DoD's $15.3M ammo can contract awarded to W S Darley & Co raises value and competition questions

Contract Overview

Contract Amount: $15,267,155 ($15.3M)

Contractor: W S Darley & CO

Awarding Agency: Department of Defense

Start Date: 2025-09-24

End Date: 2026-05-04

Contract Duration: 222 days

Daily Burn Rate: $68.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 29

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 4569601334!OPTIA .50CAL AMMO CAN? SERVER

Place of Performance

Location: ITASCA, DUPAGE County, ILLINOIS, 60143

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $15.3 million to W S DARLEY & CO for work described as: 4569601334!OPTIA .50CAL AMMO CAN? SERVER Key points: 1. The contract's value proposition appears questionable given the unit price compared to similar items. 2. Limited competition may have inflated costs, impacting taxpayer return on investment. 3. The duration of the contract and the nature of the item suggest potential for price creep. 4. Performance context is limited, making it difficult to assess the contractor's track record on this specific item. 5. This contract falls within the Defense Logistics Agency's broad category of equipment and supplies. 6. The firm fixed-price structure offers some cost certainty, but doesn't guarantee optimal value. 7. The exclusion of sources in the competition phase warrants further scrutiny.

Value Assessment

Rating: questionable

The awarded amount of $15.3 million for .50 caliber ammunition cans seems high when benchmarked against publicly available pricing for similar containers. While specific features and durability requirements may justify a premium, the absence of detailed specifications makes a precise comparison difficult. The contract's value for money is further impacted by the limited competition, suggesting that taxpayers may not have received the most competitive pricing available in the market. Without more granular data on the exact specifications and the bidding process, it is challenging to definitively assess the fairness of the price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that while competition was sought, certain potential bidders were excluded. This limited competition raises concerns about whether the full spectrum of market capabilities and pricing was explored. With only 29 bids received, and the exclusion of some sources, it is possible that the price discovery mechanism was not as robust as it could have been under a truly open and unrestricted competition. This approach can sometimes lead to higher prices than might be achieved with broader participation.

Taxpayer Impact: The limited competition means taxpayers may have paid more than necessary for these ammunition cans. The exclusion of potential bidders restricts the government's ability to secure the lowest possible prices through robust market engagement.

Public Impact

The primary beneficiaries are military units requiring secure storage and transport for .50 caliber ammunition. The contract delivers essential equipment for maintaining the readiness and operational effectiveness of armed forces. The geographic impact is likely nationwide, supporting various military installations and deployment needs. Workforce implications are minimal for this specific contract, as it focuses on equipment procurement rather than direct service provision.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher per-unit cost for taxpayers.
The exclusion of sources in the procurement process warrants further investigation into fairness and market access.
Lack of detailed performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The long-term need for such containers could lead to repeated procurements with similar competition limitations.

Positive Signals

The firm fixed-price contract provides cost certainty for the government.
The Defense Logistics Agency is a major procurement entity with established processes.
The contract duration is defined, allowing for planned inventory management.

Sector Analysis

This contract falls within the broader defense logistics and equipment sector, specifically focusing on the procurement of durable goods for military use. The market for military supply and equipment is characterized by specialized manufacturers and distributors, often operating under strict government regulations and quality standards. While ammunition cans might seem like a simple item, their military-grade requirements necessitate specific materials and manufacturing processes. Comparable spending benchmarks are difficult to establish without knowing the exact specifications, but large-scale government procurements of durable goods can range from millions to billions, depending on the item and quantity.

Small Business Impact

The data indicates that small business participation was not a primary focus for this contract, as the 'small business' flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the procurement likely targeted larger, established manufacturers capable of meeting the volume and specifications. Consequently, the direct impact on the small business ecosystem for this specific award appears minimal, though larger prime contractors may engage small businesses for components or related services.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), responsible for monitoring contractor performance, compliance, and financial accountability. The Defense Logistics Agency (DLA) itself has internal oversight mechanisms. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often not publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Ammunition Storage Solutions
Defense Logistics Agency Procurement
Tactical Equipment Contracts
Department of Defense Supply Chain Management
Federal Acquisition Regulation (FAR) Compliance

Risk Flags

Limited Competition
Potential for Overpricing
Lack of Detailed Specifications
Exclusion of Sources

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.3 million to W S DARLEY & CO. 4569601334!OPTIA .50CAL AMMO CAN? SERVER

Who is the contractor on this award?

The obligated recipient is W S DARLEY & CO.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $15.3 million.

What is the period of performance?

Start: 2025-09-24. End: 2026-05-04.

What is the track record of W S Darley & Co with the Department of Defense, particularly for similar equipment?

W S Darley & Co has a history of contracts with the Department of Defense, primarily related to fire equipment, emergency vehicles, and related supplies. While they are a known entity within the defense supply chain, their specific track record with ammunition cans of this scale and type would require a deeper dive into their contract history. Analyzing past performance on similar items, including delivery timeliness, quality adherence, and price competitiveness, is crucial for a comprehensive assessment. Without access to detailed past performance reviews or specific contract data beyond what's publicly available, it's difficult to definitively gauge their expertise and reliability for this particular procurement.

How does the unit price of these ammunition cans compare to commercial equivalents or other government contracts?

Benchmarking the unit price is challenging without precise specifications. However, general market research for durable, military-grade .50 caliber ammo cans suggests a wide price range, often between $10-$30 per unit, depending on material, features (like seals), and quantity. If the awarded contract's unit price falls significantly above this range, it raises concerns about value for money, especially considering the potential for bulk purchasing discounts in government contracts. The 'limited competition' aspect further suggests that the price might not reflect the most competitive market rate achievable. A detailed analysis would require comparing the exact specifications (material, dimensions, load capacity, sealing) against other awarded government contracts or large commercial orders.

What are the specific risks associated with a 'limited competition' award for essential military supplies?

Limited competition, particularly when sources are excluded, introduces several risks. Firstly, it can lead to higher prices for taxpayers as the government may not benefit from the full competitive pressure that drives down costs. Secondly, it can restrict innovation and the adoption of potentially superior or more cost-effective solutions from excluded vendors. Thirdly, it raises concerns about fairness and equal opportunity in government contracting. For essential military supplies, reliance on a limited pool of contractors could also pose supply chain risks if those contractors face production issues or fail to meet demand. The exclusion of sources, specifically, warrants scrutiny to ensure it was based on legitimate technical or capability requirements rather than arbitrary restrictions.

What is the expected lifespan and usage intensity of these ammunition cans, and how does this influence the value assessment?

Military-grade ammunition cans are designed for durability and repeated use in demanding environments, typically expected to last for many years, potentially decades, with proper care. Their primary function is to protect ammunition from moisture, dust, and physical damage, ensuring its integrity for operational readiness. The value assessment is therefore not just about the initial purchase price but also the total cost of ownership over the item's lifespan. If these cans are highly durable and long-lasting, a higher initial price might be justified if it translates to lower replacement costs over time. However, without specific data on expected lifespan under military conditions and the intensity of use, it's difficult to quantify this long-term value benefit accurately against the initial procurement cost.

How does this contract's value compare to overall spending on similar defense logistics and equipment by the DLA?

The Defense Logistics Agency (DLA) manages a vast and complex supply chain, with annual spending often in the tens of billions of dollars across numerous categories, including equipment, parts, and general supplies. A $15.3 million contract for ammunition cans, while significant in absolute terms, represents a relatively small fraction of the DLA's total budget. To assess its comparative value, one would need to analyze historical spending trends for similar items (e.g., containers, storage solutions) within the DLA and the broader Department of Defense. This contract's value appears moderate within the context of large-scale defense procurement, but its specific value proposition hinges on the unit price and the necessity of the item, which are subject to the competition and pricing analyses mentioned previously.

Industry Classification

NAICS: Wholesale Trade › Machinery, Equipment, and Supplies Merchant Wholesalers › Service Establishment Equipment and Supplies Merchant Wholesalers

Product/Service Code: FIRE/RESCUE/SAFETY; ENVIRO PROTECT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 29

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 325 SPRING LAKE DR, ITASCA, IL, 60143

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $15,267,155

Exercised Options: $15,267,155

Current Obligation: $15,267,155

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SPE8EJ21D1025

IDV Type: IDC

Timeline