DoD Awards $26.6M for NGSW Ammunition to Sig Sauer Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $26,599,571 ($26.6M)
Contractor: SIG Sauer Inc.
Awarding Agency: Department of Defense
Start Date: 2023-05-10
End Date: 2025-06-25
Contract Duration: 777 days
Daily Burn Rate: $34.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR NGSW AMMUNITION.
Place of Performance
Location: JACKSONVILLE, PULASKI County, ARKANSAS, 72076
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $26.6 million to SIG SAUER INC. for work described as: DELIVERY ORDER FOR NGSW AMMUNITION. Key points: 1. Significant award for Next Generation Squad Weapon ammunition. 2. Sig Sauer Inc. is the sole awardee for this delivery order. 3. The contract is Firm Fixed Price, indicating price certainty. 4. Spending falls within the Small Arms, Ordnance, and Ordnance Accessories Manufacturing sector.
Value Assessment
Rating: good
The award amount of $26.6 million for ammunition is substantial. Benchmarking against similar large-scale ammunition procurements would be necessary for a precise value assessment, but the firm fixed price structure suggests a degree of price control.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of potential suppliers to bid. This method is expected to yield fair market prices.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for this significant ammunition requirement.
Public Impact
Ensures supply of critical ammunition for modern military equipment. Supports advanced weapon system capabilities for the U.S. Army. Potential impact on readiness and operational effectiveness. Award to a major defense contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific unit cost data for detailed analysis.
- Single awardee for this specific delivery order, though competition was full and open.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract type.
- Supports critical modernization efforts.
Sector Analysis
This spending falls within the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector, a critical area for defense procurement. Benchmarks for ammunition contracts can vary widely based on type, quantity, and specific requirements.
Small Business Impact
The data indicates this award was not set aside for small businesses, and the prime contractor, Sig Sauer Inc., is a large entity. Further analysis would be needed to determine small business participation as subcontractors.
Oversight & Accountability
The Department of the Army's procurement process, including the use of full and open competition, suggests established oversight. However, ongoing monitoring of performance and cost adherence is crucial for accountability.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential single point of failure in supply chain.
- Limited visibility into subcontractor small business participation.
- Dependence on one manufacturer for critical ordnance.
- No specific unit cost data for granular analysis.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, ar, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.6 million to SIG SAUER INC.. DELIVERY ORDER FOR NGSW AMMUNITION.
Who is the contractor on this award?
The obligated recipient is SIG SAUER INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $26.6 million.
What is the period of performance?
Start: 2023-05-10. End: 2025-06-25.
What is the projected cost per round or unit of ammunition under this contract, and how does it compare to historical or industry benchmarks?
The provided data does not include specific per-unit cost information for the ammunition. A detailed analysis would require access to the contract's line item details or historical pricing data for similar ammunition types procured by the Department of Defense. Without this, a precise benchmark comparison is not possible, though the firm fixed price suggests a negotiated rate.
What are the specific risks associated with relying on a single manufacturer for this critical ammunition, even if the initial competition was broad?
While the initial competition was full and open, relying on a single manufacturer for this delivery order introduces risks such as potential supply chain disruptions, limited flexibility in case of increased demand, and reduced leverage for future price negotiations. Dependence on one source could also pose a national security risk if that source faces unforeseen operational challenges.
How effectively does this ammunition procurement contribute to the overall modernization goals of the Next Generation Squad Weapon program?
This procurement is directly tied to the operationalization of the Next Generation Squad Weapon (NGSW) program, a key modernization effort. By securing a significant supply of NGSW ammunition, the Department of the Army ensures that soldiers can effectively utilize the new weapon systems, thereby contributing to enhanced combat effectiveness and technological advancement in infantry capabilities.
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: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 72 PEASE BLVD, NEWINGTON, NH, 03801
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $26,599,571
Exercised Options: $26,599,571
Current Obligation: $26,599,571
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN22D0008
IDV Type: IDC
Timeline
Start Date: 2023-05-10
Current End Date: 2025-06-25
Potential End Date: 2025-06-25 12:06:00
Last Modified: 2024-05-01
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