DHS awards $1.13M for 9mm ammunition, with 4 bidders competing for firm-fixed-price delivery order

Contract Overview

Contract Amount: $1,132,964 ($1.1M)

Contractor: THE Kinetic Group Sales LLC

Awarding Agency: Department of Homeland Security

Start Date: 2026-04-07

End Date: 2026-09-30

Contract Duration: 176 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 2558 CASES OF 9MM FRANGIBLE AMMUNITION

Place of Performance

Location: ANOKA, ANOKA County, MINNESOTA, 55303

State: Minnesota Government Spending

Plain-Language Summary

Department of Homeland Security obligated $1.1 million to THE KINETIC GROUP SALES LLC for work described as: 2558 CASES OF 9MM FRANGIBLE AMMUNITION Key points: 1. The contract value represents a moderate investment in essential ammunition for law enforcement and security operations. 2. Competition dynamics indicate a healthy market for small arms ammunition, potentially driving competitive pricing. 3. The firm-fixed-price structure shifts cost risk to the contractor, providing budget certainty. 4. Delivery order under an existing contract suggests a streamlined procurement process for recurring needs. 5. The duration of the order aligns with anticipated operational tempo for ammunition resupply. 6. Geographic sourcing from Minnesota may reflect established manufacturing capabilities in the region.

Value Assessment

Rating: good

The total award of $1,132,963.78 for 2,558 cases of 9mm frangible ammunition appears reasonable given the quantity and type of munition. Benchmarking against similar federal contracts for ammunition of this caliber and specification is necessary for a definitive value assessment. However, the presence of multiple bidders in a full and open competition suggests that pricing was likely scrutinized and competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bidders submitting proposals. The level of competition is adequate, indicating that multiple suppliers were aware of and able to bid on this requirement. This suggests a degree of market responsiveness and potential for price discovery, although a higher number of bidders could have potentially yielded even more aggressive pricing.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by allowing multiple qualified vendors to vie for the contract, fostering a competitive environment that can lead to better pricing and quality.

Public Impact

Law enforcement agencies within the Department of Homeland Security, particularly the Transportation Security Administration, will benefit from a reliable supply of 9mm frangible ammunition. The ammunition procured will support training exercises and operational readiness for personnel responsible for national security and transportation safety. The contract's fulfillment from Minnesota indicates potential support for regional manufacturing and employment within the defense industrial base. This procurement directly impacts the operational capabilities of federal law enforcement officers by ensuring they have necessary equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in future contract renewals if competition decreases.
Dependence on a single manufacturer's production capacity could pose a supply chain risk.
Ensuring the frangible nature of the ammunition meets all specific training and safety requirements across diverse operational environments.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm-fixed-price contract provides cost certainty for the government.
Delivery order structure suggests efficient procurement for an established need.
Contractor has a track record of supplying similar goods, implying reliability.
The specified ammunition type (frangible) is often chosen for safety in training environments.

Sector Analysis

The small arms ammunition manufacturing sector is a critical component of the defense industrial base, supporting both military and law enforcement agencies. This contract falls within the broader defense procurement landscape, where consistent demand for ammunition is driven by training requirements and operational readiness. The market is characterized by specialized manufacturers, and government contracts often represent significant portions of their business. Comparable spending benchmarks would involve analyzing historical awards for similar quantities and types of ammunition from agencies like the Department of Defense and other federal law enforcement entities.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. The prime contractor, THE KINETIC GROUP SALES LLC, is not explicitly identified as a small business in the provided data. There is no information regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral to potentially limited, unless the prime contractor engages in subcontracting with small businesses.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Homeland Security, specifically the Transportation Security Administration, which issued the delivery order. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with data publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Law Enforcement Training Ammunition
Department of Homeland Security Ammunition Procurement
Transportation Security Administration Equipment Contracts
Small Arms Ammunition Manufacturing
Defense Industrial Base Support Contracts

Risk Flags

Potential supply chain vulnerability
Timeliness of delivery risk
Quality control assurance for specialized ammunition

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $1.1 million to THE KINETIC GROUP SALES LLC. 2558 CASES OF 9MM FRANGIBLE AMMUNITION

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $1.1 million.

What is the period of performance?

Start: 2026-04-07. End: 2026-09-30.

What is the historical spending pattern for 9mm frangible ammunition by the Department of Homeland Security?

Analyzing historical spending patterns for 9mm frangible ammunition by the Department of Homeland Security (DHS) requires accessing federal procurement databases like FPDS or USASpending.gov. Based on the provided data, this specific award is for $1,132,963.78. To establish a pattern, one would need to query these databases for all contracts awarded by DHS agencies (including TSA) for '9mm frangible ammunition' over the past 5-10 fiscal years. This would involve identifying the total dollar value of such contracts annually, the number of awards, and the primary contractors. Trends might reveal increasing or decreasing demand, shifts in preferred ammunition types (e.g., frangible vs. standard ball), and the stability of pricing over time. For instance, a consistent annual spend suggests stable operational needs, while significant fluctuations could indicate changes in training cycles, policy shifts, or budget adjustments. Understanding this history provides context for the current award's significance and potential future requirements.

How does the per-unit cost of this ammunition compare to market rates or similar federal contracts?

Determining the precise per-unit cost requires dividing the total award amount ($1,132,963.78) by the number of cases (2,558). This yields approximately $441.15 per case. To benchmark this against market rates, one would need to research current wholesale prices for 9mm frangible ammunition from various manufacturers and distributors. Comparing this to similar federal contracts involves searching procurement databases for awards of the same or comparable ammunition types (e.g., 9mm, frangible, specific grain weights) issued around the same time by agencies like the Department of Defense or FBI. Factors such as quantity, delivery location, and specific technical requirements can influence price. If this $441.15 per case is significantly higher or lower than comparable contracts or market prices, it could indicate either exceptional value or potential overpricing, warranting further investigation into the specific contract terms and supplier.

What is the track record of THE KINETIC GROUP SALES LLC in fulfilling federal contracts, particularly for ammunition?

Assessing the track record of THE KINETIC GROUP SALES LLC requires a thorough review of their past performance on federal contracts. This involves searching databases like the Federal Procurement Data System (FPDS) or SAM.gov for their contract history. Key metrics to examine include the number of contracts awarded, their total value, the agencies they've served, and the types of goods or services provided. Specific attention should be paid to contracts for ammunition or related defense articles. Performance evaluations (past performance information) submitted by contracting officers are crucial; these often rate contractors on factors like quality, timeliness, and cost control. A history of successful, on-time deliveries and positive performance reviews would indicate reliability, while a pattern of defaults, disputes, or negative evaluations would raise concerns about their capacity to fulfill this current $1.13 million award effectively.

What are the potential risks associated with the duration and delivery schedule of this contract?

The contract has a duration of 176 days, with a delivery period from April 7, 2026, to September 30, 2026. Potential risks associated with this schedule include supply chain disruptions, manufacturing delays, or transportation issues that could impact the timely delivery of the ammunition. Given that ammunition is a critical consumable for law enforcement training and operations, any delay could affect the operational readiness of the Transportation Security Administration (TSA) personnel. The firm-fixed-price nature means the government is protected from cost overruns if delays are contractor-caused, but operational impact remains a risk. Furthermore, the relatively short delivery window might put pressure on the contractor, potentially increasing the risk of rushed production leading to quality control issues if not managed properly.

How does the choice of 'frangible' ammunition impact its use and cost compared to standard ammunition?

Frangible ammunition is designed to break apart upon impact with hard surfaces, significantly reducing the risk of ricochets and collateral damage. This makes it ideal for indoor training ranges and situations where safety is paramount, minimizing the danger to shooters and bystanders. Consequently, frangible ammunition typically carries a higher cost per round compared to standard full metal jacket (FMJ) or jacketed hollow point (JHP) ammunition. This premium price reflects the specialized manufacturing processes and materials required to achieve the desired fragmentation characteristics. For the TSA, the selection of frangible ammunition suggests a prioritization of safety in training environments, even at a higher unit cost. The $1.13 million award reflects the total cost for these specialized rounds, and the value proposition hinges on the enhanced safety benefits outweighing the increased expenditure.

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: 4

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: $1,132,964

Exercised Options: $1,132,964

Current Obligation: $1,132,964

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70LGLY21DGLB00001

IDV Type: IDC

Timeline