DoD Procures 37,415 M4 Rifles for $45.2M, Primarily from Colt Defense LLC
Contract Overview
Contract Amount: $45,215,790 ($45.2M)
Contractor: Colt Defense LLC
Awarding Agency: Department of Defense
Start Date: 2008-11-12
End Date: 2010-09-30
Contract Duration: 687 days
Daily Burn Rate: $65.8K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USMC OVERALL QUANTITY OF 8,125 M4S ALONG WITH US ARMY FY09 PROCUREMENT OF 20,290 M4S. TOTAL HARDWARE COUNT EQUALS 37,415 WEAPONS.
Place of Performance
Location: WEST HARTFORD, HARTFORD County, CONNECTICUT, 06110
Plain-Language Summary
Department of Defense obligated $45.2 million to COLT DEFENSE LLC for work described as: USMC OVERALL QUANTITY OF 8,125 M4S ALONG WITH US ARMY FY09 PROCUREMENT OF 20,290 M4S. TOTAL HARDWARE COUNT EQUALS 37,415 WEAPONS. Key points: 1. Significant procurement of M4 rifles for USMC and Army totaling 37,415 units. 2. Colt Defense LLC is the sole known manufacturer, raising competition concerns. 3. The contract value is substantial at $45.2 million. 4. The procurement falls under the 'Aluminum Sheet, Plate, and Foil Manufacturing' NAICS code, which seems unusual for firearms.
Value Assessment
Rating: questionable
The total contract value of $45.2 million for 37,415 M4 rifles results in a per-unit cost of approximately $1,208. This price needs to be benchmarked against similar firearms contracts and market prices for M4 variants to assess value.
Cost Per Unit: $1,208
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED,' indicating a sole-source award to Colt Defense LLC. This lack of competition limits price discovery and potentially leads to higher costs for taxpayers.
Taxpayer Impact: The absence of competition in this significant procurement may result in taxpayers paying a premium for these firearms.
Public Impact
Ensures readiness for USMC and Army personnel by providing essential service weapons. Supports a key defense contractor, Colt Defense LLC, and its manufacturing capabilities. Potential for higher costs due to sole-source award impacts overall defense budget allocation. The unusual NAICS code classification warrants further investigation into the procurement process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price negotiation.
- Unusual NAICS code classification for firearms procurement.
- Lack of transparency in the procurement process.
Positive Signals
- Meets critical equipment needs for military branches.
- Supports domestic defense manufacturing.
Sector Analysis
This procurement falls under the defense sector, specifically small arms. The unusual NAICS code 'Aluminum Sheet, Plate, and Foil Manufacturing' is a significant anomaly and requires clarification. Typical benchmarks for firearm procurement would focus on defense manufacturing contracts.
Small Business Impact
There is no indication that small businesses were involved in this procurement, as it was a sole-source award to a large manufacturer. Further analysis would be needed to determine if subcontracting opportunities were pursued.
Oversight & Accountability
The 'NOT COMPETED' status suggests a lack of robust oversight in the initial award phase. Further review of the justification for the sole-source award and any subsequent performance monitoring is recommended.
Related Government Programs
- Aluminum Sheet, Plate, and Foil Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Unusual NAICS code classification.
- Potential for inflated pricing due to lack of competition.
- Lack of transparency in the procurement justification.
Tags
aluminum-sheet-plate-and-foil-manufactur, department-of-defense, ct, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.2 million to COLT DEFENSE LLC. USMC OVERALL QUANTITY OF 8,125 M4S ALONG WITH US ARMY FY09 PROCUREMENT OF 20,290 M4S. TOTAL HARDWARE COUNT EQUALS 37,415 WEAPONS.
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 $45.2 million.
What is the period of performance?
Start: 2008-11-12. End: 2010-09-30.
What is the justification for the sole-source award of this M4 rifle contract to Colt Defense LLC, and why was it not competed?
The provided data states the contract was 'NOT COMPETED.' A sole-source award typically requires a strong justification, such as unique capabilities, urgent need, or lack of viable alternatives. Without further documentation, the specific reasons remain unclear, raising questions about the procurement process and potential missed opportunities for better pricing through competition.
How does the per-unit cost of $1,208 for the M4 rifles compare to market benchmarks and previous procurements?
The per-unit cost of $1,208 is a critical data point for value assessment. This figure needs to be rigorously compared against historical M4 rifle procurements by the DoD, as well as current market prices for similar firearms from various manufacturers. A higher-than-average cost could indicate a lack of competitive pressure or other inefficiencies in the acquisition.
What is the significance of the NAICS code 'Aluminum Sheet, Plate, and Foil Manufacturing' being associated with this firearms contract?
The assignment of NAICS code 331315 ('Aluminum Sheet, Plate, and Foil Manufacturing') to a firearms procurement is highly unusual and suggests a potential misclassification or a misunderstanding of the primary product being acquired. This discrepancy warrants investigation to ensure accurate reporting and to understand if it reflects a specific component sourcing strategy or an administrative error.
Industry Classification
NAICS: Manufacturing › Alumina and Aluminum Production and Processing › Aluminum Sheet, Plate, and Foil Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $45,215,790
Exercised Options: $45,215,790
Current Obligation: $45,215,790
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52H0907D0425
IDV Type: IDC
Timeline
Start Date: 2008-11-12
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2011-02-08
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