DoD Awards $27.1M Firm Fixed Price Order to Textron Systems for Ammunition Manufacturing

Contract Overview

Contract Amount: $27,146,857 ($27.1M)

Contractor: Textron Systems Corporation

Awarding Agency: Department of Defense

Start Date: 2022-07-29

End Date: 2025-09-15

Contract Duration: 1,144 days

Daily Burn Rate: $23.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: XM204 DELIVERY ORDER 0001

Place of Performance

Location: WILMINGTON, MIDDLESEX County, MASSACHUSETTS, 01887

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $27.1 million to TEXTRON SYSTEMS CORPORATION for work described as: XM204 DELIVERY ORDER 0001 Key points: 1. Significant award for ammunition manufacturing, highlighting defense sector spending. 2. Textron Systems Corporation is the sole awardee, raising questions about competition. 3. The contract's duration and firm fixed price structure suggest cost control efforts. 4. Potential for taxpayer impact due to the lack of competitive bidding.

Value Assessment

Rating: fair

The award amount of $27.1M for ammunition manufacturing appears within a reasonable range for specialized defense contracts. However, without specific per-unit cost data or benchmarks for similar ammunition types, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This 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 a higher price than if multiple vendors had bid, impacting taxpayer funds.

Public Impact

Ensures supply of critical ammunition for the Department of the Army. Supports Textron Systems Corporation's manufacturing capabilities and workforce. Potential for follow-on contracts based on performance and future needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing due to sole-source award

Positive Signals

Award supports critical defense needs
Firm fixed price contract provides cost certainty

Sector Analysis

This award falls within the defense manufacturing sector, specifically focusing on ammunition. Spending in this area is driven by military readiness requirements and technological advancements in weaponry.

Small Business Impact

The awardee, Textron Systems Corporation, is a large business. There is no indication of small business participation in this specific delivery order.

Oversight & Accountability

The Department of Defense is responsible for oversight of this contract. The firm fixed price nature of the contract provides some level of cost accountability.

Related Government Programs

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

Risk Flags

Sole-source award limits competition.
Potential for inflated pricing.
Lack of transparency in price negotiation.
No clear indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.1 million to TEXTRON SYSTEMS CORPORATION. XM204 DELIVERY ORDER 0001

Who is the contractor on this award?

The obligated recipient is TEXTRON SYSTEMS CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $27.1 million.

What is the period of performance?

Start: 2022-07-29. End: 2025-09-15.

What is the justification for the sole-source award, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Agencies are still required to conduct market research and negotiate for fair and reasonable pricing, even without competition. Documentation of these efforts is crucial for accountability.

How does the per-unit cost of this ammunition compare to similar contracts awarded competitively?

Without access to specific per-unit cost data for this contract and comparable competitive contracts, a direct comparison is not possible. A detailed analysis would require access to detailed contract line item data and market research reports on similar ammunition procurements.

What is the long-term strategic value of this sole-source award for the Department of Defense?

The long-term strategic value may lie in securing a reliable supply chain for critical munitions from a known provider, potentially ensuring readiness and reducing reliance on less stable sources. However, this must be weighed against the potential cost inefficiencies of a non-competitive award.

Industry Classification

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

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Textron Inc

Address: 201 LOWELL ST, WILMINGTON, MA, 01887

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: $27,146,857

Exercised Options: $27,146,857

Current Obligation: $27,146,857

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $17,081,527

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W15QKN22D0015

IDV Type: IDC

Timeline