Defense awards $246M for ammunition, with Textron Systems Corp. as sole source

Contract Overview

Contract Amount: $246,292,354 ($246.3M)

Contractor: Textron Systems Corp

Awarding Agency: Department of Defense

Start Date: 2001-01-05

End Date: 2006-03-31

Contract Duration: 1,911 days

Daily Burn Rate: $128.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200104!000007!5700!GM11 !AAC/YHK !F0863501C0005 !A!N!*!N! !20010105!20011231!001863943!361350473!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDLESEX !MASS !+000007721114!N!N!000000000000!1095!MISCELLANEOUS WEAPONS !A6 !AMMUNITION !3000!NOT DISCERNABLE OR CLASSIFIED !332993!*!*!3! ! ! !*!*!*!B!*!*!A! !C !N!L!1!001!N!1G!A!Y!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $246.3 million to TEXTRON SYSTEMS CORP for work described as: 200104!000007!5700!GM11 !AAC/YHK !F0863501C0005 !A!N!*!N! !20010105!20011231!001863943!361350473!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDL… Key points: 1. Significant contract value of $246M awarded for ammunition. 2. Sole-source procurement raises questions about competition and price discovery. 3. Potential for higher costs due to lack of competitive bidding. 4. Sector focus on defense manufacturing, specifically ammunition.

Value Assessment

Rating: questionable

The contract value of $246M for ammunition appears substantial. Benchmarking against similar ammunition contracts is difficult without more specific product details, but the sole-source nature suggests potential for inflated pricing compared to a competitive environment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating no competition. This method limits price discovery and may result in taxpayers paying a premium for the ammunition.

Taxpayer Impact: The lack of competition in this sole-source award could lead to higher costs for taxpayers compared to a competitively bid contract.

Public Impact

Taxpayers may be overpaying for ammunition due to the absence of competitive bidding. The Department of Defense's reliance on a single supplier for this critical item could pose a supply chain risk. Lack of transparency in the sole-source process hinders public understanding of defense spending efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source procurement
Lack of competition
Potential for overpricing
Limited transparency

Positive Signals

Addresses critical defense need for ammunition
Established supplier relationship

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition. Defense spending on munitions is a significant portion of the overall budget, and benchmarks vary widely based on type and quantity.

Small Business Impact

There is no indication in the provided data that small businesses were involved in this sole-source contract. The award went directly to Textron Systems Corp.

Oversight & Accountability

The sole-source nature of this award warrants further oversight to ensure the price paid is fair and reasonable. Accountability for the justification of sole-source procurement is crucial.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
Limited transparency in procurement process
Risk of supply chain dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $246.3 million to TEXTRON SYSTEMS CORP. 200104!000007!5700!GM11 !AAC/YHK !F0863501C0005 !A!N!*!N! !20010105!20011231!001863943!361350473!001338979!N!TEXTRON SYSTEMS CORP !201 LOWELL STREET !WILMINGTON !MA!01887!80195!017!25!WILMINGTON !MIDDLESEX !MASS !+000007721114!N!N!000000000000!1095!MISCELLANEOUS WEAPONS !A6 !AMMUNITION !3000!NOT DISCERNABLE OR CLASSIFIED !332993!*!*!3! ! ! !*!*!*!B!*!*!A!

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $246.3 million.

What is the period of performance?

Start: 2001-01-05. End: 2006-03-31.

What was the justification for awarding this ammunition contract on a sole-source basis, and was a full and open competition truly not feasible?

The justification for sole-source procurement is critical for understanding the value received. If a full and open competition was not feasible due to unique capabilities, urgent need, or proprietary technology, then the price paid should be rigorously assessed against available market data. Without this justification, the $246M award raises concerns about potential inefficiencies and higher costs for taxpayers.

How does the per-unit cost of this ammunition compare to similar items procured competitively by the Department of Defense or other government agencies?

Comparing the per-unit cost is essential for assessing value. Given this was a sole-source award, it's likely that the price is higher than if it had been competitively bid. A detailed analysis would require access to the contract's pricing structure and comparison with publicly available data on similar ammunition types procured through competitive means to identify any significant discrepancies.

What are the long-term implications of relying on a sole-source provider for this type of ammunition for national security and supply chain resilience?

Sole-source reliance can create vulnerabilities in the defense supply chain, potentially leading to price escalations and reduced flexibility in meeting demand. It also limits opportunities for innovation and competition among multiple suppliers. Over time, this can impact national security by potentially limiting access to critical munitions or increasing costs, necessitating careful strategic planning and periodic re-evaluation of competitive sourcing options.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 201 LOWELL STREET, WILMINGTON, MA, 06

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Timeline