DOJ's $13.5M Ammunition Purchase for U.S. Marshals: Sole Source to Hornady Manufacturing

Contract Overview

Contract Amount: $13,560 ($13.6K)

Contractor: Hornady Manufacturing Company

Awarding Agency: Department of Justice

Start Date: 2026-04-08

End Date: 2026-12-31

Contract Duration: 267 days

Daily Burn Rate: $51/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MISSION CRITICAL: APPREHENDING FUGITIVES D52 NNY 556 AMMUNITION

Place of Performance

Location: GRAND ISLAND, HALL County, NEBRASKA, 68802

State: Nebraska Government Spending

Plain-Language Summary

Department of Justice obligated $13,560 to HORNADY MANUFACTURING COMPANY for work described as: MISSION CRITICAL: APPREHENDING FUGITIVES D52 NNY 556 AMMUNITION Key points: 1. High value contract for critical law enforcement supplies. 2. Sole-source award to Hornady Manufacturing raises competition concerns. 3. Risk of inflated pricing due to lack of competition. 4. Sector: Defense/Law Enforcement supplies.

Value Assessment

Rating: questionable

The contract is a sole-source award, making a direct pricing comparison difficult. Without competitive bids, it's hard to ascertain if the $13.5M is a fair market price for 267 days of ammunition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award to Hornady Manufacturing. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for this essential ammunition.

Public Impact

Ensures U.S. Marshals Service has critical ammunition for fugitive apprehension. Potential for increased costs due to sole-source procurement. Highlights reliance on a single manufacturer for essential supplies.

Waste & Efficiency Indicators

Waste Risk Score: 51 / 10

Warning Flags

Sole-source procurement
Lack of competition
Potential for overpricing

Positive Signals

Mission critical item
Ensures operational readiness

Sector Analysis

This contract falls within the defense and law enforcement supplies sector, specifically small arms ammunition. Benchmarks for similar large-scale ammunition procurements are often subject to competitive bidding, making this sole-source award an outlier.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as both the contractor (Hornady Manufacturing) and the awarding agency (U.S. Marshals Service) are large entities. There is no indication of small business participation in this specific award.

Oversight & Accountability

Oversight is crucial to ensure the necessity and pricing of this sole-source contract. The U.S. Marshals Service should have internal controls to justify the sole-source decision and verify fair pricing.

Related Government Programs

Small Arms Ammunition Manufacturing
Department of Justice Contracting
U.S. Marshals Service Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for price gouging
Limited transparency in pricing
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $13,560 to HORNADY MANUFACTURING COMPANY. MISSION CRITICAL: APPREHENDING FUGITIVES D52 NNY 556 AMMUNITION

Who is the contractor on this award?

The obligated recipient is HORNADY MANUFACTURING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $13,560.

What is the period of performance?

Start: 2026-04-08. End: 2026-12-31.

What is the justification for awarding this ammunition contract as sole-source?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternative sources. For this contract, the Department of Justice and U.S. Marshals Service would need to document why Hornady Manufacturing was the only acceptable source and why competition was not feasible or practical.

What is the risk associated with a sole-source ammunition contract?

The primary risk of a sole-source contract is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may pay a premium. Additionally, it can create a dependency on a single supplier, posing a risk if that supplier faces production issues or price hikes.

How does this contract ensure the effectiveness of the U.S. Marshals Service?

This contract directly supports the effectiveness of the U.S. Marshals Service by ensuring they have a consistent and adequate supply of mission-critical ammunition for apprehending fugitives. Reliable access to ammunition is fundamental for officer safety and operational success in their demanding role.

Industry Classification

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

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15M10226QA4700047

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3625 W OLD POTASH HWY, GRAND ISLAND, NE, 68803

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

Financial Breakdown

Contract Ceiling: $13,560

Exercised Options: $13,560

Current Obligation: $13,560

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline