Department of the Army awards $15.7M for M4/M4A1 Carbines to Colt Defense LLC
Contract Overview
Contract Amount: $15,757,402 ($15.8M)
Contractor: Colt Defense LLC
Awarding Agency: Department of Defense
Start Date: 2010-03-16
End Date: 2011-11-30
Contract Duration: 624 days
Daily Burn Rate: $25.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M4 CARBINE, NSN 1005-01-231-0973 M4A1 CARBINE, NSN 1005-01-382-0953
Place of Performance
Location: WEST HARTFORD, HARTFORD County, CONNECTICUT, 06110
Plain-Language Summary
Department of Defense obligated $15.8 million to COLT DEFENSE LLC for work described as: M4 CARBINE, NSN 1005-01-231-0973 M4A1 CARBINE, NSN 1005-01-382-0953 Key points: 1. Colt Defense LLC, a sole-source provider, secured a $15.7M contract for M4/M4A1 carbines. 2. The contract was not competed, raising questions about price discovery and potential overpayment. 3. The award falls under the 'Aluminum Sheet, Plate, and Foil Manufacturing' NAICS code, which seems misaligned with firearms production. 4. This spending is within the Defense sector, specifically for the Department of the Army.
Value Assessment
Rating: questionable
Without competitive bidding, it's difficult to assess if the $15.7M price represents fair market value. The lack of competition prevents benchmarking against other potential suppliers or market rates for similar firearms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, meaning only one vendor was solicited. This significantly limits price discovery and potentially leads to higher costs for taxpayers as there was no opportunity for market forces to drive down the price.
Taxpayer Impact: The lack of competition in this sole-source award may result in taxpayers paying more than necessary for these carbines.
Public Impact
Military readiness may be impacted if essential equipment is procured at inflated prices. Taxpayer funds are allocated to a single defense contractor without competitive pressure. The procurement process raises concerns about the efficiency and cost-effectiveness of defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potentially misaligned NAICS code
Positive Signals
- Award to a known defense contractor
- Contract supports military readiness
Sector Analysis
This contract falls within the Defense sector. Defense spending benchmarks for firearms can vary widely based on quantity, specifications, and manufacturer. Without competitive data, it's hard to place this specific award within typical spending ranges.
Small Business Impact
The data indicates 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 further oversight to ensure the price paid is reasonable and that future procurements explore competitive options where feasible.
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.
- Potential for overpayment due to lack of price discovery.
- Misaligned NAICS code raises questions about procurement accuracy.
- No indication of small business participation.
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 $15.8 million to COLT DEFENSE LLC. M4 CARBINE, NSN 1005-01-231-0973 M4A1 CARBINE, NSN 1005-01-382-0953
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 $15.8 million.
What is the period of performance?
Start: 2010-03-16. End: 2011-11-30.
What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure the price was fair and reasonable?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. Without further documentation, it's unclear why competition was bypassed. Steps to ensure price reasonableness might include historical price analysis or independent cost estimates, but these are not evident from the provided data.
How does the unit cost of these M4/M4A1 carbines compare to similar procurements by other government agencies or allied nations?
Benchmarking the unit cost is challenging without competitive data for this specific award. If the contract was sole-source, direct comparison to other competitive bids is impossible. Analysis would require access to historical pricing data for Colt's carbines or similar models from other manufacturers obtained through competitive processes.
What is the long-term strategy for procuring these essential firearms, and will future solicitations incorporate competitive bidding to ensure cost savings?
The long-term strategy is not detailed in the provided data. However, for effective use of taxpayer funds and to ensure competitive pricing, future procurements should ideally move towards a competed process. Agencies should explore options for market research and solicitations that encourage multiple bids to achieve better value.
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: $15,757,402
Exercised Options: $15,757,402
Current Obligation: $15,757,402
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52H0907D0425
IDV Type: IDC
Timeline
Start Date: 2010-03-16
Current End Date: 2011-11-30
Potential End Date: 2011-11-30 00:00:00
Last Modified: 2011-02-08
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