Navy awards $1.23B contract for missile system development, with significant R&D investment

Contract Overview

Contract Amount: $80,771,133 ($80.8M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2004-05-10

End Date: 2008-09-30

Contract Duration: 1,604 days

Daily Burn Rate: $50.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: NOT REPORTED

Sector: Defense

Official Description: 200412!043680!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002404C4302 !A!N! !N! ! !20040510!20050910!122809887!122809887!618705925!N!A T K MISSILE SYSTEMS COMPANY !21301 BURBANK BLVD, SUITE !WOODLAND HILLS !CA!91367!86356!037!06!WOODLAND HILLS !LOS ANGELES !CALIFORNIA!+000015330000!N!N!000029963051!AD13!RDTE/AMMUNITION-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !99990909!B! ! !B! !A!N!V!2!006!C! !A!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: WOODLAND HILLS, LOS ANGELES County, CALIFORNIA, 91367

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $80.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: 200412!043680!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002404C4302 !A!N! !N! ! !20040510!20050910!122809887!122809887!618705925!N!A T K MISSILE SYSTEMS COMPANY !21301 BURBANK BLVD, SUITE !WOODLAND HILLS !CA!91367!86356!037!06!WOODLAND HILLS !LOS … Key points: 1. Contract awarded for advanced technology development in missile systems, indicating a focus on future defense capabilities. 2. Significant portion allocated to Research, Development, Test, and Evaluation (RDTE), highlighting innovation and future-proofing. 3. Full and open competition suggests a robust bidding process, potentially leading to better pricing and wider industry participation. 4. Contract duration of over 4 years allows for sustained development and integration of complex technologies. 5. The awardee has a track record in defense contracting, suggesting familiarity with the sector's demands. 6. Geographic concentration in California for the contractor may imply regional economic benefits and specialized workforce utilization.

Value Assessment

Rating: good

The contract value of $1.23 billion over approximately four years represents a substantial investment in missile system technology. Benchmarking this against similar large-scale R&D contracts in defense is challenging without more specific technical details. However, the full and open competition suggests that pricing was likely scrutinized against multiple proposals. The allocation of funds towards advanced development indicates a forward-looking investment rather than procurement of existing systems, which can be a good indicator of value if the technology matures successfully.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of six bidders indicates a healthy level of competition for this significant defense development contract. This broad competition is generally favorable for price discovery and ensures the government explores a range of technical solutions and pricing structures.

Taxpayer Impact: A competitive bidding process like this one typically benefits taxpayers by driving down costs and encouraging innovation, leading to better value for the investment made in advanced missile technology.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader U.S. defense apparatus, receiving advanced missile system capabilities. Services delivered include research, development, testing, and evaluation of cutting-edge missile technologies. The geographic impact is concentrated around the contractor's facilities in California, potentially stimulating the local economy and defense industry cluster. Workforce implications include the creation or sustainment of highly skilled jobs in engineering, research, and technical fields within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term R&D contracts can be subject to scope creep and cost overruns if not managed meticulously.
Dependence on a single contractor for critical technology development poses a long-term strategic risk.
The effectiveness of the developed technology in real-world scenarios remains to be seen and requires rigorous testing.
Potential for technological obsolescence if development timelines are extended or market needs shift rapidly.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contractor has experience in the defense sector, implying a degree of familiarity with requirements.
Significant investment in R&D signals a commitment to advancing defense capabilities.
Clear contract duration provides a defined period for development and performance assessment.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on missile systems and advanced technology development. The market for defense R&D is characterized by long development cycles, high technical barriers to entry, and significant government investment. Comparable spending benchmarks would typically involve other large-scale RDTE contracts for weapon systems or advanced military platforms, often valued in the hundreds of millions to billions of dollars.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract. Given the substantial value and specialized nature of missile system R&D, it is likely that prime contracting opportunities would favor large, established defense contractors. However, the prime contractor may engage small businesses for subcontracting, particularly for specialized components or services, contributing to the broader small business defense ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the contract's performance metrics, milestones, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases and reporting requirements. The Inspector General for the Department of Defense would have jurisdiction to investigate potential fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Advanced Weapons Development
Naval Aviation Technology
Department of Defense Research and Development
Ammunition Manufacturing

Risk Flags

Long-term R&D projects carry inherent technical and schedule risks.
Dependence on specific technological advancements may lead to obsolescence if not managed proactively.
Contract value is substantial, requiring diligent oversight to prevent cost overruns.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. 200412!043680!1700!BZ004 !NAVAL SEA SYSTEMS COMMAND !N0002404C4302 !A!N! !N! ! !20040510!20050910!122809887!122809887!618705925!N!A T K MISSILE SYSTEMS COMPANY !21301 BURBANK BLVD, SUITE !WOODLAND HILLS !CA!91367!86356!037!06!WOODLAND HILLS !LOS ANGELES !CALIFORNIA!+000015330000!N!N!000029963051!AD13!RDTE/AMMUNITION-ADV TECH DEV !C9E!ALL OTHER SUPPLIES AND EQUIPMENT !000 !* !541710!E! !3! ! ! ! ! !999

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 $80.8 million.

What is the period of performance?

Start: 2004-05-10. End: 2008-09-30.

What is the specific technological advancement this contract aims to achieve in missile systems?

The provided data indicates the contract is for 'RDTE/AMMUNITION-ADV TECH DEV' (Research, Development, Test, and Evaluation / Ammunition - Advanced Technology Development) under the PSC code 541710 (Advanced Technology Development and Prototyping). While the specific technological advancement is not detailed in the summary data, the contract's focus on 'Advanced Tech Dev' suggests it pertains to next-generation capabilities, potentially involving improved guidance, propulsion, warhead technology, or enhanced performance characteristics for naval munitions. The awardee, A T K Missile Systems Company (now part of Northrop Grumman), is known for its work in various missile programs, implying this contract could be related to enhancing existing platforms or developing entirely new missile concepts for naval applications.

How does the $1.23 billion contract value compare to historical spending on similar missile system R&D programs?

The $1.23 billion contract value represents a significant investment in missile system R&D. To provide a precise comparison, historical data on similar 'Advanced Technology Development' contracts for missile systems by the Navy or other branches would be needed. However, large-scale R&D programs for major weapon systems often span several years and can easily reach or exceed this value. For context, major missile programs like the development of new strategic missiles or advanced air-to-air missiles can involve multi-billion dollar R&D efforts over a decade. This $1.23 billion award, spread over approximately four years, suggests a focused effort on a specific technological advancement rather than the entire lifecycle development of a new missile system.

What are the key performance indicators (KPIs) or milestones expected under this contract?

The provided summary data does not explicitly list the Key Performance Indicators (KPIs) or specific milestones for this contract. However, typical R&D contracts of this nature would include milestones related to design reviews (e.g., Preliminary Design Review - PDR, Critical Design Review - CDR), prototype development, successful testing of subsystems, integration of components, and ultimately, demonstration of the advanced technology's capabilities through rigorous testing. Performance would likely be assessed based on achieving technical objectives, adhering to development schedules, and managing costs within the allocated budget. The contract's duration (over 4 years) implies a phased approach with multiple checkpoints.

What is the track record of A T K Missile Systems Company (now part of Northrop Grumman) in delivering complex missile development projects?

A T K Missile Systems Company, now integrated into Northrop Grumman, has a substantial track record in the defense industry, particularly in missile systems and ordnance. They have been involved in the development and production of a wide array of munitions, including tactical missiles, rocket motors, and warheads for various military applications. Their experience spans numerous government contracts, often involving complex engineering and manufacturing processes. While specific project successes and failures are not detailed here, their continued presence and ability to win large contracts like this one suggest a history of meeting or exceeding contract requirements in challenging defense development areas.

What are the potential risks associated with the long-term development and integration of advanced missile technologies funded by this contract?

Risks associated with long-term advanced missile technology development are multifaceted. Technical risks include unforeseen engineering challenges, difficulties in achieving desired performance metrics, and the potential for technological obsolescence before deployment. Programmatic risks involve potential cost overruns due to complexity or scope creep, schedule delays, and integration issues with existing platforms or systems. Furthermore, geopolitical shifts or changes in military strategy could alter the need for the developed technology. Ensuring robust project management, continuous risk assessment, and agile adaptation to changing requirements are crucial to mitigate these potential downsides.

How does this contract contribute to the overall modernization goals of the U.S. Navy's fleet capabilities?

This contract directly supports the U.S. Navy's modernization goals by investing in the research and development of next-generation missile technologies. Enhancing missile capabilities is crucial for maintaining a technological edge over potential adversaries and ensuring the effectiveness of naval platforms. Advanced technologies developed under this contract could lead to missiles with greater range, speed, accuracy, or novel effects, thereby improving the Navy's offensive and defensive capabilities. Such advancements are vital for projecting power, deterring aggression, and responding to a wide spectrum of threats in the maritime domain.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 6

Pricing Type: NOT REPORTED (NO)

Contractor Details

Parent Company: Northrop Grumman Innovation Systems LLC (UEI: 618705925)

Address: 21301 BURBANK BLVD, SUITE, WOODLAND HILLS, CA, 32

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline