Army awards $618.7M for advanced ammunition technology development to Alliant Techsystems Inc

Contract Overview

Contract Amount: $111,942,578 ($111.9M)

Contractor: Northrop Grumman Innovation Systems LLC

Awarding Agency: Department of Defense

Start Date: 2000-08-04

End Date: 2009-09-30

Contract Duration: 3,344 days

Daily Burn Rate: $33.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200011!2100!000776!AE30 !TACOM - PICATINNY !DAAE3000C1065 !A!*!* !20000804!20040831!618705925!618705925!618705925!N!0MVU4!ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!30140!053!27!HOPKINS !HENNEPIN !MINNESOTA !0001!+000007480000!N!N!000000000000!AD13!RDTE/AMMUNITION-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !3484!3!*!*!*!B!A!*!D !N!R!1!001!N!1G!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!D!N!*!*!*!*!*!

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $111.9 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC for work described as: 200011!2100!000776!AE30 !TACOM - PICATINNY !DAAE3000C1065 !A!*!* !20000804!20040831!618705925!618705925!618705925!N!0MVU4!ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!30140!053!27!HOPKINS !HEN… Key points: 1. Contract awarded for research, development, testing, and evaluation of advanced ammunition technologies. 2. Significant portion of funding allocated to research and development (RDTE) activities. 3. Contractor has a substantial track record in defense contracting, suggesting relevant expertise. 4. Long contract duration of over 3 years indicates a complex and ongoing development effort. 5. The 'NOT COMPETED' status raises questions about potential cost efficiencies and market engagement. 6. Focus on ammunition advancement aligns with broader defense modernization priorities.

Value Assessment

Rating: fair

The total contract value of $618.7 million for advanced ammunition technology development is substantial. Benchmarking this against similar RDTE contracts for ammunition systems is challenging without more specific technical details. However, the 'NOT COMPETED' award type suggests a lack of competitive pressure, which could lead to less favorable pricing than a fully competed contract. The value appears to be in line with significant R&D efforts in the defense sector, but the absence of competition warrants scrutiny regarding value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT COMPETED,' indicating a sole-source procurement. This means that only one contractor, Alliant Techsystems Inc., was solicited and awarded the contract. The lack of competition means there was no opportunity for other qualified companies to bid, which can limit price discovery and potentially lead to higher costs for the government. The rationale for a sole-source award would typically involve unique capabilities or proprietary technology held by the awarded contractor.

Taxpayer Impact: The absence of competition means taxpayers did not benefit from potential cost savings that could arise from a bidding process among multiple vendors.

Public Impact

The U.S. Army benefits from advancements in ammunition technology, enhancing warfighter capabilities. Services delivered include research, development, testing, and evaluation of cutting-edge ammunition. Geographic impact is primarily within the U.S. defense industrial base, supporting specialized R&D facilities. Workforce implications include employment for scientists, engineers, and technicians involved in advanced defense technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
Sole-source awards can limit innovation by excluding potential new entrants.
Transparency regarding the justification for sole-source award could be improved.

Positive Signals

Contract awarded to a known entity with presumed expertise in defense R&D.
Focus on critical defense technology development aligns with national security objectives.
Long-term nature of the contract suggests a commitment to sustained technological advancement.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for ammunition. The defense industrial base heavily relies on specialized contractors for innovation in areas like ordnance and munitions. Spending in this category is often driven by modernization efforts and the need to maintain a technological edge. Comparable spending benchmarks would typically be found within the Army's R&D budget for weapon systems and munitions, often involving multi-year, high-value contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no explicit mention of subcontracting plans for small businesses. This suggests that the primary awardee, Alliant Techsystems Inc., is likely a large defense contractor. The absence of small business set-aside provisions means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially be involved as subcontractors if not explicitly excluded.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and potentially the Department of Defense's Inspector General. Accountability measures would be tied to the contract's performance metrics, milestones, and deliverables outlined in the agreement. Transparency is often limited for sole-source RDTE contracts due to the sensitive nature of the technology being developed, but contract award data is publicly available through systems like FPDS.

Related Government Programs

Army Ammunition Programs
Defense Research and Development
Advanced Weapons Technology
Ordnance Development Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Limited transparency on specific technology developed.
Potential for cost overruns in long-term R&D projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $111.9 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC. 200011!2100!000776!AE30 !TACOM - PICATINNY !DAAE3000C1065 !A!*!* !20000804!20040831!618705925!618705925!618705925!N!0MVU4!ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!30140!053!27!HOPKINS !HENNEPIN !MINNESOTA !0001!+000007480000!N!N!000000000000!AD13!RDTE/AMMUNITION-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPME!1000!NOT DISCERNABLE OR CLASSIFIED !3484!3!*!*!*!B!A!*!D !N!R!

Who is the contractor on this award?

The obligated recipient is NORTHROP GRUMMAN INNOVATION SYSTEMS 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 $111.9 million.

What is the period of performance?

Start: 2000-08-04. End: 2009-09-30.

What specific advanced ammunition technologies were developed under this contract?

The provided data does not specify the exact nature of the 'advanced ammunition technologies' developed. The contract description 'RDTE/AMMUNITION-ADV TECH DEV' indicates a focus on research, development, testing, and evaluation. This could encompass a wide range of innovations, such as improved propellants, enhanced warheads, smart munitions capabilities, reduced collateral damage technologies, or novel fusing mechanisms. Without access to the detailed contract statement of work or subsequent reports, the precise technological advancements remain undisclosed in this summary data.

What is the justification for awarding this contract on a sole-source basis?

The data indicates the contract was 'NOT COMPETED,' signifying a sole-source award. The specific justification for this determination is not provided in the summary data. Typically, sole-source procurements are justified when only one responsible source is available or capable of meeting the agency's needs. This could be due to proprietary technology, unique capabilities, urgent requirements where competition is not feasible, or if the contract is a follow-on to a previous sole-source award where the original justification still holds. A formal Justification for Other Than Full and Open Competition (JOFOC) would normally be required by federal acquisition regulations.

How does the total contract value of $618.7 million compare to similar ammunition R&D contracts?

The total contract value of $618.7 million is substantial for a research and development effort in the defense sector. However, direct comparisons to similar ammunition R&D contracts are difficult without more specific details about the scope, duration, and technological complexity of those other contracts. Defense R&D projects can vary widely in cost. Given that this was a sole-source award to Alliant Techsystems Inc. for advanced technology development, the value suggests a significant undertaking. Benchmarking would ideally involve analyzing the cost per research year or the cost of developing specific types of munitions, which requires more granular data than what is presented here.

What is Alliant Techsystems Inc.'s track record with similar defense contracts?

Alliant Techsystems Inc. (now part of Northrop Grumman) has a significant and extensive track record in the defense industry, particularly in areas related to munitions, aerospace, and defense electronics. They have historically been a major contractor for the U.S. Department of Defense, involved in developing and producing a wide array of weapon systems, including advanced munitions, missile components, and propulsion systems. Their experience suggests a strong capability to undertake complex R&D projects like the one described, although the specific performance on this particular contract would require further investigation into contract performance reports and historical data.

What were the performance outcomes or milestones achieved during the contract period (2000-2009)?

The provided data includes the award date (2000-08-04) and the initial estimated completion date (2004-08-31), with a final completion date of 2009-09-30, indicating a long duration. However, the summary data does not contain information on the specific performance outcomes, milestones achieved, or the overall success of the R&D efforts under this contract. Assessing performance would require accessing contract performance reports, technical reviews, or program office assessments that are not included in this dataset.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Address: 600 2ND ST NE, HOPKINS, MN, 03

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline