Army Awards $618.7M Contract for Ammunition Development to Alliant Techsystems Inc

Contract Overview

Contract Amount: $37,448,422 ($37.4M)

Contractor: Northrop Grumman Innovation Systems LLC

Awarding Agency: Department of Defense

Start Date: 2000-09-27

End Date: 2008-07-21

Contract Duration: 2,854 days

Daily Burn Rate: $13.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200012!2100!001031!AE30 !TACOM - PICATINNY !DAAE3000C1096 !A!*!* !20000927!20030927!618705925!618705925!618705925!N!* !ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!30140!053!27!HOPKINS !HENNEPIN !MINNESOTA !0001!+000000600000!N!N!000000000000!AD15!RDTE/AMMUNITION-ENG/MANUF DEVELOP !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8999!3!*!*!*!B!A!*!A !N!J!2!002!N!3A!Z!N!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC for work described as: 200012!2100!001031!AE30 !TACOM - PICATINNY !DAAE3000C1096 !A!*!* !20000927!20030927!618705925!618705925!618705925!N!* !ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!30140!053!27!HOPKINS !HEN… Key points: 1. The contract, valued at $618.7 million, is for research, development, test, and evaluation (RDTE) of ammunition. 2. Alliant Techsystems Inc. secured this contract through full and open competition after exclusion of sources. 3. The contract duration is 2854 days, spanning from September 27, 2000, to July 21, 2008. 4. This award falls under the 'RDTE/AMMUNITION-ENG/MANUF DEVELOP' category, indicating a focus on advanced development. 5. The primary contractor is Alliant Techsystems Inc., with Northrop Grumman Innovation Systems LLC listed as a competitor.

Value Assessment

Rating: good

The contract value of $618.7 million for RDTE services appears reasonable given the long duration and specialized nature of ammunition development. Benchmarking against similar R&D contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests that while competition was sought, specific sources may have been excluded for defined reasons, potentially impacting the breadth of price discovery.

Taxpayer Impact: The competitive nature of the award, even with exclusions, aims to secure fair pricing for taxpayers. The final price reflects negotiated terms based on the competitive process.

Public Impact

Taxpayers benefit from a competitive bidding process, aiming for cost-effectiveness in defense research and development. The contract supports advancements in ammunition technology, potentially enhancing military capabilities. The long contract duration suggests a sustained investment in a specific area of defense technology. The award to a single prime contractor, Alliant Techsystems Inc., highlights their role in a critical defense supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential impact of 'exclusion of sources' on competition.
Lack of detailed cost breakdown for RDTE activities.
Long contract duration may introduce risks related to technological obsolescence or cost overruns.

Positive Signals

Awarded through full and open competition, indicating a structured procurement process.
Significant investment in critical defense R&D.
Contractor has a history in defense manufacturing and development.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for ammunition. Spending in this area is crucial for maintaining technological superiority but can be subject to long development cycles and high costs.

Small Business Impact

The data does not indicate any specific subcontracting goals or awards to small businesses for this contract. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The contract was awarded by the Department of Defense (Army), suggesting oversight from a major federal agency. The 'exclusion of sources' clause warrants scrutiny to ensure fairness and compliance.

Related Government Programs

Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for limited competition due to source exclusions.
Long contract duration increases risk of cost escalation and technological obsolescence.
Lack of transparency on specific RDTE project goals and outcomes.
No clear indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC. 200012!2100!001031!AE30 !TACOM - PICATINNY !DAAE3000C1096 !A!*!* !20000927!20030927!618705925!618705925!618705925!N!* !ALLIANT TECHSYSTEMS INC !600 2ND ST NE !HOPKINS !MN!55343!30140!053!27!HOPKINS !HENNEPIN !MINNESOTA !0001!+000000600000!N!N!000000000000!AD15!RDTE/AMMUNITION-ENG/MANUF DEVELOP !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !8999!3!*!*!*!B!A!*!A !N!J!

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 $37.4 million.

What is the period of performance?

Start: 2000-09-27. End: 2008-07-21.

What specific technologies or capabilities does this ammunition development contract aim to advance, and how does this align with current military strategic needs?

The contract specifies 'RDTE/AMMUNITION-ENG/MANUF DEVELOP,' indicating a focus on enhancing existing ammunition or developing new types. This likely includes improvements in lethality, range, precision, or safety. The alignment with military needs would depend on the specific threat assessments and operational requirements at the time of the award, aiming to provide superior firepower and tactical advantages.

What were the primary reasons for excluding certain sources in the 'full and open competition after exclusion of sources' process, and did this exclusion limit potential cost savings?

Exclusions typically occur due to factors like proprietary technology, national security concerns, or specific technical expertise required. While intended to ensure the best fit for the requirement, excluding sources can limit the competitive landscape, potentially leading to higher prices than if a broader range of bidders were considered. The justification for exclusions would be detailed in procurement records.

How effectively has Alliant Techsystems Inc. managed the long-term R&D process and delivered on the technological objectives outlined in this contract?

Assessing the effectiveness requires reviewing performance reports, milestone achievements, and final deliverables against the contract's technical requirements. Given the 2000-2008 timeframe, a post-award review would be necessary to determine if the R&D objectives were met within budget and schedule, and if the developed technologies were successfully integrated into military arsenals.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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