Colt Defense Awarded $1.9M for Small Arms Components in 2007

Contract Overview

Contract Amount: $15,026,770 ($15.0M)

Contractor: Colt Defense LLC

Awarding Agency: Department of Defense

Start Date: 2007-11-06

End Date: 2009-12-31

Contract Duration: 786 days

Daily Burn Rate: $19.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BARREL AND FRONT SIGHT; LOWER RECEIVER EXTENSION; HEAVY BARREL ASSEMBLY; RECEIVER CARTRIDGE; RECOIL BUFFER ASSEMBLY

Place of Performance

Location: WEST HARTFORD, HARTFORD County, CONNECTICUT, 06110

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $15.0 million to COLT DEFENSE LLC for work described as: BARREL AND FRONT SIGHT; LOWER RECEIVER EXTENSION; HEAVY BARREL ASSEMBLY; RECEIVER CARTRIDGE; RECOIL BUFFER ASSEMBLY Key points: 1. Spending focused on critical small arms components. 2. Sole-source award to Colt Defense LLC. 3. Contract duration was 786 days. 4. High unit cost for components noted.

Value Assessment

Rating: questionable

The average unit price for the components appears high compared to industry benchmarks for similar parts. Without detailed breakdown, it's difficult to ascertain full value.

Cost Per Unit: $19,118 per unit

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Colt Defense LLC. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition likely resulted in a higher price than could have been achieved through a competitive bidding process.

Public Impact

Procurement of essential firearm parts for military use. Supports the Department of the Army's readiness and operational capabilities. Potential for taxpayer overpayment due to sole-source award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
High unit cost
Lack of competition

Positive Signals

Essential military components
Established manufacturer

Sector Analysis

Spending falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector. Benchmarks for specialized firearm components can vary significantly based on complexity and material.

Small Business Impact

This contract was awarded to Colt Defense LLC, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and value for taxpayer dollars. Further review of the justification for sole-sourcing is recommended.

Related Government Programs

Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award lacks competition
High unit cost raises value concerns
Potential for overpayment
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.0 million to COLT DEFENSE LLC. BARREL AND FRONT SIGHT; LOWER RECEIVER EXTENSION; HEAVY BARREL ASSEMBLY; RECEIVER CARTRIDGE; RECOIL BUFFER ASSEMBLY

Who is the contractor on this award?

The obligated recipient is COLT DEFENSE 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 $15.0 million.

What is the period of performance?

Start: 2007-11-06. End: 2009-12-31.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source can provide the required supplies or services, or in cases of urgent need. Without this information, it's impossible to assess the validity of the procurement approach.

How does the unit cost of $19,118 compare to similar components procured competitively?

The unit cost of $19,118 is exceptionally high for firearm components. A competitive procurement for similar items would likely yield significantly lower prices. This high cost suggests either unique specifications, a lack of market research, or potential overpricing due to the absence of competition.

What is the long-term strategic value of these specific components to the Army?

These components are critical for the maintenance and operation of small arms, directly impacting the Army's combat readiness and effectiveness. Ensuring a reliable supply chain for such essential parts is strategically important, though the cost-effectiveness of this particular award is questionable.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Colt Defense Holding LLC (UEI: 603395794)

Address: 547 NEW PARK AVE, WEST HARTFORD, CT, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $15,026,770

Exercised Options: $15,026,770

Current Obligation: $15,026,770

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DAAE2003D0191

IDV Type: IDC

Timeline