DoD awards $32.1M for M240B MG parts to Colt's Manufacturing under full and open competition
Contract Overview
Contract Amount: $32,186,095 ($32.2M)
Contractor: Colt's Manufacturing Company, LLC
Awarding Agency: Department of Defense
Start Date: 2009-09-25
End Date: 2015-09-23
Contract Duration: 2,189 days
Daily Burn Rate: $14.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER 0001, UNDER CONTRACT W56HZV09D0175, FOR THE M240B MG
Place of Performance
Location: WEST HARTFORD, HARTFORD County, CONNECTICUT, 06110
Plain-Language Summary
Department of Defense obligated $32.2 million to COLT'S MANUFACTURING COMPANY, LLC for work described as: DELIVERY ORDER 0001, UNDER CONTRACT W56HZV09D0175, FOR THE M240B MG Key points: 1. Significant award for critical defense hardware. 2. Colt's Manufacturing is a known supplier in this niche. 3. Long performance period suggests sustained demand. 4. Fixed-price contract aims to control costs.
Value Assessment
Rating: good
The award amount of $32.1M over nearly 6 years for M240B MG parts appears reasonable given the specialized nature of the components and the established manufacturer. Benchmarking against similar defense hardware contracts would provide further validation.
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 market prices and ensure the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a price discovery process that drives value.
Public Impact
Ensures continued availability of a key weapon system component for U.S. military operations. Supports a long-standing defense contractor, maintaining domestic manufacturing capabilities. The extended delivery period indicates a consistent need for these parts. Potential for follow-on orders or similar contracts for related defense equipment.
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 manufacturer for critical parts.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract type.
- Established manufacturer with proven track record.
Sector Analysis
This award falls within the Defense sector, specifically related to ordnance manufacturing. Spending in this area is driven by military readiness requirements and modernization efforts. Benchmarks for similar weapon system component contracts are highly variable based on complexity and quantity.
Small Business Impact
The awardee, Colt's Manufacturing Company, LLC, is a large business. There is no indication in the provided data that small businesses were involved as subcontractors or partners in this specific delivery order.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. The firm fixed price structure provides a degree of cost control, but ongoing monitoring is crucial for performance and adherence to specifications.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration.
- Sole-source potential for future needs.
- Dependence on a single manufacturer.
- Potential for supply chain disruptions.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, ct, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.2 million to COLT'S MANUFACTURING COMPANY, LLC. DELIVERY ORDER 0001, UNDER CONTRACT W56HZV09D0175, FOR THE M240B MG
Who is the contractor on this award?
The obligated recipient is COLT'S MANUFACTURING COMPANY, 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 $32.2 million.
What is the period of performance?
Start: 2009-09-25. End: 2015-09-23.
What is the historical pricing trend for M240B MG parts from Colt's Manufacturing?
Analyzing historical pricing data for M240B MG parts from Colt's Manufacturing would reveal if the current award reflects competitive pricing or potential increases over time. Understanding past price adjustments, volume discounts, and the impact of inflation would provide valuable context for assessing the long-term value of this contract and identifying any potential cost overruns.
What are the specific risks associated with a long-term supply of critical weapon components from a single source?
A long-term supply from a single source, even an established one like Colt's, carries risks such as potential supply chain disruptions due to unforeseen events (natural disasters, geopolitical issues), or the contractor prioritizing other business lines. This could impact military readiness. Additionally, it may reduce leverage for future price negotiations if competition is not actively sought.
How effectively does the firm fixed price contract type mitigate cost risks for this specific award?
The firm fixed price (FFP) contract type is designed to shift cost risk to the contractor, providing budget certainty for the government. For this award, it means Colt's Manufacturing is responsible for any cost overruns. However, the effectiveness relies on the initial price being fair and competitive, and the contract terms adequately defining the scope to prevent change orders that could inflate costs.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: European Holding Company, SE
Address: 547 NEW PARK AVE, WEST HARTFORD, CT, 06110
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: $32,186,095
Exercised Options: $32,186,095
Current Obligation: $32,186,095
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV09D0175
IDV Type: IDC
Timeline
Start Date: 2009-09-25
Current End Date: 2015-09-23
Potential End Date: 2015-09-23 00:00:00
Last Modified: 2025-10-23
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