DoD Awards $149M Contract for AGM-88G AARGM-ER Missiles to Alliant Techsystems
Contract Overview
Contract Amount: $149,141,513 ($149.1M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2021-09-14
End Date: 2024-12-31
Contract Duration: 1,204 days
Daily Burn Rate: $123.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AGM-88G AARGM-ER ALL UP ROUND (AUR)
Place of Performance
Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324
Plain-Language Summary
Department of Defense obligated $149.1 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: AGM-88G AARGM-ER ALL UP ROUND (AUR) Key points: 1. The contract is for the All Up Round (AUR) variant of the AGM-88G missile. 2. Alliant Techsystems Operations LLC is the sole awardee, indicating a lack of competition. 3. The contract is valued at $149.1 million and runs through December 2024. 4. This spending falls within the Guided Missile and Space Vehicle Manufacturing sector.
Value Assessment
Rating: fair
The contract is a firm-fixed-price definitive contract. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar advanced missile systems.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning Alliant Techsystems Operations LLC was the only source considered. This limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The lack of competition for this sole-source contract may result in higher costs for taxpayers compared to a competitively awarded contract.
Public Impact
Enhances U.S. Navy's standoff strike capability with advanced anti-radiation missile. Supports ongoing defense modernization efforts and readiness of naval aviation. Potential for future contract modifications and increased overall spending. Impacts the defense industrial base, specifically missile manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Firm-fixed-price contract without competitive benchmarking
Positive Signals
- Addresses critical defense need
- Supports advanced missile technology
- Long-term contract duration
Sector Analysis
This contract is within the Guided Missile and Space Vehicle Manufacturing sector, a critical component of national defense. Spending in this area is often characterized by high R&D costs and specialized manufacturing capabilities.
Small Business Impact
The awardee, Alliant Techsystems Operations LLC, is a large business. There is no indication of subcontracting opportunities for small businesses in the provided data, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
As a sole-source award, oversight is crucial to ensure fair pricing and effective execution. The Department of the Navy's contracting office is responsible for monitoring performance and costs.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing due to lack of competitive bidding.
- No clear indication of small business participation.
- Contract duration extends into late 2024, requiring ongoing monitoring.
- High value contract warrants close scrutiny of cost and performance.
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 $149.1 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. AGM-88G AARGM-ER 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 $149.1 million.
What is the period of performance?
Start: 2021-09-14. End: 2024-12-31.
What is the justification for the sole-source award, and what steps are being taken to ensure fair and reasonable pricing?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. The Department of the Navy should have documented this justification. To ensure fair pricing, they would likely rely on historical pricing data, independent cost estimates, or benchmarking against similar, albeit not identical, systems if available. Robust negotiation and contract surveillance are essential.
What is the projected lifecycle cost of the AGM-88G AARGM-ER program, considering potential future procurements and upgrades?
The current contract value is $149.1 million for a specific quantity and period. The total lifecycle cost will depend on the full program of record, including potential follow-on contracts for additional missiles, integration with various platforms, sustainment, training, and future upgrades. Without a comprehensive program baseline, estimating the full lifecycle cost is speculative but likely significantly higher than this initial award.
How does the performance and cost of the AGM-88G AARGM-ER compare to alternative standoff strike capabilities or previous missile variants?
The AGM-88G AARGM-ER is designed as an upgrade to existing anti-radiation missiles, offering extended range and improved capabilities. Direct cost comparisons are difficult without knowing the specific performance gains and the cost per unit in this sole-source award. However, advanced capabilities typically come at a premium. Its effectiveness will be measured against evolving threats and compared to the operational value derived from less expensive, but potentially less capable, legacy systems.
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: N0001920R0088
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: $149,260,684
Exercised Options: $149,141,513
Current Obligation: $149,141,513
Subaward Activity
Number of Subawards: 124
Total Subaward Amount: $77,567,011
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2021-09-14
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 00:00:00
Last Modified: 2025-11-13
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