DoD awards $55.4M to Alliant Techsystems for AGM-88E missiles, citing limited competition
Contract Overview
Contract Amount: $55,435,000 ($55.4M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2011-10-31
End Date: 2013-09-30
Contract Duration: 700 days
Daily Burn Rate: $79.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AGM-88E AARGM ITALIAN COOPERATIVE LRIP III PROCUREMENT OF ALL-UP-ROUNDS(AUR'S), CAPTIVE AIR TRAINING MISSILES (CATM'S), AND RELATED SERVICES AND SUPPORT EQUIPMENT
Place of Performance
Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367
Plain-Language Summary
Department of Defense obligated $55.4 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: AGM-88E AARGM ITALIAN COOPERATIVE LRIP III PROCUREMENT OF ALL-UP-ROUNDS(AUR'S), CAPTIVE AIR TRAINING MISSILES (CATM'S), AND RELATED SERVICES AND SUPPORT EQUIPMENT Key points: 1. The contract is for advanced anti-radiation guided missiles (AARGM) and training variants. 2. This is a cooperative procurement with Italy, indicating international partnership in defense. 3. The award is a Firm Fixed Price type, providing cost certainty for the government. 4. The specific missile system suggests a focus on air-to-ground offensive capabilities.
Value Assessment
Rating: good
The contract value of $55.4 million for LRIP III procurement appears reasonable for specialized missile systems. Benchmarking against similar advanced missile procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, likely due to the cooperative nature with Italy and the specialized technology involved. This limits price discovery and potential savings.
Taxpayer Impact: Taxpayer funds are being used for a critical defense capability, with potential for cost efficiencies through international cooperation, though direct competition savings are foregone.
Public Impact
Enhances air-to-ground strike capabilities for the Navy and allied forces. Supports advanced electronic warfare and suppression of enemy air defenses. Represents continued investment in next-generation missile technology. Facilitates interoperability with Italian Air Force assets.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source justification not detailed
- Limited transparency on cost drivers
Positive Signals
- Cooperative procurement with ally
- Firm Fixed Price contract type
- Investment in advanced technology
Sector Analysis
This procurement falls within the Guided Missile and Space Vehicle Manufacturing sector, a high-technology area with significant R&D investment. Spending benchmarks are difficult without specific system comparisons, but defense missile systems are typically high-cost items.
Small Business Impact
The prime contractor, Alliant Techsystems Operations LLC, is a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The contract is managed by the Department of the Navy. Oversight would focus on program execution, delivery schedules, and adherence to the firm fixed price terms.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Limited competition restricts potential cost savings.
- Lack of detailed justification for sole-source award.
- Potential for cost overruns if not managed tightly.
- Dependence on international partner for production continuity.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $55.4 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. AGM-88E AARGM ITALIAN COOPERATIVE LRIP III PROCUREMENT OF ALL-UP-ROUNDS(AUR'S), CAPTIVE AIR TRAINING MISSILES (CATM'S), AND RELATED SERVICES AND SUPPORT EQUIPMENT
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 Navy).
What is the total obligated amount?
The obligated amount is $55.4 million.
What is the period of performance?
Start: 2011-10-31. End: 2013-09-30.
What is the specific justification for the limited competition, especially considering the cooperative nature with Italy?
The justification for limited competition likely stems from the unique capabilities of the AGM-88E AARGM system and the established cooperative development and production agreement with Italy. This implies that only a limited number of sources, or potentially only the incumbent, possess the necessary technology, manufacturing expertise, and security clearances to fulfill the requirements, especially within the context of a joint international program.
How does the per-unit cost of the AARGM compare to similar advanced anti-radiation missiles in the global market?
Without specific cost breakdowns or access to classified procurement data, a precise per-unit cost comparison is challenging. However, advanced guided missiles like the AARGM, incorporating sophisticated seeker technology and electronic warfare capabilities, are inherently expensive. Benchmarking would require detailed analysis of comparable systems from other nations or previous US procurements, considering factors like production volume and technological maturity.
What are the long-term strategic benefits and potential risks associated with this cooperative missile procurement program?
The strategic benefits include enhanced interoperability with a key ally, burden-sharing in defense development and production costs, and access to a critical air-to-ground weapon system. Potential risks involve program delays due to international coordination, differing national requirements, technology transfer concerns, and the long-term sustainment strategy for a jointly produced asset. Ensuring continued funding and political commitment from both nations is also crucial.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001911R0069
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)
Address: 21301 BURBANK BLVD STE 100, WOODLAND HILLS, CA, 32
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $55,435,000
Exercised Options: $55,435,000
Current Obligation: $55,435,000
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2011-10-31
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2014-01-06
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