DOJ's DEA Awards $24.8M for Small Arms Ammunition Manufacturing to The Kinetic Group Sales LLC
Contract Overview
Contract Amount: $24,768 ($24.8K)
Contractor: THE Kinetic Group Sales LLC
Awarding Agency: Department of Justice
Start Date: 2026-04-06
End Date: 2027-03-01
Contract Duration: 329 days
Daily Burn Rate: $75/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AMMO
Place of Performance
Location: ANOKA, ANOKA County, MINNESOTA, 55303
Plain-Language Summary
Department of Justice obligated $24,767.64 to THE KINETIC GROUP SALES LLC for work described as: AMMO Key points: 1. The contract value is $24.8 million, awarded by the Department of Justice's Drug Enforcement Administration. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for Small Arms Ammunition Manufacturing, with a duration of 329 days. 4. The award is a delivery order under a larger contract, indicating phased procurement.
Value Assessment
Rating: good
The contract uses a Firm Fixed Price (FFP) structure, which is standard for ammunition procurement. Benchmarking against similar FFP contracts for ammunition would be necessary for a precise value assessment, but the stated value appears reasonable for the quantity and type of ammunition likely involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is expected to result in a fair price for taxpayers, as it leverages market forces to drive down costs.
Public Impact
Ensures the DEA has necessary ammunition for operations. Supports the domestic manufacturing sector for defense-related goods. Potential impact on availability and price of small arms ammunition in the civilian market, depending on scale.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for price fluctuations in raw materials affecting long-term costs.
- Dependence on a single vendor for a critical supply.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Supports domestic manufacturing.
Sector Analysis
The defense industrial base, specifically ammunition manufacturing, is critical for national security and law enforcement. Spending in this sector can fluctuate based on geopolitical events and domestic demand. Benchmarks for ammunition contracts vary widely based on type, quantity, and specific requirements.
Small Business Impact
While this specific award went to The Kinetic Group Sales LLC, the contract was awarded under full and open competition. This process allows for small businesses to compete if they meet the requirements, though larger contracts often favor established prime contractors. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The award process under full and open competition suggests a degree of oversight. However, ongoing monitoring of contract performance, delivery schedules, and adherence to the firm fixed price will be crucial for accountability and ensuring taxpayer funds are used effectively.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Justice Contracting
- Drug Enforcement Administration Programs
Risk Flags
- Contract duration is relatively short (329 days).
- Awarded under full and open competition.
- Firm Fixed Price contract.
- Potential for price volatility in ammunition market.
- Dependence on a single vendor for critical supply.
Tags
small-arms-ammunition-manufacturing, department-of-justice, mn, delivery-order, under-100k
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $24,767.64 to THE KINETIC GROUP SALES LLC. AMMO
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 (Drug Enforcement Administration).
What is the total obligated amount?
The obligated amount is $24,767.64.
What is the period of performance?
Start: 2026-04-06. End: 2027-03-01.
What specific types and quantities of small arms ammunition are included in this $24.8 million award, and how do these align with the DEA's operational needs?
The provided data does not specify the exact types and quantities of ammunition. To assess value, a detailed breakdown of the ammunition (e.g., caliber, grain, type like training or duty rounds) and their corresponding unit prices would be required. This information is crucial for comparing against market rates and ensuring the DEA is procuring the most suitable and cost-effective ammunition for its diverse operational requirements.
What are the potential risks associated with relying on The Kinetic Group Sales LLC for this significant ammunition supply, particularly concerning delivery timelines and quality control?
Risks include potential supply chain disruptions affecting The Kinetic Group Sales LLC, leading to delivery delays that could impact DEA operations. Quality control issues could also arise, necessitating costly replacements or impacting mission effectiveness. The firm fixed price mitigates cost overruns but does not eliminate risks related to performance and timely delivery, requiring robust government oversight.
How does the firm fixed price structure for this ammunition contract ensure cost-effectiveness and protect taxpayer interests against potential price escalations?
The Firm Fixed Price (FFP) contract locks in the price for the ammunition, shielding the government from potential increases in raw material costs or manufacturing expenses during the contract period. This provides cost certainty and predictability for budgeting. However, it places the risk of cost overruns on the contractor, potentially incentivizing them to maintain high quality and efficient production to ensure profitability.
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,768
Exercised Options: $24,768
Current Obligation: $24,768
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 15F06722D0004285
IDV Type: IDC
Timeline
Start Date: 2026-04-06
Current End Date: 2027-03-01
Potential End Date: 2027-03-01 00:00:00
Last Modified: 2026-04-06
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