Army awards $59.4M contract for 30-75mm ammunition to American Ordnance LLC
Contract Overview
Contract Amount: $59,441,844 ($59.4M)
Contractor: American Ordnance LLC
Awarding Agency: Department of Defense
Start Date: 2004-06-30
End Date: 2011-03-24
Contract Duration: 2,458 days
Daily Burn Rate: $24.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200409!001498!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0998G0011 !A!N! !N!0080 ! !20040630!20061231!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48680!017!47!MILAN ARMY AMMUNITIO!CARROLL !TENNESSEE !+000044573423!N!N!000000000000!1310!AMMUNITION, OVER 30 MM UP TO 75 MM !A6 !AMMUNITION !000 !* !325920!E! !4! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!N!F! ! !N!C!N! ! ! !Z!A!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: MILAN, GIBSON County, TENNESSEE, 38358
Plain-Language Summary
Department of Defense obligated $59.4 million to AMERICAN ORDNANCE LLC for work described as: 200409!001498!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0998G0011 !A!N! !N!0080 ! !20040630!20061231!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48680!017!47!MILAN ARMY AMMUNITIO!CARR… Key points: 1. The contract value is $59.4 million, awarded for ammunition. 2. American Ordnance LLC is the sole contractor, indicating a limited competition. 3. The contract duration is 2458 days, suggesting a long-term supply need. 4. The sector is Defense, specifically ammunition procurement for the Army.
Value Assessment
Rating: fair
The contract value of $59.4 million for ammunition appears to be within a reasonable range for large-scale procurement, but without specific unit cost data or comparison to similar contracts, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, meaning American Ordnance LLC was the only source considered. This lack of competition may limit price discovery and potentially lead to higher costs for the government.
Taxpayer Impact: The absence of competition could result in taxpayers paying more than necessary for this ammunition.
Public Impact
Ensures a supply of critical ammunition for U.S. Army operations. Supports a specific defense contractor, potentially impacting local economies where the contractor operates. Lack of competition raises concerns about long-term cost-effectiveness for taxpayers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration without clear performance metrics
Positive Signals
- Ensures supply of essential defense material
- Potential for established relationship with contractor
Sector Analysis
This contract falls within the Defense sector, specifically for the procurement of ammunition. Spending benchmarks for ammunition contracts can vary widely based on type, quantity, and geopolitical factors, but large sole-source awards warrant scrutiny.
Small Business Impact
There is no indication in the provided data that small businesses were involved in this contract, either as prime contractors or subcontractors. The award appears to be to a large, established entity.
Oversight & Accountability
The sole-source nature of this award suggests limited oversight on price negotiation. Further review of the justification for not competing the contract and the pricing structure would be beneficial for accountability.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competitive pricing.
- Potential for inflated costs due to no competition.
- Long contract duration without clear performance metrics.
- Limited transparency on the justification for sole-sourcing.
Tags
department-of-defense, tn, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.4 million to AMERICAN ORDNANCE LLC. 200409!001498!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0998G0011 !A!N! !N!0080 ! !20040630!20061231!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48680!017!47!MILAN ARMY AMMUNITIO!CARROLL !TENNESSEE !+000044573423!N!N!000000000000!1310!AMMUNITION, OVER 30 MM UP TO 75 MM !A6 !AMMUNITION !000 !* !325920!E! !4! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is AMERICAN ORDNANCE 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 $59.4 million.
What is the period of performance?
Start: 2004-06-30. End: 2011-03-24.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The provided data indicates the contract was 'NOT COMPETED'. A detailed justification would typically be required by federal acquisition regulations, outlining reasons such as a lack of available sources, urgent and compelling needs, or specific national security requirements that only one contractor could meet. Without this justification, it's difficult to assess if the sole-source award was appropriate.
How does the per-unit cost of this ammunition compare to similar contracts or market prices?
The data does not provide a per-unit cost, only the total contract value and duration. To assess value for money, a detailed cost analysis comparing this contract's unit prices to historical data, other government contracts for similar ammunition, or commercial market prices would be necessary. The lack of competition makes this comparison even more critical.
What are the performance metrics and delivery schedules associated with this long-term ammunition contract?
The data specifies a contract duration of 2458 days (approximately 6.7 years) but does not detail specific performance metrics or delivery schedules. For a contract of this length and value, clear, measurable performance standards and phased delivery plans are crucial for ensuring the government receives the required quality and quantity of ammunition on time.
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
Address: 17575 HIGHWAY 79, MIDDLETOWN, IA, 01
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-06-30
Current End Date: 2011-03-24
Potential End Date: 2011-03-24 00:00:00
Last Modified: 2014-07-08
More Contracts from American Ordnance LLC
- M795 TNT - Award of FY16 Requirements — $269.7M (Department of Defense)
- M795 TNT 155MM HE Projectiles - FY20 Requirements Awarded — $229.3M (Department of Defense)
- Ukraine: Multi-Year, UCA Delivery Order for M1128 LAP Projectiles — $192.6M (Department of Defense)
- Order W519tc25f0357 IS for the Contractor to Load, Assemble, and Pack a Quantity of 388,436 155MM M795 TNT Loaded Projectiles — $188.1M (Department of Defense)
- Order W519tc24f0399 IS for the Contractor to Load, Assemble, and Pack a Quantity of 346,478 155MM M795 TNT Loaded Projectiles — $151.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)