DoD Awards $223M Tank Training Ammunition Contract to Alliant Techsystems, Exercisable Through FY21
Contract Overview
Contract Amount: $222,947,802 ($222.9M)
Contractor: Alliant Techsystems Operations LLC
Awarding Agency: Department of Defense
Start Date: 2017-03-29
End Date: 2024-06-03
Contract Duration: 2,623 days
Daily Burn Rate: $85.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD FISCAL YEAR 2017 120MM TANK TRAINING AMMUNITION REQUIREMENTS. OPTIONS FOR FISCAL YEARS 18-21 REQUIREMENTS AVAILABLE TO BE EXERCISED.
Place of Performance
Location: MINNEAPOLIS, HENNEPIN County, MINNESOTA, 55442
Plain-Language Summary
Department of Defense obligated $222.9 million to ALLIANT TECHSYSTEMS OPERATIONS LLC for work described as: AWARD FISCAL YEAR 2017 120MM TANK TRAINING AMMUNITION REQUIREMENTS. OPTIONS FOR FISCAL YEARS 18-21 REQUIREMENTS AVAILABLE TO BE EXERCISED. Key points: 1. Significant award for training ammunition, supporting Army readiness. 2. Alliant Techsystems, a major defense contractor, secured the deal. 3. Contract includes options, extending potential value and duration. 4. Firm Fixed Price contract aims to control costs.
Value Assessment
Rating: good
The $223 million award is substantial for specialized ammunition. Benchmarking against similar large-scale ammunition contracts would be necessary for a precise value assessment, but the firm fixed price structure suggests an effort to establish clear cost expectations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific source exclusions. This method can impact price discovery by limiting the pool of potential bidders.
Taxpayer Impact: Taxpayer funds are allocated for essential military training equipment. The firm fixed price contract aims to provide cost certainty, but the exclusion of sources warrants scrutiny to ensure optimal value.
Public Impact
Ensures availability of critical training munitions for armored forces. Supports ongoing military readiness and operational preparedness. Potential for long-term supply chain stability for this specific munition. Impacts the defense industrial base, specifically ammunition manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Limited competition due to source exclusion.
- Long contract duration with options could lead to scope creep.
Positive Signals
- Firm Fixed Price contract for cost control.
- Addresses a critical training requirement for the Army.
Sector Analysis
This award falls within the defense sector, specifically focusing on ammunition manufacturing. Spending benchmarks for similar large-scale, specialized ammunition contracts are typically in the hundreds of millions, aligning with this award's value.
Small Business Impact
The awardee, Alliant Techsystems Operations LLC, is a large business. There is no indication of small business participation in this specific contract award, suggesting limited direct impact on small businesses.
Oversight & Accountability
The contract's duration and option periods necessitate ongoing oversight to ensure performance, adherence to specifications, and cost control. The 'exclusion of sources' clause requires careful review to confirm its justification and prevent potential anti-competitive effects.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition due to source exclusion.
- Potential for contractor to overprice due to limited bidders.
- Long contract duration increases risk of unforeseen issues.
- Lack of small business participation.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, mn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $222.9 million to ALLIANT TECHSYSTEMS OPERATIONS LLC. AWARD FISCAL YEAR 2017 120MM TANK TRAINING AMMUNITION REQUIREMENTS. OPTIONS FOR FISCAL YEARS 18-21 REQUIREMENTS AVAILABLE TO BE EXERCISED.
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 $222.9 million.
What is the period of performance?
Start: 2017-03-29. End: 2024-06-03.
What was the justification for excluding specific sources in the competition?
The justification for excluding specific sources requires detailed examination of the contract's documentation. Typically, such exclusions are based on factors like proprietary technology, existing specialized capabilities, or national security concerns. Understanding the rationale is crucial to assess whether the limited competition truly served the government's best interest and secured optimal pricing.
How does the firm fixed price structure mitigate risks associated with potential cost overruns over the contract's extended period?
A firm fixed price (FFP) contract shifts the cost risk to the contractor. For this extended contract, the FFP aims to lock in prices, protecting the government from inflation or unexpected cost increases during performance. However, the contractor may build in higher contingency costs due to the long duration and potential uncertainties, which could impact the initial price.
What is the long-term strategic value of this specific training ammunition to the Army's operational effectiveness?
This training ammunition is critical for maintaining the proficiency of tank crews and ensuring they are prepared for combat scenarios. Its availability directly impacts the effectiveness of armored units by allowing for realistic and frequent training. The contract's multi-year nature suggests a sustained need, underscoring its strategic importance for ongoing readiness.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J16R0064
Offers Received: 2
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $222,947,802
Exercised Options: $222,947,802
Current Obligation: $222,947,802
Subaward Activity
Number of Subawards: 143
Total Subaward Amount: $134,337,585
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-03-29
Current End Date: 2024-06-03
Potential End Date: 2024-06-03 12:06:00
Last Modified: 2025-12-09
More Contracts from Alliant Techsystems Operations LLC
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- Small Caliber Ammunition (5.56MM, 7.62MM, CAL .22, CAL. 30, CAL .45, CAL .50) — $582.2M (Department of Defense)
- Systems Engineering and Development — $569.0M (Department of Defense)
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