elements (labor, materials, overhead) would be needed. Comparing this to historical production costs at LCAAP and similar facilities would reveal efficiency and potential cost savings or overruns.
What are the specific risks associated with the 'economic price adjustment' clause in this fixed-price contract?
The economic price adjustment (EPA) clause allows for adjustments to the contract price based on fluctuations in specified economic factors, such as labor or material costs. The primary risk is that unforeseen or significant increases in these factors could lead to higher costs for the government, potentially exceeding initial budget projections and impacting overall program affordability.
How effectively does this contract ensure the long-term readiness and modernization of the Lake City Army Ammunition Plant?
This contract focuses on 'Production Base Support,' implying it covers the operational aspects necessary to maintain current production levels. Its effectiveness in ensuring long-term readiness and modernization depends on whether it includes provisions for facility upgrades, technology adoption, and workforce development, beyond routine maintenance and operational support.
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
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: $209,467,809
Exercised Options: $209,467,809
Current Obligation: $209,467,809
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: 2013-07-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2023-10-25
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