DoD's $61.8M R&D contract for advanced ammunition technology awarded to Alliant Techsystems

Contract Overview

Contract Amount: $12,375,139 ($12.4M)

Contractor: Northrop Grumman Innovation Systems LLC

Awarding Agency: Department of Defense

Start Date: 2001-08-06

End Date: 2010-08-31

Contract Duration: 3,312 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: 200111!000847!2100!AE30 !TACOM - PICATINNY !DAAE3001C1089 !A!N!*!Y! !20010806!20060630!618705925!618705925!618705925!N!ALLIANT TECHSYSTEMS !5050 LINCOLN DRIVE !EDINA !MN!55436!37825!105!55!JANESVILLE !ROCK !WISCONSIN !+000003342373!N!N!000000000000!AD13!RDTE/AMMUNITION-ADV TECH DEV !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!A! !A !U!U!2!003!N!3A!A!W!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! ! ! !0001!

Place of Performance

Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC for work described as: 200111!000847!2100!AE30 !TACOM - PICATINNY !DAAE3001C1089 !A!N!*!Y! !20010806!20060630!618705925!618705925!618705925!N!ALLIANT TECHSYSTEMS !5050 LINCOLN DRIVE !EDINA !MN!55436!37825!105!55!JANESVILLE !ROCK … Key points: 1. Contract focused on research and development for advanced ammunition technology. 2. Awarded through full and open competition, indicating a competitive bidding process. 3. The contract duration was substantial, spanning over 8 years. 4. The primary contractor, Alliant Techsystems, has a significant role in defense manufacturing. 5. The contract falls under the Research and Development sector for physical, engineering, and life sciences. 6. The contract was a definitive contract type, suggesting a long-term agreement for services or supplies.

Value Assessment

Rating: fair

The total value of $61.8 million over an 8-year period suggests a moderate annual spend. Benchmarking this against similar R&D contracts for advanced ammunition is difficult without more specific details on the scope of work. However, the cost-plus-fixed-fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as it allows the contractor to recover costs plus a fixed fee. The absence of detailed performance metrics makes a definitive value-for-money assessment challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was open, certain sources were excluded, which might warrant further investigation into the rationale. The presence of multiple bidders (3 indicated) is a positive sign for competition, suggesting that the government sought multiple proposals to ensure a competitive price and selection.

Taxpayer Impact: The competitive nature of the award, despite potential source exclusions, likely resulted in a more favorable price for taxpayers compared to a sole-source award. However, the exclusion of specific sources could have limited the ultimate level of competition and potential cost savings.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive advancements in ammunition technology. The services delivered include research and development aimed at improving the effectiveness and capabilities of ammunition. The geographic impact is primarily within the United States, with potential implications for defense manufacturing hubs. Workforce implications include employment for scientists, engineers, and technicians involved in R&D activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Full and Open Competition After Exclusion of Sources' designation requires scrutiny to understand why certain sources were excluded and if this impacted overall competition.
The Cost Plus Fixed Fee (CPFF) contract type can present cost overrun risks if not meticulously managed and monitored.
Lack of detailed performance data makes it difficult to assess the true effectiveness and return on investment of the R&D.

Positive Signals

Awarded through a competitive process, suggesting multiple vendors vied for the contract.
The contract duration of over 8 years indicates a long-term commitment to developing critical defense capabilities.
The focus on R&D for advanced ammunition aligns with the need for technological superiority in defense.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is characterized by significant government investment, driven by the need for technological advancement and national security. Comparable spending benchmarks would typically involve other large-scale R&D efforts within the defense industrial base, often involving specialized materials, propulsion, or advanced weapon systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large R&D contract, it is unlikely to have significant direct subcontracting opportunities for small businesses unless specified within the contract's statement of work, which is not detailed here. The primary contractor, Alliant Techsystems, is a large defense contractor, suggesting that the bulk of the work would be performed internally or with other large partners.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA), responsible for ensuring contractor compliance and performance. Accountability measures would be tied to the Cost Plus Fixed Fee structure, requiring detailed cost reporting and adherence to the R&D milestones. Transparency is often limited in defense R&D contracts due to national security considerations, but contract awards and basic details are usually publicly available through federal procurement databases.

Related Government Programs

Advanced Ammunition Development Programs
Department of Defense Research and Development Funding
Defense Technology Modernization Initiatives
Contracting for Munitions Research

Risk Flags

Potential limitation of competition due to source exclusion.
Cost risk associated with Cost Plus Fixed Fee (CPFF) contract type.
Lack of detailed performance metrics in public data.
Potential for classified or sensitive R&D scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC. 200111!000847!2100!AE30 !TACOM - PICATINNY !DAAE3001C1089 !A!N!*!Y! !20010806!20060630!618705925!618705925!618705925!N!ALLIANT TECHSYSTEMS !5050 LINCOLN DRIVE !EDINA !MN!55436!37825!105!55!JANESVILLE !ROCK !WISCONSIN !+000003342373!N!N!000000000000!AD13!RDTE/AMMUNITION-ADV TECH DEV !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3! ! ! !*!*!*!B!*!*!A!

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2001-08-06. End: 2010-08-31.

What specific advancements in ammunition technology were pursued under this contract?

The provided data does not specify the exact advancements in ammunition technology. The contract falls under NAICS code 541710 (Research and Development in Physical, Engineering, and Life Sciences) and is categorized under 'RDTE/AMMUNITION-ADV TECH DEV'. This suggests a broad scope covering areas like improved lethality, range, accuracy, safety, or novel warhead designs. Without access to the contract's statement of work or technical reports, the precise nature of the R&D remains undisclosed, which is common for classified or sensitive defense projects.

How does the $61.8 million contract value compare to similar R&D efforts in advanced ammunition?

Comparing the $61.8 million value requires context on the specific R&D scope. Large-scale ammunition R&D can range from tens of millions to hundreds of millions of dollars, depending on the complexity and duration. This contract, awarded over approximately 8 years (2001-2010), represents an average annual spend of roughly $7.7 million. This figure is moderate for advanced defense R&D, suggesting it might have focused on specific technological components or feasibility studies rather than full system development. Benchmarking against publicly available data for similar programs is challenging due to the proprietary and often classified nature of defense R&D.

What were the key performance indicators (KPIs) or milestones for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or milestones for this contract. For Cost Plus Fixed Fee (CPFF) contracts, especially in R&D, milestones are typically tied to the achievement of technical objectives, delivery of prototypes, successful testing phases, or completion of research reports. The government's oversight agency, likely the Defense Contract Management Agency (DCMA), would monitor progress against these agreed-upon milestones. The absence of explicit KPIs in the summary data highlights a common limitation in public contract information, where detailed performance metrics are often not disclosed.

What is the track record of Alliant Techsystems in fulfilling similar defense R&D contracts?

Alliant Techsystems (now part of Northrop Grumman) has a long and extensive track record in fulfilling defense contracts, including significant work in munitions and advanced technologies. Historically, the company has been a major supplier of ammunition and related systems to the U.S. military. While specific performance details for every contract are not always public, their sustained presence and numerous awards in this sector indicate a general capability to manage and execute complex defense R&D projects. Any assessment of their track record would involve reviewing past performance evaluations and any documented issues on prior government contracts.

Were there any significant cost overruns or performance issues reported for this contract?

The provided summary data does not contain information regarding cost overruns or performance issues for this specific contract. CPFF contracts inherently carry a risk of cost growth, as the contractor is reimbursed for actual costs incurred plus a fixed fee. Effective government oversight and contractor management are crucial to mitigate these risks. Without access to contract performance reports, Inspector General audits, or litigation records, it is impossible to determine if this contract experienced significant problems. The contract's completion date (2006, though the end date listed is 2010) might suggest it concluded without major unresolved issues, but this is speculative.

How did the 'exclusion of sources' in the competition affect the final contract price?

The phrase 'Full and Open Competition After Exclusion of Sources' implies that while the competition was generally open, specific potential bidders were deliberately excluded. The impact on the final contract price is difficult to quantify without knowing which sources were excluded and why. If highly capable or competitive sources were excluded, it could potentially lead to a higher price than if the competition had been entirely unrestricted. Conversely, exclusions might be based on security, capability, or other valid reasons that do not necessarily inflate costs. The fact that three bidders participated suggests some level of competition remained, but the exclusion warrants further inquiry into its justification and potential market impact.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Northrop Grumman Corporation

Address: 5050 LINCOLN DRIVE, EDINA, MN, 55436

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline