Navy Awards $48.1M Contract for Fuses and Primers, Facing Competition from L3Harris
Contract Overview
Contract Amount: $48,151,641 ($48.2M)
Contractor: L3harris Fuzing and Ordnance Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2003-05-21
End Date: 2015-02-27
Contract Duration: 4,300 days
Daily Burn Rate: $11.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200311!000039!1700!AT718 !NAVAL AIR SYSTEMS COMMAND !N0001903C0350 !A!N! !N! !20030521!20060929!041603077!041603077!008898843!N!KDI PRECISION PRODUCTS, INC !3975 MCMANN ROAD !CINCINNATI !OH!45245!15000!061!39!CINCINNATI !HAMILTON !OHIO !+000037655112!N!N!000000000000!1390!FUSES AND PRIMERS !A5 !WEAPONS !2CPQ!AGM-154C !332993!A!B!3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!002!B! !A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! !Y! ! !0001! !
Place of Performance
Location: CINCINNATI, CLERMONT County, OHIO, 45245, UNITED STATES OF AMERICA
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $48.2 million to L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC. for work described as: 200311!000039!1700!AT718 !NAVAL AIR SYSTEMS COMMAND !N0001903C0350 !A!N! !N! !20030521!20060929!041603077!041603077!008898843!N!KDI PRECISION PRODUCTS, INC !3975 MCMANN ROAD !CINCINNATI !OH!45245!15000!061!39!CINCINNATI !HAMIL… Key points: 1. The contract is for fuses and primers, specifically for the AGM-154C. 2. L3Harris Fuzing and Ordnance Systems, Inc. is a competitor in this market. 3. The award was made under full and open competition. 4. The sector is Defense, specifically Ammunition Manufacturing.
Value Assessment
Rating: fair
The contract value is $48.1 million. Without more specific unit cost data or benchmarks for similar fuse and primer components, a precise value assessment is difficult. However, the duration of the contract suggests a significant quantity of items.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, as the pricing is likely to be driven by market forces.
Public Impact
This contract supports the Naval Air Systems Command's readiness and operational capabilities. The components are critical for the functioning of specific munitions like the AGM-154C. The award contributes to the defense industrial base, particularly in ordnance manufacturing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration is long (4300 days).
- Limited information on specific performance metrics.
- Potential for price escalation over the contract term.
Positive Signals
- Awarded under full and open competition.
- Clear product identification (fuses and primers).
- Established vendor base for this type of component.
Sector Analysis
This contract falls within the Defense sector, specifically the Ammunition (except Small Arms) Manufacturing industry. Spending in this area is critical for national security and military readiness, with benchmarks often tied to specific weapon system requirements and geopolitical factors.
Small Business Impact
The data indicates this contract was not awarded to a small business. The prime contractor, KDI Precision Products, Inc., is listed with a DUNS number, but no small business set-aside or subcontracting information is readily available in this record.
Oversight & Accountability
The award was made by the Naval Air Systems Command, a component of the Department of the Navy. Standard government procurement oversight processes would apply, including contract administration and performance monitoring to ensure compliance and value.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long contract duration may increase risk of price changes.
- Lack of specific performance metrics.
- Potential supply chain vulnerabilities for specialized components.
- Reliance on a single prime contractor for critical defense items.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, oh, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.2 million to L3HARRIS FUZING AND ORDNANCE SYSTEMS, INC.. 200311!000039!1700!AT718 !NAVAL AIR SYSTEMS COMMAND !N0001903C0350 !A!N! !N! !20030521!20060929!041603077!041603077!008898843!N!KDI PRECISION PRODUCTS, INC !3975 MCMANN ROAD !CINCINNATI !OH!45245!15000!061!39!CINCINNATI !HAMILTON !OHIO !+000037655112!N!N!000000000000!1390!FUSES AND PRIMERS !A5 !WEAPONS !2CPQ!AGM-154C !332993!A!B!3! ! ! ! ! !99990909!B
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 Navy).
What is the total obligated amount?
The obligated amount is $48.2 million.
What is the period of performance?
Start: 2003-05-21. End: 2015-02-27.
What is the specific unit cost for the fuses and primers, and how does it compare to industry benchmarks for similar components?
The provided data does not include specific unit costs for the fuses and primers. The total contract value is $48.1 million over a duration of 4300 days. To assess value, a detailed breakdown of quantities and unit prices would be needed, along with comparisons to publicly available pricing data for comparable defense components or historical contract awards for similar items.
What are the key performance requirements and potential risks associated with the reliability and timely delivery of these critical ordnance components?
The key performance requirements would likely revolve around the precise functioning and safety of the fuses and primers, as well as adherence to strict delivery schedules to support military operations. Potential risks include manufacturing defects, supply chain disruptions, and the inherent dangers associated with handling explosive ordnance components, which could impact both performance and safety.
How effectively does the full and open competition process ensure optimal pricing and quality for these specialized defense components?
Full and open competition is designed to foster a competitive environment, driving down prices and encouraging high quality as vendors vie for the contract. For specialized components like fuses and primers, this process allows the government to leverage the expertise of multiple manufacturers, potentially leading to better technological solutions and cost savings compared to sole-source or limited competition awards.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
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, 45245
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2003-05-21
Current End Date: 2015-02-27
Potential End Date: 2015-02-27 00:00:00
Last Modified: 2016-11-17
More Contracts from L3harris Fuzing and Ordnance Systems, Inc.
- Contract IS for the Production of the M734A1 MOF and M783 Pd/Dly Fuzes. This Acquisition Encompasses These TWO Fuzes and ANY Variants Thereof. the Contract IS a Firm Fixed Price Contract in Which Consists of a Base Year, With 4 Option Years — $403.4M (Department of Defense)
- TO Award Contract for M734A1 and M783 Fuzes to L-3 Fuzing&ordnance Systems Inc. the A-Apa Army Procurement Base Award IS for a Quantity of 21,589 M734A1 Multi-Option Fuzes Plus a First Article Test, and 175,499 M783 Pd/Dly Fuzes — $371.7M (Department of Defense)
- 200308!000710!2100!AE30 !tacom - Picatinny !daae3003c1121 !A!N! !N! !20030521!20090930!041603077!041603077!008898843!n!kdi Precision Products, Inc !3975 Mcmann Road !cincinnati !oh!45245!15000!061!39!cincinnati !hamilton !ohio !+000018505947!n!n!000000000000!1390!fuses and Primers !A6 !ammunition !1000!NOT Discernable or Classified !332992!E! !3! ! ! ! ! !99990909!B! ! !B! !a!n!j!2!002!n!3a!a!n!a! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $214.5M (Department of Defense)
- Order for M762A1 Electronic Timing Fuze Production Quantities — $113.3M (Department of Defense)
- THE Purpose of Delivery Order W15qkn23f0396 IS for the Purchase of M734A1 and M783 Fuzes — $86.0M (Department of Defense)
View all L3harris Fuzing and Ordnance Systems, Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)