Defense awards $38.7M contract to Textron Systems for small arms ammunition manufacturing
Contract Overview
Contract Amount: $38,670,373 ($38.7M)
Contractor: Textron Systems Corp
Awarding Agency: Department of Defense
Start Date: 2003-04-10
End Date: 2006-07-31
Contract Duration: 1,208 days
Daily Burn Rate: $32.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: 200307!000573!2100!AE30 !TACOM - PICATINNY !DAAE3003C1094 !A!N! !N! !20030410!20051210!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDLESEX !MASS !+000004000000!N!N!000000000000!AC15!RDTE/AIRCRAFT-ENG/MANUF DEVELOP !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332992!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!V!2!003!A! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!D!N! ! ! ! ! ! !0001! !
Place of Performance
Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887
Plain-Language Summary
Department of Defense obligated $38.7 million to TEXTRON SYSTEMS CORP for work described as: 200307!000573!2100!AE30 !TACOM - PICATINNY !DAAE3003C1094 !A!N! !N! !20030410!20051210!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDL… Key points: 1. Contract awarded to Textron Systems Corp for small arms ammunition. 2. The contract value is $38,670,373.43. 3. Competition was full and open, indicating a competitive bidding process. 4. The sector is Defense, specifically related to aircraft engine/manuf development and ammunition.
Value Assessment
Rating: fair
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed carefully. The total value is substantial for ammunition manufacturing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific pricing details and justification for the final award amount are not detailed.
Taxpayer Impact: Taxpayers are funding the procurement of essential ammunition, with the expectation of competitive pricing ensuring value for money.
Public Impact
Ensures supply of critical small arms ammunition for defense needs. Supports a major defense contractor, Textron Systems Corp. Potential for technological advancements in ammunition manufacturing through R&D funding.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contract type can incentivize higher costs.
- Contract duration is over 3 years, requiring sustained oversight.
Positive Signals
- Full and open competition suggests potential for competitive pricing.
- Contract supports critical defense capabilities.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on ammunition manufacturing. Spending benchmarks in this area are highly dependent on the specific type and quantity of ammunition required, as well as technological advancements.
Small Business Impact
The data does not indicate any specific subcontracting or participation by small businesses in this contract. The primary awardee is a large corporation.
Oversight & Accountability
The contract was awarded by the Department of Defense, with oversight likely from the Defense Contract Management Agency. The use of a Cost Plus Incentive Fee contract requires diligent oversight to manage costs effectively.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Lack of specific details on ammunition type and quantity hinders value assessment.
- Limited insight into R&D objectives and expected technological advancements.
- No explicit mention of small business participation.
Tags
small-arms-ammunition-manufacturing, department-of-defense, ma, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.7 million to TEXTRON SYSTEMS CORP. 200307!000573!2100!AE30 !TACOM - PICATINNY !DAAE3003C1094 !A!N! !N! !20030410!20051210!001863943!001863943!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDLESEX !MASS !+000004000000!N!N!000000000000!AC15!RDTE/AIRCRAFT-ENG/MANUF DEVELOP !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332992!E! !3! ! ! ! ! !99990909!B
Who is the contractor on this award?
The obligated recipient is TEXTRON SYSTEMS CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $38.7 million.
What is the period of performance?
Start: 2003-04-10. End: 2006-07-31.
What is the specific type and quantity of small arms ammunition being procured, and how does this impact the per-unit cost benchmark?
The specific type and quantity of ammunition are not detailed in the provided data. This information is crucial for establishing a meaningful per-unit cost benchmark. Without it, comparisons to industry standards or historical data are speculative, making it difficult to assess the true value for money achieved in this $38.7 million award.
What are the key performance metrics and incentive structures within the Cost Plus Incentive Fee (CPIF) agreement, and how are they designed to mitigate cost risks?
The provided data indicates a CPIF contract type but does not detail the specific performance metrics or incentive structures. Effective CPIF contracts include clear targets for cost, schedule, and performance, with defined reward and penalty mechanisms. Robust oversight is essential to ensure Textron Systems is incentivized to control costs while meeting stringent defense requirements.
How does the R&D component of this contract contribute to advancements in ammunition technology, and what is the expected return on investment for this research?
The contract includes a Research, Development, Test, and Evaluation (RDTE) component, suggesting an aim to advance ammunition technology. However, the specific R&D objectives and expected outcomes are not elaborated. Assessing the return on investment requires understanding the planned technological leaps, their potential impact on defense capabilities, and the associated costs versus anticipated benefits.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Contractor Details
Address: 201 LOWELL STREET, WILMINGTON, MA, 01887
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2003-04-10
Current End Date: 2006-07-31
Potential End Date: 2006-07-31 00:00:00
Last Modified: 2024-02-23
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