DoD awards $179M Alliant Techsystems contract for AGM-88E AARGM missiles, with no small business participation
Contract Overview
Contract Amount: $179,320,441 ($179.3M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2021-08-03
End Date: 2026-12-31
Contract Duration: 1,976 days
Daily Burn Rate: $90.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AGM-88E AARGM ALL UP ROUND (AUR)
Place of Performance
Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324
Plain-Language Summary
Department of Defense obligated $179.3 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: AGM-88E AARGM ALL UP ROUND (AUR) Key points: 1. Contract awarded to a single, large business, raising questions about competition. 2. The contract is for a specific missile system, indicating specialized defense needs. 3. No small business participation is noted, potentially limiting broader economic impact. 4. The firm-fixed-price structure aims to control costs for this high-value procurement.
Value Assessment
Rating: fair
The contract value of $179.3 million for the AGM-88E AARGM missile system is substantial. Benchmarking against similar advanced missile system procurements is difficult without more specific cost data, but the price appears within a reasonable range for such specialized defense hardware.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract is listed as 'NOT AVAILABLE FOR COMPETITION,' indicating a limited or sole-source procurement. This suggests that only one or a few vendors could meet the specific technical requirements, potentially impacting price discovery and limiting competitive pressure.
Taxpayer Impact: Taxpayer funds are being used for advanced defense procurement. The lack of competition may lead to higher costs than if multiple bids were solicited, though the firm-fixed-price contract aims to cap the total expenditure.
Public Impact
Enhances U.S. Navy's air-to-ground attack capabilities with advanced missile technology. Supports national defense objectives by procuring critical weaponry for naval aviation. Potential for job creation within the aerospace and defense manufacturing sector. Procurement of advanced munitions contributes to military readiness and deterrence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- No small business participation
Positive Signals
- Firm-fixed-price contract
- Long-term contract duration (through 2026)
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a highly specialized area of defense industrial base. Spending in this sector is driven by national security requirements and technological advancements, often involving significant R&D and high unit costs.
Small Business Impact
The contract explicitly states that small businesses are not participating (sb: false). This indicates that the prime contractor, Alliant Techsystems Operations LLC, is a large business and that subcontracting opportunities for small businesses were either not pursued or not mandated for this specific award.
Oversight & Accountability
The contract is managed by the Department of the Navy, a component of the Department of Defense. Oversight would typically involve program managers, contracting officers, and potentially Inspector General reviews to ensure compliance with terms and conditions, and to monitor performance and cost.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to lack of competition.
- Limited visibility into subcontracting opportunities for small businesses.
- Reliance on a single source may create supply chain vulnerabilities.
- Contract duration extends over several years, requiring ongoing monitoring.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $179.3 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. AGM-88E AARGM ALL UP ROUND (AUR)
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 $179.3 million.
What is the period of performance?
Start: 2021-08-03. End: 2026-12-31.
What specific technical or operational factors led to this contract being 'NOT AVAILABLE FOR COMPETITION'?
The 'NOT AVAILABLE FOR COMPETITION' designation suggests unique capabilities, proprietary technology, or specific integration requirements for the AGM-88E AARGM missile system that only Alliant Techsystems Operations LLC could fulfill. This could be due to patents, specialized manufacturing processes, or prior development investments that make alternative sourcing infeasible or prohibitively expensive.
How does the $179.3 million contract value compare to historical spending on similar advanced missile systems?
Benchmarking this contract's value requires detailed analysis of comparable advanced missile systems, considering factors like quantity, technological sophistication, and contract type. Without specific comparative data, it's challenging to definitively assess if $179.3 million is high or low. However, advanced guided munitions are inherently costly due to complex engineering and manufacturing.
What is the expected impact of this contract on the operational readiness and capabilities of the U.S. Navy?
This contract directly supports the U.S. Navy's operational readiness by procuring the AGM-88E AARGM, an advanced anti-radiation missile. Its integration enhances the Navy's ability to neutralize enemy air defense systems, thereby improving survivability and mission effectiveness for naval aviation assets in contested environments.
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 AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0001920R0028
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 9401 CORBIN AVE, NORTHRIDGE, CA, 91324
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: $186,751,693
Exercised Options: $179,320,441
Current Obligation: $179,320,441
Subaward Activity
Number of Subawards: 83
Total Subaward Amount: $63,406,315
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-08-03
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-11-17
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