DoD's $130M Small Arms Ammunition Contract Awarded to Alliant Techsystems Operations LLC
Contract Overview
Contract Amount: $130,145,731 ($130.1M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 1999-07-30
End Date: 2013-09-30
Contract Duration: 5,176 days
Daily Burn Rate: $25.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST NO FEE
Sector: Defense
Official Description: TAS::0 ::TAS
Place of Performance
Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $130.1 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: TAS::0 ::TAS Key points: 1. Significant contract value of $130.1 million over its life. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Long contract duration (1999-2013) may indicate stable, long-term needs. 4. No small business participation noted, potentially limiting broader economic impact.
Value Assessment
Rating: fair
The contract value of $130.1 million over 14 years suggests a substantial but potentially average per-year cost for ammunition manufacturing. Without specific unit cost data or comparison to similar large-scale ammunition procurements, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The 'FULL AND OPEN COMPETITION' indicates that multiple vendors were allowed to bid, which typically drives competitive pricing. The award to a single entity, Alliant Techsystems, suggests they offered the best value or met specific requirements.
Taxpayer Impact: Competition generally benefits taxpayers by driving down costs. The large value of this contract means even small percentage savings from competition can result in significant taxpayer savings.
Public Impact
Ensures a steady supply of small arms ammunition for the Department of the Army. Supports a major defense contractor, potentially impacting jobs and the defense industrial base. The long duration of the contract suggests consistent demand for these munitions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration could mask inefficiencies if not actively managed.
- Limited transparency on specific unit costs for detailed value analysis.
Positive Signals
- Awarded through full and open competition.
- Significant contract value indicates a critical need met.
- Stable supplier for essential defense materiel.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on ammunition. Spending benchmarks in this area are highly dependent on the type and quantity of ammunition, but $130 million over 14 years for small arms ammunition is a substantial commitment.
Small Business Impact
The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Alliant Techsystems, did not subcontract with small businesses for this specific award, potentially missing opportunities to leverage smaller, specialized firms.
Oversight & Accountability
The contract's long duration (1999-2013) necessitates robust oversight to ensure performance, quality, and cost control. While awarded through competition, ongoing monitoring by the Department of the Army would be crucial for accountability.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation.
- Long contract duration.
- Limited data on unit cost for detailed value analysis.
- Potential for sole-source dependency post-contract.
Tags
small-arms-ammunition-manufacturing, department-of-defense, mo, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $130.1 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. TAS::0 ::TAS
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 $130.1 million.
What is the period of performance?
Start: 1999-07-30. End: 2013-09-30.
What was the average annual spending on small arms ammunition under this contract, and how does it compare to industry benchmarks for similar procurements?
The total contract value was $130.1 million over approximately 14 years (1999-2013). This averages to roughly $9.3 million per year. Comparing this to industry benchmarks requires detailed knowledge of ammunition types, quantities, and market conditions during that period. However, this annual figure suggests a significant, consistent demand likely met by large-scale production capabilities.
Given the full and open competition, what factors led to Alliant Techsystems being the sole awardee, and were there any identified risks associated with this sole awardee?
Alliant Techsystems likely won due to offering the best combination of price, technical capability, and past performance, as determined by the Department of the Army's evaluation criteria. Risks associated with a sole awardee, even from competitive bidding, could include potential supply chain disruptions if the company faces issues, or reduced leverage for future negotiations if competition is not sustained.
How effectively did this contract fulfill the Department of the Army's need for small arms ammunition, and what was the overall taxpayer impact?
The contract's long duration and substantial value suggest it effectively met the Army's needs for a prolonged period. The taxpayer impact is generally positive when full and open competition leads to competitive pricing. However, without detailed cost analysis and performance metrics, a definitive assessment of 'effectiveness' and precise taxpayer savings is challenging.
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
Offers Received: 3
Pricing Type: COST NO FEE (S)
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
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1999-07-30
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2018-10-01
More Contracts from Alliant Techsystems Operations LLC
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