DoD awards $233.8M to Alliant Techsystems for tank training ammunition, awarded non-competitively

Contract Overview

Contract Amount: $233,804,645 ($233.8M)

Contractor: Alliant Techsystems Operations LLC

Awarding Agency: Department of Defense

Start Date: 2008-02-21

End Date: 2016-07-31

Contract Duration: 3,083 days

Daily Burn Rate: $75.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 120MM TANK TRAINING AMMUNITION, M865 AND M1002 CARTRIDGES

Place of Performance

Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442

State: Minnesota Government Spending

Plain-Language Summary

Department of Defense obligated $233.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: 120MM TANK TRAINING AMMUNITION, M865 AND M1002 CARTRIDGES Key points: 1. Significant contract value for specialized ammunition. 2. Lack of competition raises concerns about price discovery. 3. Long contract duration (2008-2016) may indicate evolving needs or limited vendor options. 4. Ammunition manufacturing is a critical defense sector.

Value Assessment

Rating: fair

The contract value of $233.8M over its duration is substantial. Without competitive bids, it's difficult to assess if this price represents fair value compared to potential market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This approach can lead to higher prices and reduced innovation as there is no market pressure to offer the best value.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding, potentially funding a less efficient price.

Public Impact

Ensures readiness for armored vehicle training. Supports a key defense industrial base manufacturer. Potential for higher costs impacts overall defense budget allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award
Lack of price transparency
Long contract duration

Positive Signals

Critical defense capability
Established supplier relationship

Sector Analysis

The defense sector relies heavily on specialized manufacturing like ammunition. Spending benchmarks for such niche items are often opaque, especially for non-competed contracts.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. The prime contractor, Alliant Techsystems, is a large entity, suggesting limited direct opportunities for small businesses on this specific award.

Oversight & Accountability

The non-competitive nature of this award warrants scrutiny. Further investigation into the justification for sole-sourcing and the oversight applied to ensure fair pricing would be beneficial.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for inflated pricing
Limited transparency
No small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $233.8 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. 120MM TANK TRAINING AMMUNITION, M865 AND M1002 CARTRIDGES

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 Army).

What is the total obligated amount?

The obligated amount is $233.8 million.

What is the period of performance?

Start: 2008-02-21. End: 2016-07-31.

What was the specific justification for awarding this contract on a sole-source basis, and were alternative sourcing strategies considered?

The justification for a sole-source award typically involves factors like unique capabilities, urgent needs, or lack of viable alternatives. Without access to the contract's justification documentation, it's impossible to determine the specific reasons. Agencies are expected to explore competitive options first, so understanding why competition was deemed impractical is crucial for assessing value and necessity.

How does the unit cost of these training cartridges compare to similar products or historical pricing, given the lack of competition?

Direct comparison is challenging without competitive data. However, a non-competed contract often implies a higher price than a fully competed one. Analyzing the contractor's cost structure, profit margins, and any available historical pricing data for similar items could provide some insight, but the absence of bids limits definitive benchmarking.

What is the long-term strategic impact of relying on a single supplier for critical training ammunition, especially if competition is limited?

Long-term reliance on a sole-source supplier can create strategic vulnerabilities, including potential supply chain disruptions, price escalation, and reduced innovation. It also diminishes the government's leverage in negotiations. Diversifying the supplier base or fostering competition through market research and contract structuring are key to mitigating these risks.

Industry Classification

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

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W52P1J07R0131

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Northrop Grumman Corporation (UEI: 967356127)

Address: 4700 NATHAN LANE NORTH, MINNEAPOLIS, MN, 55442

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $233,804,645

Exercised Options: $233,804,645

Current Obligation: $233,804,645

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline