DoD's $8.6M First Article Testing for Ordnance Accessories Awarded to Anduril Industries
Contract Overview
Contract Amount: $8,589,708 ($8.6M)
Contractor: Anduril Industries, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-11-22
End Date: 2025-10-17
Contract Duration: 329 days
Daily Burn Rate: $26.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FIRST ARTICLE TESTING (FAT) UNITS
Place of Performance
Location: COSTA MESA, ORANGE County, CALIFORNIA, 92626
Plain-Language Summary
Department of Defense obligated $8.6 million to ANDURIL INDUSTRIES, INC. for work described as: FIRST ARTICLE TESTING (FAT) UNITS Key points: 1. Anduril Industries secures a significant contract for FAT units, indicating potential for future large-scale production. 2. Full and open competition was utilized, suggesting a competitive bidding process for this ordnance accessory requirement. 3. The contract's focus on testing suggests a critical phase in the procurement lifecycle, with potential risks if testing fails. 4. The sector is Small Arms, Ordnance, and Ordnance Accessories Manufacturing, a specialized area within defense procurement.
Value Assessment
Rating: fair
The contract value of $8.6 million for 4 units over 329 days appears high on a per-unit basis. Benchmarking against similar FAT contracts for specialized ordnance is difficult without more data, but the duration suggests complex testing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific nature of 'First Article Testing' might limit the number of truly capable bidders, potentially impacting price discovery.
Taxpayer Impact: Taxpayer funds are being used for the testing of new ordnance accessories. The ultimate value to taxpayers depends on the success of this testing and potential future cost savings from the acquired technology.
Public Impact
This contract supports the development and testing of critical ordnance accessories for the Department of the Navy. The award to Anduril Industries, a known defense technology firm, highlights innovation in military hardware. Successful testing could lead to the wider adoption of these accessories, enhancing naval capabilities. The use of taxpayer funds for advanced military testing necessitates transparency and accountability in the process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High per-unit cost for testing units.
- Potential for delays if testing is unsuccessful.
- Limited competition for highly specialized testing services.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense capabilities.
- Utilizes a firm fixed-price contract type.
Sector Analysis
The defense sector, particularly ordnance manufacturing, involves specialized and often high-cost components. Benchmarks for FAT units are scarce due to their unique testing nature, but the value suggests a significant technological advancement or complex manufacturing process.
Small Business Impact
This award was not made to a small business. The contract value and specialized nature of ordnance testing may favor larger, established defense contractors with specific expertise and facilities.
Oversight & Accountability
The Department of the Navy is responsible for overseeing this contract. Robust oversight is crucial to ensure the testing meets all requirements and that taxpayer funds are used efficiently, especially given the high per-unit cost.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High per-unit cost for testing.
- Potential for testing failure and associated financial loss.
- Limited number of qualified bidders for specialized FAT.
- Dependency on a single contractor for critical testing phase.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.6 million to ANDURIL INDUSTRIES, INC.. FIRST ARTICLE TESTING (FAT) UNITS
Who is the contractor on this award?
The obligated recipient is ANDURIL INDUSTRIES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $8.6 million.
What is the period of performance?
Start: 2024-11-22. End: 2025-10-17.
What is the expected outcome if the first article testing fails?
If the first article testing fails, the Department of the Navy may not proceed with further production or procurement of these specific ordnance accessories. This could result in a loss of the invested funds for the testing phase and require the initiation of a new testing or procurement process, potentially leading to delays in fielding new capabilities and additional costs.
How does the pricing compare to similar ordnance accessory testing contracts?
Direct comparison of pricing for 'First Article Testing' units is challenging due to the highly specialized nature of ordnance and the specific requirements of each testing phase. Without access to detailed specifications and the scope of work for this contract, it's difficult to establish a precise benchmark. However, the reported value suggests a significant investment, warranting scrutiny of the cost-effectiveness relative to the expected military benefit.
What is the long-term strategic value of this FAT contract for the Navy?
The long-term strategic value lies in validating the performance and manufacturability of potentially advanced ordnance accessories. Successful testing could lead to improved weapon system effectiveness, enhanced soldier safety, or cost efficiencies in future large-scale production. It represents a crucial step in de-risking the adoption of new technologies before committing to mass procurement.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: M6785424R0056
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1400 ANDURIL, COSTA MESA, CA, 92626
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: $8,589,708
Exercised Options: $8,589,708
Current Obligation: $8,589,708
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: M6785425D0057
IDV Type: IDC
Timeline
Start Date: 2024-11-22
Current End Date: 2025-10-17
Potential End Date: 2025-10-17 00:00:00
Last Modified: 2025-12-16
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