DoD awards $115.7M contract for Ammunition Manufacturing to Textron Systems Corporation

Contract Overview

Contract Amount: $115,705,699 ($115.7M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2007-01-31

End Date: 2011-04-29

Contract Duration: 1,549 days

Daily Burn Rate: $74.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: FRP-12 SFW

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $115.7 million to TEXTRON SYSTEMS CORPORATION for work described as: FRP-12 SFW Key points: 1. Contract awarded to Textron Systems Corporation for ammunition manufacturing. 2. The contract value is $115,705,699. 3. This is a definitive contract with a firm fixed price. 4. The contract was not competed. 5. The period of performance is 1549 days.

Value Assessment

Rating: fair

The firm fixed price contract for ammunition manufacturing was awarded without competition. The total value is substantial at over $115 million. Without competitive bidding, it's difficult to assess if this price represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these ammunition manufacturing services.

Public Impact

Defense spending on ammunition manufacturing. Contract awarded to a single vendor, Textron Systems Corporation. Long contract duration of over 4 years. Potential for increased costs due to non-competitive award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Sole-source award
Long contract duration

Positive Signals

Definitive contract
Firm fixed price

Sector Analysis

This contract falls under the Ammunition (except Small Arms) Manufacturing sector. Spending in this sector is critical for national defense readiness. Benchmarks for similar sole-source ammunition contracts are difficult to establish without competitive data.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'sb' field is false and the awardee is Textron Systems Corporation, a large defense contractor.

Oversight & Accountability

The contract was managed by the Defense Contract Management Agency. Oversight would focus on ensuring delivery and quality of ammunition, especially given the sole-source nature of the award.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Sole-source award
Lack of competition
Potential for inflated pricing
Long contract duration without competitive review

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $115.7 million to TEXTRON SYSTEMS CORPORATION. FRP-12 SFW

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $115.7 million.

What is the period of performance?

Start: 2007-01-31. End: 2011-04-29.

What was the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is not provided in the data. Typically, such justifications include reasons like urgency, unique capabilities of the contractor, or lack of other responsible sources. Without this information, it's impossible to fully assess the necessity of bypassing the competitive bidding process.

What are the risks associated with a sole-source contract for ammunition manufacturing?

The primary risk is paying a premium due to the absence of competitive pressure, potentially leading to inflated costs for taxpayers. Other risks include reduced innovation, potential for contractor complacency, and a lack of transparency in pricing. Ensuring strict oversight and performance metrics becomes even more crucial.

How does the firm fixed price structure impact value for money in this sole-source scenario?

A firm fixed price contract aims to provide cost certainty. However, in a sole-source situation, the 'fixed' price might not reflect the best possible value achievable through competition. While it protects the government from cost overruns, the initial price negotiation is critical and potentially less advantageous without competitive leverage.

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

Parent Company: Textron Inc (UEI: 001338979)

Address: 201 LOWELL ST, WILMINGTON, MA, 01887

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,710,990,801

Exercised Options: $395,699,961

Current Obligation: $115,705,699

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline