DoD's $129M Small Arms Ammunition Contract Awarded to Alliant Techsystems Operations LLC
Contract Overview
Contract Amount: $129,459,697 ($129.5M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2006-06-28
End Date: 2014-12-30
Contract Duration: 3,107 days
Daily Burn Rate: $41.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TECHNOLOGY DEVELOPMENT-TD
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $129.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: TECHNOLOGY DEVELOPMENT-TD Key points: 1. Significant investment in ammunition manufacturing technology development. 2. Alliant Techsystems Operations LLC is a major defense contractor. 3. Potential for long-term reliance on a single supplier for critical components. 4. Focus on firm fixed price contracts suggests cost control efforts.
Value Assessment
Rating: good
The contract value of $129.5 million over 8 years suggests a substantial investment. Benchmarking against similar ammunition development contracts is difficult without more specific technical details, but the duration and scope appear reasonable for technology development.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to yield fair pricing and access to the best available technology.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense needs.
Public Impact
Ensures a domestic supply of small arms ammunition for the military. Supports technological advancements in ammunition manufacturing. Contributes to the readiness and operational capabilities of defense forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price escalation if not managed.
- Reliance on a single entity for critical technology development.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract provides cost certainty.
- Significant investment in technology development.
Sector Analysis
This contract falls within the defense sector, specifically focusing on the manufacturing of small arms ammunition. Spending in this area is critical for military readiness and is often subject to long-term strategic planning and procurement cycles.
Small Business Impact
The contract was awarded to Alliant Techsystems Operations LLC, a large business. There is no indication of subcontracting opportunities for small businesses within the provided data, which could be a missed opportunity for economic inclusion.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency, indicating standard oversight for a Department of Defense procurement. The firm fixed price structure and competitive award suggest mechanisms for accountability.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration.
- Sole awardee for technology development.
- Lack of explicit small business subcontracting data.
- Potential for vendor lock-in.
Tags
small-arms-ammunition-manufacturing, department-of-defense, mn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $129.5 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. TECHNOLOGY DEVELOPMENT-TD
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $129.5 million.
What is the period of performance?
Start: 2006-06-28. End: 2014-12-30.
What specific technological advancements were pursued under this contract, and what is their current operational impact?
The data indicates 'TECHNOLOGY DEVELOPMENT-TD' for Small Arms Ammunition. Specific advancements are not detailed, but the goal would be improved performance, safety, or manufacturing efficiency. The impact is likely enhanced soldier effectiveness and potentially reduced long-term costs through better production methods, though the exact operational benefits require further investigation into the project's outcomes.
How did the 'full and open competition' process ensure the best value for taxpayers, given the long duration?
Full and open competition allows multiple qualified vendors to bid, fostering a competitive environment that typically drives down prices and encourages innovation. For a long-duration contract, the initial competitive award sets a baseline price, and the firm fixed price structure aims to lock in costs, protecting taxpayers from market fluctuations. However, ongoing oversight is crucial to manage potential cost overruns or scope creep.
What are the long-term implications of this contract on the supply chain and potential future competition for small arms ammunition?
This contract likely solidified Alliant Techsystems Operations LLC's position as a key supplier for a significant period. While beneficial for ensuring supply, it could potentially limit future competition if competitors do not have similar opportunities to develop related technologies or scale production. The long-term strategy should consider fostering a broader base of capable suppliers to maintain robust competition.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W15QKN06R0827
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Northrop Grumman Corporation
Address: 4700 NATHAN LN N, PLYMOUTH, MN, 55442
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $131,015,260
Exercised Options: $130,284,787
Current Obligation: $129,459,697
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2006-06-28
Current End Date: 2014-12-30
Potential End Date: 2014-12-30 00:00:00
Last Modified: 2024-09-11
More Contracts from Alliant Techsystems Operations LLC
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- Systems Engineering and Development — $569.0M (Department of Defense)
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