DoD Awards $57.3M Contract for Ammunition Components to KDI Precision Products
Contract Overview
Contract Amount: $57,354,751 ($57.4M)
Contractor: L3harris Fuzing and Ordnance Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2000-09-07
End Date: 2001-04-13
Contract Duration: 218 days
Daily Burn Rate: $263.1K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200012!2100!000876!AE30 !TACOM - PICATINNY !DAAE3000C1089 !A!*!* !20000907!20021216!041603077!041603077!041603077!N!66126!KDI PRECISION PRODUCTS, INC. !3975 MCMANN ROAD !CINCINNATI !OH!45245!15000!061!39!CINCINNATI !HAMILTON !OHIO !0001!+000014108847!N!Y!000053399747!AD13!RDTE/AMMUNITION-ADV TECH DEV !A6 !AMMUNITION !1FVI!MISCELLANEOUS AMMUNITION ITEMS!3483!3!*!*!*!B!A!*!A !U!J!2!002!N!1A!A!Y!A!* !* !N!B!N!A!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: CINCINNATI, CLERMONT County, OHIO, 45245
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $57.4 million to L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC. for work described as: 200012!2100!000876!AE30 !TACOM - PICATINNY !DAAE3000C1089 !A!*!* !20000907!20021216!041603077!041603077!041603077!N!66126!KDI PRECISION PRODUCTS, INC. !3975 MCMANN ROAD !CINCINNATI !OH!45245!15000!061!39!CINCINNATI !HAM… Key points: 1. Contract awarded to KDI Precision Products for miscellaneous ammunition items. 2. Significant portion of the contract value is for Research, Development, Test, and Evaluation (RDTE). 3. Competition method was 'Full and Open Competition After Exclusion of Sources', suggesting a specific reason for excluding other vendors. 4. The contract duration is 218 days, indicating a short-term need for these components. 5. The awardee is a single entity, KDI Precision Products, Inc.
Value Assessment
Rating: fair
The contract value of $57.3M for ammunition components appears to be within a reasonable range for specialized defense procurement. However, without specific unit cost data or comparison to similar recent awards for identical items, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. This method implies that while competition was sought, certain sources were excluded, potentially limiting price discovery and competition compared to a truly open process.
Taxpayer Impact: The $57.3M expenditure represents taxpayer funds allocated to defense procurement. The effectiveness of the competition method in securing the best value for taxpayers is a key consideration.
Public Impact
Ensures supply of critical ammunition components for defense operations. Supports a specific manufacturer, KDI Precision Products, Inc., in Ohio. Funds research and development in advanced ammunition technology. Potential impact on readiness if these components are essential for current or future military needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition due to exclusion of sources.
- Short contract duration may indicate urgent need or limited scope.
- Lack of detailed unit cost data for benchmarking.
Positive Signals
- Award to a single, established supplier.
- Focus on R&D for advanced technology.
- Contract supports domestic manufacturing.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on ammunition and advanced technology development. Spending in this area is critical for national security, with significant investment often directed towards R&D and specialized manufacturing capabilities.
Small Business Impact
The awardee, KDI Precision Products, Inc., is not identified as a small business. The contract does not appear to have specific set-asides for small businesses, indicating a focus on specialized capabilities potentially held by larger firms.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve contract management by TACOM and potentially program management for the specific ammunition technology.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition.
- Potential for higher costs due to restricted vendor pool.
- Supply chain concentration risk.
- Lack of detailed cost breakdown for unit price analysis.
Tags
department-of-defense, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.4 million to L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC.. 200012!2100!000876!AE30 !TACOM - PICATINNY !DAAE3000C1089 !A!*!* !20000907!20021216!041603077!041603077!041603077!N!66126!KDI PRECISION PRODUCTS, INC. !3975 MCMANN ROAD !CINCINNATI !OH!45245!15000!061!39!CINCINNATI !HAMILTON !OHIO !0001!+000014108847!N!Y!000053399747!AD13!RDTE/AMMUNITION-ADV TECH DEV !A6 !AMMUNITION !1FVI!MISCELLANEOUS AMMUNITION ITEMS!3483!3!*!*!*!B!A!*!A !U!J!
Who is the contractor on this award?
The obligated recipient is L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $57.4 million.
What is the period of performance?
Start: 2000-09-07. End: 2001-04-13.
What specific technical requirements or proprietary technologies necessitated the exclusion of other sources in this 'Full and Open Competition After Exclusion of Sources' award?
The exclusion of sources suggests that KDI Precision Products, Inc. may possess unique intellectual property, specialized manufacturing processes, or critical components that are not readily available from other vendors. This could be related to advanced materials, proprietary designs for fuzing or ordnance, or specific testing and qualification protocols required by the Department of the Army for this particular ammunition technology.
How does the $57.3M contract value compare to the overall R&D and procurement budget for advanced ammunition technologies within the Department of Defense?
The $57.3M represents a notable investment in advanced ammunition technology, particularly given the RDTE component. While specific budget allocations fluctuate, this amount is significant enough to suggest a strategic focus on enhancing capabilities in this area. Benchmarking against broader DoD R&D spending for similar defense systems would provide further context on its relative importance and scale within the overall defense acquisition landscape.
What are the long-term implications for defense readiness and technological advancement if competition remains limited for critical ammunition components?
Limited competition for critical ammunition components could lead to higher costs over time due to a lack of price pressure and potentially stifle innovation if alternative solutions are not explored. It also concentrates supply chain risk with fewer providers. While necessary for specialized items, sustained reliance on sole or limited-source contracts warrants careful monitoring to ensure continued technological advancement and cost-effectiveness for national security.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: L-3 Communications Holdings, Inc. (UEI: 008898843)
Address: 3975 MCMANN ROAD, CINCINNATI, OH, 90
Business Categories: Category Business, Small Business
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2000-09-07
Current End Date: 2001-04-13
Potential End Date: 2001-04-13 00:00:00
Last Modified: 2010-05-14
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