DoD awards $22M for 5.56mm Frangible Ammunition to The Kinetic Group Sales LLC
Contract Overview
Contract Amount: $22,045,500 ($22.0M)
Contractor: THE Kinetic Group Sales LLC
Awarding Agency: Department of Defense
Start Date: 2023-08-16
End Date: 2026-06-30
Contract Duration: 1,049 days
Daily Burn Rate: $21.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR THE 5.56MM SEMI-JACKETED FRANGIBLE CARTRIDGE, MK311 MOD 3 (AA40) AMMUNITION
Place of Performance
Location: ANOKA, ANOKA County, MINNESOTA, 55303
Plain-Language Summary
Department of Defense obligated $22.0 million to THE KINETIC GROUP SALES LLC for work described as: DELIVERY ORDER FOR THE 5.56MM SEMI-JACKETED FRANGIBLE CARTRIDGE, MK311 MOD 3 (AA40) AMMUNITION Key points: 1. Ammunition procurement for military operations. 2. Competition was full and open, suggesting market availability. 3. Risk is moderate, tied to supply chain and operational demand. 4. Sector: Defense - Small Arms Ammunition Manufacturing.
Value Assessment
Rating: good
The award amount of $22.05M for approximately 1049 days of supply appears reasonable for specialized ammunition. Benchmarking against similar large-scale ammunition contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, indicating multiple vendors could bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive award process aims to secure the best possible price for taxpayers, minimizing unnecessary expenditure on essential munitions.
Public Impact
Ensures readiness of U.S. Army personnel by providing necessary training and combat ammunition. Supports domestic manufacturing capabilities within the small arms ammunition sector. Contributes to the overall defense supply chain resilience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in raw materials.
- Dependence on a single awardee for this specific cartridge type.
- Geopolitical factors impacting global supply chains.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract structure provides cost certainty.
- Long-term contract ensures sustained supply.
Sector Analysis
This contract falls within the Small Arms Ammunition Manufacturing sector, a critical component of the defense industrial base. Spending in this area is driven by training requirements and operational needs.
Small Business Impact
While the awardee is listed as 'THE KINETIC GROUP SALES LLC', it is not explicitly stated if they are a small business. Further investigation would be needed to determine small business participation.
Oversight & Accountability
The Department of the Army's contracting process, including the use of full and open competition, suggests adherence to standard oversight procedures. Monitoring delivery and quality will be key.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Supply chain vulnerability for specialized components.
- Potential for obsolescence if technology or training evolves rapidly.
- Dependence on a single awardee for this specific item.
- Price volatility of raw materials.
Tags
small-arms-ammunition-manufacturing, department-of-defense, mn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to THE KINETIC GROUP SALES LLC. DELIVERY ORDER FOR THE 5.56MM SEMI-JACKETED FRANGIBLE CARTRIDGE, MK311 MOD 3 (AA40) AMMUNITION
Who is the contractor on this award?
The obligated recipient is THE KINETIC GROUP SALES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.0 million.
What is the period of performance?
Start: 2023-08-16. End: 2026-06-30.
What is the projected per-unit cost of the MK311 Mod 3 cartridge under this contract, and how does it compare to historical or industry benchmarks?
The total award is $22,045,500 over 1049 days. Without the exact quantity of cartridges, a precise per-unit cost cannot be calculated. However, if we assume a rough estimate based on typical training volumes, the per-unit cost would need to be benchmarked against previous contracts for similar frangible ammunition or against publicly available pricing for comparable commercial products to assess value.
What are the primary risks associated with relying on this specific type of frangible ammunition, and what mitigation strategies are in place?
Risks include potential supply chain disruptions for specialized components, degradation of shelf life, and the possibility of evolving training requirements that necessitate different ammunition types. Mitigation strategies likely involve maintaining strategic stockpiles, diversifying suppliers where feasible, and continuous review of ammunition technology and training doctrine.
How effectively does this contract support the Department of the Army's training and operational readiness goals for 5.56mm small arms?
This contract directly supports readiness by ensuring a consistent supply of a specific type of ammunition crucial for training and certain combat scenarios. The firm fixed price and long duration suggest a commitment to sustained availability, which is vital for maintaining proficiency and operational capability across various units.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vista Outdoor Inc.
Address: 1 VISTA WAY, ANOKA, MN, 55303
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: $22,045,500
Exercised Options: $22,045,500
Current Obligation: $22,045,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN22D0026
IDV Type: IDC
Timeline
Start Date: 2023-08-16
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2025-10-01
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