DoD's $618.7M contract for miscellaneous weapons manufacturing awarded to Alliant Techsystems

Contract Overview

Contract Amount: $88,733,592 ($88.7M)

Contractor: Northrop Grumman Innovation Systems LLC

Awarding Agency: Department of Defense

Start Date: 2002-02-22

End Date: 2007-12-30

Contract Duration: 2,137 days

Daily Burn Rate: $41.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200205!000060!5700!GM15 !AAC/WMK !F0863502C0049 !A!N! !N! !20020222!20040228!618705925!618705925!618705925!N!ALLIANT TECHSYSTEMS !5050 LINCOLN DRIVE !EDINA !MN!55436!37825!105!55!JANESVILLE !ROCK !WISCONSIN !+000007330182!N!N!000000000000!1095!MISCELLANEOUS WEAPONS !A5 !WEAPONS !3000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!004!B! !A!Y!A! ! !N!C!N! ! ! !C!D!A!A!000!A!C!Y! ! ! ! ! ! !0001!

Place of Performance

Location: KEYSER, MINERAL County, WEST VIRGINIA, 26726

State: West Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $88.7 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC for work described as: 200205!000060!5700!GM15 !AAC/WMK !F0863502C0049 !A!N! !N! !20020222!20040228!618705925!618705925!618705925!N!ALLIANT TECHSYSTEMS !5050 LINCOLN DRIVE !EDINA !MN!55436!37825!105!55!JANESVILLE !ROCK … Key points: 1. Contract value of $618.7 million over its life. 2. Awarded to Alliant Techsystems, a significant defense contractor. 3. Contract duration of 2137 days (approx. 5.8 years). 4. Classified under 'Miscellaneous Weapons' (NAICS 332993). 5. Awarded via full and open competition. 6. Firm Fixed Price contract type suggests defined scope and cost control.

Value Assessment

Rating: good

The contract's total value of $618.7 million over nearly six years indicates a substantial investment by the Department of Defense in miscellaneous weapons manufacturing. While specific performance metrics are not detailed, the firm fixed-price nature of the contract suggests a degree of cost certainty for the government. Benchmarking this against similar contracts for specialized weapons manufacturing would provide a clearer picture of value for money, but the scale implies a significant need and commitment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. The presence of four bids suggests a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the number of proposals received would further illuminate the intensity of the competition.

Taxpayer Impact: Full and open competition typically results in better pricing for taxpayers by fostering a competitive environment among potential suppliers.

Public Impact

Benefits the Department of Defense by ensuring a supply of miscellaneous weapons. Supports manufacturing activities and potentially jobs in the defense industrial base. Geographic impact is noted in Janesville, Wisconsin, where the contractor's facility is located. The contract contributes to the broader defense supply chain for munitions and weapon systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price nature.
Dependence on a single contractor for a critical defense capability.
Geopolitical shifts could impact demand or supply chain stability.

Positive Signals

Firm fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Long-term award indicates sustained need and potential for stable production.

Sector Analysis

The defense manufacturing sector is characterized by high technological requirements, stringent quality control, and significant government oversight. Contracts for weapons manufacturing, such as this one for miscellaneous weapons, are critical components of national security spending. The market size for defense manufacturing is substantial, with numerous large and small businesses contributing to the supply chain. This contract fits within the broader category of defense procurement, supporting the operational readiness of military forces.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The primary awardee, Alliant Techsystems, is a large defense contractor. While large prime contractors often engage small businesses for subcontracting, the specific impact on the small business ecosystem for this particular contract is not detailed in the provided data.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which provides contract administration services to the Department of Defense. Oversight mechanisms would typically include performance monitoring, quality assurance, and financial reviews. Transparency is generally maintained through contract award databases, though specific details of ongoing oversight are not publicly detailed.

Related Government Programs

Defense Procurement
Weapons Systems Manufacturing
Ammunition Manufacturing
Department of Defense Contracts
Federal Prime Contracts

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Dependence on specific raw materials could lead to supply chain vulnerabilities.
Firm Fixed Price contracts can be subject to change requests if scope evolves.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.7 million to NORTHROP GRUMMAN INNOVATION SYSTEMS LLC. 200205!000060!5700!GM15 !AAC/WMK !F0863502C0049 !A!N! !N! !20020222!20040228!618705925!618705925!618705925!N!ALLIANT TECHSYSTEMS !5050 LINCOLN DRIVE !EDINA !MN!55436!37825!105!55!JANESVILLE !ROCK !WISCONSIN !+000007330182!N!N!000000000000!1095!MISCELLANEOUS WEAPONS !A5 !WEAPONS !3000!NOT DISCERNABLE OR CLASSIFIED !332993!E! !3! ! ! ! ! !99990909!B

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 $88.7 million.

What is the period of performance?

Start: 2002-02-22. End: 2007-12-30.

What is the historical spending pattern for NAICS code 332993 (Ammunition (except Small Arms) Manufacturing) by the Department of Defense?

Historical spending by the Department of Defense under NAICS code 332993, 'Ammunition (except Small Arms) Manufacturing,' reveals a consistent and significant investment over the years. While this specific contract of $618.7 million awarded in 2002 is a notable single award, the DoD's overall expenditure in this category fluctuates based on geopolitical events, modernization programs, and readiness requirements. Analyzing broader DoD spending trends for this sector shows periods of increased procurement during active conflicts and sustained funding for maintaining stockpiles and developing new munitions. The $618.7 million represents a substantial portion of the annual spending in this category during the contract's performance period, highlighting its importance for meeting specific DoD requirements for miscellaneous weapons.

How does the awarded amount of $618.7 million compare to other contracts for miscellaneous weapons manufacturing?

The $618.7 million awarded to Alliant Techsystems for miscellaneous weapons manufacturing is a significant sum, placing it among larger contracts within this specific niche. While 'miscellaneous weapons' can encompass a broad range of items, contracts of this magnitude typically involve substantial production runs, complex integration, or specialized capabilities. Comparing this to other contracts requires access to a broader dataset of defense procurements. However, generally, contracts exceeding several hundred million dollars indicate a long-term need and a high level of trust in the contractor's ability to deliver. Smaller contracts in this category might focus on specific components, prototypes, or limited quantities, whereas this award suggests a more comprehensive and sustained requirement.

What are the key performance indicators (KPIs) typically used to assess the success of such a defense manufacturing contract?

Assessing the success of a defense manufacturing contract like this one typically involves several Key Performance Indicators (KPIs). Primary among these are on-time delivery rates, ensuring that the weapons are produced and delivered according to the contract schedule. Quality control is paramount, measured by defect rates, rejection rates during inspection, and adherence to stringent military specifications. Cost performance is also critical; for a Firm Fixed Price (FFP) contract, staying within the agreed budget is a key indicator, though deviations can occur due to unforeseen circumstances requiring contract modifications. Furthermore, operational readiness and reliability of the manufactured items in field conditions are crucial, often assessed through testing and user feedback. Finally, compliance with safety and environmental regulations during manufacturing is also monitored.

What is Alliant Techsystems' track record with similar Department of Defense contracts?

Alliant Techsystems (now part of Northrop Grumman Innovation Systems) has a long and extensive track record of performing contracts for the Department of Defense, particularly in areas related to munitions, aerospace, and defense electronics. Historically, the company has been a major supplier of various ordnance, including artillery shells, small arms ammunition, and advanced energetic materials. Their performance on numerous large-scale DoD contracts suggests a deep understanding of military requirements, rigorous quality control processes, and the capacity to manage complex production schedules. While specific performance details for every contract are not always public, their sustained presence as a prime contractor indicates a generally positive relationship and a history of successful delivery on critical defense programs.

What are the potential risks associated with a long-duration contract (2137 days) for weapons manufacturing?

Long-duration contracts for weapons manufacturing, such as this 2137-day award, carry several potential risks. Technological obsolescence is a significant concern; the threat landscape and military requirements can evolve rapidly, potentially rendering the manufactured items outdated before the contract concludes. Supply chain disruptions are another major risk, especially for specialized components or raw materials, which can be exacerbated over extended periods due to global events, supplier issues, or regulatory changes. Cost escalation, despite the firm fixed-price nature, can occur through contract modifications if unforeseen technical challenges arise or if the initial cost estimates did not fully account for long-term inflation or material price volatility. Furthermore, maintaining consistent quality and performance over several years requires robust program management and continuous oversight to prevent degradation. Finally, shifts in government priorities or budget constraints could lead to contract adjustments or termination.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: YES

Timeline