DoD's $56.5M software upgrade for GERMANY BLOCK 1 awarded to Alliant Techsystems Operations LLC

Contract Overview

Contract Amount: $56,530,544 ($56.5M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2020-10-15

End Date: 2025-01-31

Contract Duration: 1,569 days

Daily Burn Rate: $36.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GERMANY BLOCK 1 SOFTWARE UPGRADE

Place of Performance

Location: NORTHRIDGE, LOS ANGELES County, CALIFORNIA, 91324

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $56.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: GERMANY BLOCK 1 SOFTWARE UPGRADE Key points: 1. Contract awarded on a sole-source basis, raising questions about price competitiveness. 2. Long performance period of over 4 years suggests a significant, ongoing need. 3. Fixed-price contract type aims to control costs, but initial pricing needs scrutiny. 4. The contract falls under Engineering Services, a broad category with varying cost structures. 5. Awardee has a substantial contract history, indicating established performance. 6. Geographic location of performance in California for a Germany-based system is noteworthy.

Value Assessment

Rating: questionable

Benchmarking the value of this $56.5 million contract is challenging without more specific details on the software and its criticality. The sole-source award limits direct comparison to similar contracts. However, the fixed-price nature provides some cost certainty. The long duration of over four years suggests a significant investment, and the value will depend on the successful delivery and long-term utility of the software upgrade.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates. The lack of competition means there was no opportunity for price discovery through a bidding process, potentially leading to higher costs for the government compared to a competitive award.

Taxpayer Impact: The sole-source nature of this award means taxpayers did not benefit from the cost savings that often arise from competitive bidding processes. This could result in a less efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the upgraded software for operations related to GERMANY BLOCK 1. The contract delivers essential software upgrade services, aiming to enhance system functionality, security, and performance. While the system is for 'GERMANY BLOCK 1', the performance is located in California, impacting the local tech workforce there. The contract supports specialized IT and engineering roles within Alliant Techsystems Operations LLC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Long contract duration may increase risk of cost overruns if not managed tightly.
Performance location in California for a system related to Germany raises logistical and oversight questions.

Positive Signals

Fixed-price contract type provides cost predictability.
Awardee has a history of performing government contracts.
The contract addresses a specific, likely critical, system upgrade.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to IT and software development. The market for specialized defense software upgrades is often characterized by a limited number of highly qualified contractors. While the specific market size for 'GERMANY BLOCK 1' software is niche, the broader defense IT services market is substantial, with significant government spending allocated annually to maintain and upgrade complex systems.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large prime contractor like Alliant Techsystems Operations LLC suggests that small business participation is likely minimal unless explicitly mandated or voluntarily pursued by the prime.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. As a fixed-price contract, performance monitoring and acceptance of deliverables are key oversight mechanisms. Transparency is generally maintained through contract databases, but detailed operational oversight specifics are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Software Development Contracts
IT Services for Military Operations
Engineering Services for Weapon Systems
Alliant Techsystems Operations LLC Contracts

Risk Flags

Sole-source award
Potential for cost overruns due to long duration
Lack of public detail on specific functionalities and criticality

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. GERMANY BLOCK 1 SOFTWARE UPGRADE

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 $56.5 million.

What is the period of performance?

Start: 2020-10-15. End: 2025-01-31.

What specific functionalities does the GERMANY BLOCK 1 software upgrade entail, and how critical are these to current military operations?

The provided data does not specify the exact functionalities of the GERMANY BLOCK 1 software upgrade. However, given its award by the Department of Defense, it is likely related to command and control, intelligence, surveillance, reconnaissance, or logistical support systems critical for operational readiness. The criticality would be assessed by the DoD based on its role in mission success and potential impact of failure or degradation. Without further details, it's presumed to be of high importance to justify the significant investment and sole-source award.

How does the $56.5 million cost compare to similar software upgrade contracts within the DoD or for comparable international systems?

Direct comparison of this $56.5 million contract to similar software upgrade contracts is difficult due to the sole-source nature and lack of specific functional details. Typically, competitive bids for complex defense software upgrades can range from tens to hundreds of millions of dollars, depending on scope, complexity, and duration. The fixed-price nature suggests an attempt to cap costs. However, without knowing the specific system, its age, the scope of the upgrade (e.g., security patches, feature enhancements, platform migration), and the number of users, a precise value-for-money assessment against benchmarks is not feasible. The long performance period (over 4 years) also spreads the cost, making annual comparisons more relevant than a total contract value comparison.

What are the primary risks associated with a sole-source award for a critical software upgrade, and how are these mitigated?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Other risks include vendor lock-in, potential complacency from the contractor, and a lack of innovation spurred by competition. Mitigation strategies employed by the government often include rigorous negotiation of the contract terms, detailed cost analysis (if possible), establishing clear performance metrics and deliverables, and robust contract oversight. For this contract, the fixed-price structure aims to mitigate cost escalation, while the long duration necessitates strong program management and regular performance reviews to ensure the contractor remains accountable and delivers value.

What is the track record of Alliant Techsystems Operations LLC in delivering similar large-scale software and engineering services to the Department of Defense?

Alliant Techsystems Operations LLC (now part of Northrop Grumman) has a substantial track record of performing large-scale defense contracts, including those involving complex engineering and IT services. They are a major defense contractor with extensive experience across various platforms and systems. While specific details on their performance for 'GERMANY BLOCK 1' are not provided, their general history suggests they possess the technical capabilities and capacity to handle such projects. Government contract databases often contain performance ratings (e.g., CPARS) which would offer a more granular view of their past performance, but these are not publicly detailed here.

How does the performance location in California for a system designated for 'Germany' impact the contract's execution and oversight?

The discrepancy between the system's designation ('Germany') and the performance location ('California') suggests that the software development, testing, or integration work is being conducted domestically, likely at a facility within California operated by Alliant Techsystems Operations LLC. This is common for defense contracts where specialized engineering talent or infrastructure may be more readily available in the US. The impact on execution involves managing a geographically dispersed team or system interface if operational elements are in Germany. Oversight would require robust communication protocols, potentially virtual collaboration tools, and possibly site visits to ensure alignment and quality, with the primary contract administration likely managed from a US-based Navy contracting office.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: GUIDED MISSLES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $56,530,544

Exercised Options: $56,530,544

Current Obligation: $56,530,544

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $1,572,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0001917G0011

IDV Type: BOA

Timeline