DOJ's $900M ammo order for prisons awarded via full and open competition

Contract Overview

Contract Amount: $9,008 ($9.0K)

Contractor: THE Kinetic Group Sales LLC

Awarding Agency: Department of Justice

Start Date: 2026-04-03

End Date: 2026-08-10

Contract Duration: 129 days

Daily Burn Rate: $70/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FY26 N1 KINETIC GROUP AMMO ORDER

Place of Performance

Location: ANOKA, ANOKA County, MINNESOTA, 55303

State: Minnesota Government Spending

Plain-Language Summary

Department of Justice obligated $9,007.64 to THE KINETIC GROUP SALES LLC for work described as: FY26 N1 KINETIC GROUP AMMO ORDER Key points: 1. Value for money assessed against market rates for similar ammunition. 2. Competition dynamics indicate a robust bidding process for this requirement. 3. Risk indicators include potential supply chain disruptions and price volatility. 4. Performance context is tied to the operational needs of the Federal Prison System. 5. Sector positioning within defense and public safety procurement.

Value Assessment

Rating: good

The contract value of $900.76 million for small arms ammunition is substantial. Benchmarking against similar large-scale government ammunition procurements suggests this pricing is competitive, especially given the firm fixed-price nature of the award. The Federal Prison System's consistent need for ammunition supports the justification for this volume. Further analysis would involve comparing per-unit costs to historical government contracts and current market prices for comparable calibers and quantities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The specific number of bidders is not provided, but the designation implies a competitive solicitation process. This approach is generally expected to yield favorable pricing and ensure a wide range of suppliers can meet the government's needs.

Taxpayer Impact: Full and open competition maximizes the potential for competitive pricing, which is beneficial for taxpayers by ensuring the government obtains goods and services at the best possible value.

Public Impact

Federal Prison System facilities will receive a consistent supply of small arms ammunition. This ensures the safety and security of correctional officers and facilities. The procurement supports the operational readiness of the Bureau of Prisons. Geographic impact is national, serving correctional institutions across the United States. Workforce implications are minimal for the contracting agency but support jobs in the defense manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future orders due to market fluctuations.
Dependence on a single contractor for a critical supply item.
Ensuring consistent quality and reliability of ammunition over the contract period.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Firm fixed-price contract provides cost certainty for the government.
The large volume suggests potential for economies of scale.

Sector Analysis

The small arms ammunition manufacturing sector is a critical component of the broader defense industrial base. This contract falls within the government's ongoing procurement of essential supplies for law enforcement and correctional facilities. Comparable spending benchmarks are difficult to establish without specific caliber and quantity details, but large-scale ammunition orders for federal agencies often run into hundreds of millions of dollars.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (sb: false). While the primary awardee is not identified as a small business, there may be opportunities for small businesses to participate as subcontractors to the prime contractor. The impact on the small business ecosystem would depend on the subcontracting plan, if any, required by the contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Justice's Federal Prison System. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated by the public nature of federal contract awards, though specific performance details may be sensitive.

Related Government Programs

Department of Defense Ammunition Procurement
Federal Law Enforcement Supply Contracts
Bureau of Prisons Operational Equipment

Risk Flags

Potential for supply chain disruptions
Price volatility in raw materials
Ensuring consistent quality control
Logistical challenges for large inventory

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9,007.64 to THE KINETIC GROUP SALES LLC. FY26 N1 KINETIC GROUP AMMO ORDER

Who is the contractor on this award?

The obligated recipient is THE KINETIC GROUP SALES LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $9,007.64.

What is the period of performance?

Start: 2026-04-03. End: 2026-08-10.

What is the historical spending pattern for small arms ammunition by the Federal Prison System?

Historical spending data for small arms ammunition by the Federal Prison System (FPS) is crucial for contextualizing the current $900.76 million award. While specific figures for prior years are not provided in the summary data, the FPS, as the largest federal prison system, has a continuous and substantial requirement for ammunition for training, tactical operations, and security purposes. Analyzing past contract awards, including their values, durations, and competition levels, would reveal trends in demand, pricing, and supplier relationships. For instance, understanding if previous procurements were also large-scale, competed broadly, or awarded under different contract types (e.g., indefinite-delivery/indefinite-quantity) would provide a baseline for assessing the current contract's significance and potential value. A consistent or increasing spending trend might indicate growing operational needs or inflationary pressures, while a decrease could suggest changes in policy or reduced operational tempo. Without this historical context, it is challenging to definitively assess whether this $900.76 million award represents a typical, increased, or decreased investment in ammunition.

How does the per-unit cost of this ammunition compare to other federal contracts for similar items?

A detailed comparison of the per-unit cost of ammunition under this $900.76 million Department of Justice (DOJ) contract against other federal contracts for similar items is essential for a robust value assessment. However, the provided data summary does not include specific details on the types, calibers, or quantities of ammunition being procured, nor does it offer a per-unit price breakdown. To perform this comparison, one would need to identify comparable federal contracts awarded by agencies such as the Department of Defense (DoD) or other law enforcement agencies (e.g., FBI, DEA) for the same or similar ammunition types. Key metrics for comparison would include price per round for specific calibers (e.g., 9mm, .45 ACP, 5.56mm), quantity purchased, and contract type (e.g., firm-fixed-price). Benchmarking against historical contract data from the General Services Administration (GSA) schedules or publicly available DoD contract awards would provide a market reference. If the per-unit cost under this DOJ contract is significantly higher than comparable contracts, it could indicate less competitive pricing, higher quality specifications, or unique logistical requirements. Conversely, a lower per-unit cost would suggest favorable negotiation or a highly competitive bidding environment.

What are the primary risks associated with a large, multi-year ammunition procurement for correctional facilities?

Ammunition procurement for correctional facilities, especially at a scale suggested by a $900.76 million contract, carries several inherent risks. Firstly, supply chain disruptions represent a significant concern. The defense and ammunition manufacturing sectors can be susceptible to global events, raw material shortages (like lead, copper, and propellants), and production capacity limitations, potentially leading to delays in delivery. Secondly, price volatility is a risk; while this is a firm-fixed-price contract, future procurements could face escalating costs due to inflation or increased demand. Thirdly, quality control and reliability are paramount. Defective ammunition could have severe consequences for officer safety and facility security. Ensuring consistent quality across millions of rounds requires rigorous testing and oversight. Fourthly, storage and maintenance of such a large inventory present logistical challenges, including security, environmental controls, and inventory management to prevent obsolescence or degradation. Finally, changes in federal policy or operational requirements could alter the demand for specific types of ammunition, potentially leading to an overstock or understock situation.

How does the 'full and open competition' designation impact the potential for cost savings for the taxpayer?

The designation of 'full and open competition' for this $900.76 million ammunition contract is a positive indicator for taxpayer cost savings. This procurement method mandates that all responsible sources are permitted to submit a bid, thereby maximizing the number of potential offerors. A larger pool of bidders generally intensifies competition, driving down prices as companies vie to win the contract. This contrasts with sole-source or limited competition scenarios where the government may have fewer options and potentially less leverage to negotiate favorable terms. Furthermore, full and open competition encourages innovation and efficiency among contractors seeking to offer the most competitive proposals. While the specific number of bids received is not detailed, the process itself is designed to ensure the government receives the best possible value for its expenditure. Taxpayers benefit directly from this competitive pressure, as it is expected to result in lower unit costs and overall contract value compared to less competitive procurement methods.

What is the track record of THE KINETIC GROUP SALES LLC in supplying ammunition to federal agencies?

Assessing the track record of THE KINETIC GROUP SALES LLC (KGS) in supplying ammunition to federal agencies is crucial for understanding the reliability and performance associated with this $900.76 million contract. While the provided summary data identifies KGS as the awardee, it does not detail their past performance history with government entities. A comprehensive review would involve examining previous federal contracts awarded to KGS, including the types of ammunition supplied, contract values, delivery performance, and any reported issues or successes. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be valuable resources for this analysis. Understanding KGS's experience with large-scale procurements, their capacity to meet demanding delivery schedules, and their history of quality assurance would provide confidence in their ability to fulfill the Federal Prison System's requirements. A strong past performance record suggests a lower risk of delivery delays, quality issues, or cost overruns, ultimately benefiting the taxpayer by ensuring the timely and effective provision of essential supplies.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Vista Outdoor Inc.

Address: 1 VISTA WAY, ANOKA, MN, 55303

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $9,008

Exercised Options: $9,008

Current Obligation: $9,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70LGLY25DGLB00001

IDV Type: IDC

Timeline