DHS awards $12.1M for 9mm ammunition, highlighting a significant need for law enforcement supplies

Contract Overview

Contract Amount: $12,096,467 ($12.1M)

Contractor: THE Kinetic Group Sales LLC

Awarding Agency: Department of Homeland Security

Start Date: 2025-09-15

End Date: 2026-10-31

Contract Duration: 411 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BULK 9MM AMMUNITION ORDER

Place of Performance

Location: ANOKA, ANOKA County, MINNESOTA, 55303

State: Minnesota Government Spending

Plain-Language Summary

Department of Homeland Security obligated $12.1 million to THE KINETIC GROUP SALES LLC for work described as: BULK 9MM AMMUNITION ORDER Key points: 1. The contract value represents a substantial investment in essential law enforcement equipment. 2. Full and open competition suggests a potentially competitive bidding process for this order. 3. The fixed-price contract type aims to provide cost certainty for the government. 4. The duration of the contract indicates a sustained need for ammunition supply. 5. This award falls within the manufacturing sector for small arms ammunition. 6. The delivery order mechanism suggests this is part of a larger procurement framework.

Value Assessment

Rating: good

The contract value of $12.1 million for bulk 9mm ammunition appears reasonable given the quantity and market for such goods. Benchmarking against similar large-scale ammunition procurements by federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost escalation risks for the government, ensuring predictable expenditure for this essential supply.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and quality for the government. The specific number of bidders is not provided, but the method of competition suggests a robust market response.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the potential for receiving competitive pricing and encourages a wider range of suppliers to participate, potentially driving down costs.

Public Impact

This contract directly benefits U.S. Customs and Border Protection (CBP) by ensuring a consistent supply of 9mm ammunition. The ammunition will be used by law enforcement personnel in their official duties. The primary geographic impact is within the operational areas of CBP, which are extensive across U.S. borders. The contract supports jobs within the small arms ammunition manufacturing industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials impacting long-term cost-effectiveness.
Ensuring consistent quality control across a large bulk order is critical.
Logistical challenges in timely delivery and storage of a large ammunition quantity.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm fixed-price contract provides cost certainty.
The Kinetic Group Sales LLC is a known supplier in this market.
The duration of the contract supports sustained operational readiness.

Sector Analysis

The small arms ammunition manufacturing sector is a critical component of the defense and law enforcement supply chain. Federal agencies, particularly those involved in security and border protection, represent significant customers. The market is characterized by specialized manufacturers capable of producing ammunition to stringent government specifications. Spending in this category is often driven by operational tempo and readiness requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to The Kinetic Group Sales LLC, a specific entity, does not inherently signal direct benefits or opportunities for the small business ecosystem in this particular transaction. Further analysis would be needed to determine if the prime contractor utilizes small business subcontractors.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The firm fixed-price nature provides a degree of financial oversight by locking in costs. Transparency is maintained through contract award databases. The Inspector General's office for the Department of Homeland Security would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Law Enforcement Ammunition Procurement
Department of Homeland Security Supply Chain Management
Small Arms Ammunition Manufacturing Contracts
Customs and Border Protection Equipment Acquisition

Risk Flags

Potential for supply chain disruptions
Quality control of bulk ammunition
Logistical challenges for large quantities

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $12.1 million to THE KINETIC GROUP SALES LLC. BULK 9MM AMMUNITION 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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $12.1 million.

What is the period of performance?

Start: 2025-09-15. End: 2026-10-31.

What is the historical spending pattern for 9mm ammunition by U.S. Customs and Border Protection?

Analyzing historical spending patterns for 9mm ammunition by U.S. Customs and Border Protection (CBP) is crucial for understanding procurement trends and value. While specific historical data for CBP's 9mm ammunition purchases is not detailed here, federal agencies typically procure such supplies through a combination of indefinite-delivery indefinite-quantity (IDIQ) contracts, delivery orders against existing contracts, and sole-source awards when necessary. Spending levels can fluctuate based on operational needs, changes in force size, training requirements, and inventory management strategies. A review of past contract awards, including quantities, prices, and contract types, would reveal whether this $12.1 million award represents an increase, decrease, or continuation of previous spending levels. Factors such as market price volatility for raw materials (like propellants and primers) and the number of competitive bids received in prior solicitations also influence historical spending. Understanding these patterns helps in assessing the current award's reasonableness and identifying potential long-term cost efficiencies or risks.

How does the price per round for this contract compare to market rates or other federal contracts?

Determining the precise price per round requires dividing the total contract value ($12,096,466.80) by the total number of rounds procured. However, the total quantity of ammunition is not specified in the provided data. Without the quantity, a direct per-round cost comparison is impossible. Generally, large bulk orders procured through full and open competition are expected to yield competitive per-round pricing. Factors influencing this price include the specific ammunition specifications (e.g., ball, hollow-point), manufacturer, origin, and prevailing market conditions for raw materials. Comparing this contract's per-round cost to other federal contracts for similar 9mm ammunition, especially those awarded by agencies like the FBI or Department of Defense, would be the most effective benchmarking method. Additionally, comparing it to commercial bulk pricing for law enforcement agencies can provide further context on value for money.

What are the specific performance requirements and quality control measures for this ammunition?

The provided data indicates the contract is for 'BULK 9MM AMMUNITION ORDER' under NAICS code 332992 (Small Arms Ammunition Manufacturing) and a firm fixed-price contract. While specific performance requirements and quality control measures are not detailed in this summary, federal ammunition contracts typically include stringent specifications. These often cover aspects such as bullet type (e.g., full metal jacket), weight, velocity, accuracy standards, primer type (e.g., non-corrosive, lead-free), case material, and packaging. Quality control measures mandated by the government usually involve factory inspections, lot testing, and certification processes to ensure the ammunition meets all specified performance criteria and is safe for use. The U.S. Customs and Border Protection (CBP) would have detailed technical specifications within the contract documents outlining these requirements to ensure reliability and effectiveness for their agents.

What is the track record of The Kinetic Group Sales LLC in fulfilling federal ammunition contracts?

The Kinetic Group Sales LLC is identified as the contractor for this $12.1 million bulk 9mm ammunition order. To assess their track record, one would need to examine their past performance on similar federal contracts. This includes reviewing contract databases (like FPDS or SAM.gov) for previous awards, delivery performance, and any reported issues such as late deliveries, quality problems, or contract disputes. Information on their experience with large-volume ammunition procurements, their manufacturing capabilities, and their history with agencies like the Department of Homeland Security or its components (like CBP) would be pertinent. A positive track record with successful past performance on comparable contracts would indicate a lower risk for this current award, suggesting reliability in meeting the government's needs for ammunition.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks associated with this bulk ammunition contract include supply chain disruptions affecting raw material availability or delivery timelines, quality control issues leading to defective ammunition, and potential price volatility if the contract duration is long and market prices fluctuate significantly (though mitigated by fixed-price). Furthermore, logistical challenges in storing and distributing a large quantity of ammunition could pose risks. Mitigation strategies typically involve robust contract management by the agency, including clear performance standards, regular communication with the contractor, and potentially pre-qualification of suppliers based on their manufacturing capacity and quality assurance processes. The firm fixed-price structure inherently mitigates financial risk for the government regarding price increases. The use of full and open competition also helps ensure a competitive landscape, potentially reducing risks associated with a single supplier's performance.

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: NEGOTIATED PROPOSAL/QUOTE

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: $12,096,467

Exercised Options: $12,096,467

Current Obligation: $12,096,467

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70B06C20D00000009

IDV Type: IDC

Timeline