DoD awards $47.3M contract for small arms to SIG Sauer Inc., emphasizing full and open competition

Contract Overview

Contract Amount: $47,299,216 ($47.3M)

Contractor: SIG Sauer Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-26

End Date: 2024-12-31

Contract Duration: 462 days

Daily Burn Rate: $102.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PROCUREMENT OF WEAPONS.

Place of Performance

Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $47.3 million to SIG SAUER INC. for work described as: PROCUREMENT OF WEAPONS. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $47.3 million is significant for small arms procurement. 3. SIG Sauer Inc. is the sole awardee, indicating their competitive advantage or specialized capability. 4. The contract duration of 462 days suggests a medium-term supply need. 5. The firm-fixed-price contract type shifts cost risk to the contractor. 6. This procurement falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' NAICS code.

Value Assessment

Rating: good

Benchmarking the value of this contract requires specific data on comparable small arms procurements. However, the firm-fixed-price structure is generally favorable for the government, as it caps the contractor's potential profit and transfers cost overrun risks. The award to a single entity, SIG Sauer Inc., warrants further investigation into whether the pricing reflects competitive pressures or a premium for specialized capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This method is generally preferred for maximizing competition and achieving the best value for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust bidding environment.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing for taxpayers by encouraging multiple vendors to offer their best terms.

Public Impact

The Department of the Army benefits from the acquisition of essential small arms. This contract supports the operational readiness of military personnel. The primary beneficiaries are the soldiers who will be equipped with these weapons. The contract's geographic impact is primarily centered around the contractor's operations and delivery points, with a specific mention of New Hampshire as the contractor's state.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition.
Potential for price escalation if SIG Sauer Inc. is the only viable supplier for these specific arms.
Limited insight into the performance metrics and quality assurance for the delivered weapons.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm-fixed-price contract type provides cost certainty for the government.
SIG Sauer Inc. is a known entity in firearms manufacturing, suggesting established quality.
The contract supports the critical mission needs of the Department of Defense.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on small arms. The market for military firearms is characterized by stringent quality requirements, specialized manufacturing capabilities, and often long-term relationships between government agencies and suppliers. While the exact market size for this specific type of procurement is not detailed, it is a critical component of national defense spending. Comparable spending benchmarks would involve analyzing other contracts for similar weapon systems awarded by various military branches.

Small Business Impact

The data indicates that small business participation was not a primary consideration for this specific award, as the 'sb' (small business) flag is false. There is no explicit mention of small business set-asides or subcontracting requirements. This suggests that the procurement likely focused on large, specialized manufacturers capable of meeting the stringent requirements for military-grade small arms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. Accountability measures are inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering goods within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Weapons Procurement
Small Arms and Ammunition Manufacturing
Ordnance and Ordnance Accessories
Military Equipment Supply Contracts

Risk Flags

Potential for sole-source reliance if competition was limited in practice despite 'full and open' designation.
Need for detailed performance metrics to ensure value for money.
Supply chain vulnerability assessment for critical components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.3 million to SIG SAUER INC.. PROCUREMENT OF WEAPONS.

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 $47.3 million.

What is the period of performance?

Start: 2023-09-26. End: 2024-12-31.

What is the historical spending pattern for small arms procurement by the Department of the Army over the last five years?

Analyzing the historical spending patterns for small arms procurement by the Department of the Army over the last five years would reveal trends in acquisition volume, average contract values, and the primary contractors utilized. This data is crucial for understanding if the current $47.3 million award to SIG Sauer Inc. represents a typical expenditure or a significant deviation. Without access to specific historical procurement databases, it's challenging to provide exact figures. However, general defense budget allocations suggest consistent investment in small arms to maintain troop readiness. Trends might show shifts towards specific types of firearms (e.g., modular systems, lighter materials) or increased reliance on specific manufacturers based on performance and technological advancements. Comparing this contract's value to previous awards for similar quantities and types of weapons would provide context on whether the pricing is competitive over time.

How does the unit cost of the small arms procured under this contract compare to similar systems acquired by other military branches or allied nations?

To assess the unit cost competitiveness, we would need to know the exact quantity and model of small arms being procured under this $47.3 million contract. Assuming a hypothetical unit cost, we could then benchmark it against publicly available data for similar weapon systems. For instance, if the contract is for standard-issue rifles, comparing the per-unit price to contracts awarded by the U.S. Marine Corps, U.S. Air Force, or even allied nations like the UK or Canada for comparable firearms would be informative. Factors such as bulk discounts, specific technological features, and the duration of the contract can influence unit pricing. A higher unit cost might be justified by superior performance, durability, or specific mission requirements, but it also warrants scrutiny to ensure taxpayers are receiving fair value.

What is SIG Sauer Inc.'s track record with the Department of Defense regarding contract performance and quality of delivered goods?

SIG Sauer Inc. has a well-established reputation in the firearms industry and has secured numerous contracts with the Department of Defense and other federal agencies. Their track record generally includes the delivery of reliable firearms, notably their P320 pistol, which was selected as the U.S. Army's Modular Handgun System. Performance reviews and past contract data would indicate their historical success rates in meeting delivery schedules and quality standards. While specific details on past contract issues or successes are often proprietary or require deep database dives, SIG Sauer's continued success in winning significant defense contracts suggests a generally positive performance history. Any concerns would likely be documented in contract performance reports or through Inspector General investigations, which are not publicly detailed here.

What are the specific performance requirements and quality assurance measures outlined in this contract for the small arms?

The contract details would specify the exact performance requirements, which could include criteria such as accuracy, reliability (mean rounds between failures), durability under various environmental conditions, weight, ergonomics, and compatibility with existing military equipment. Quality assurance measures typically involve rigorous testing protocols, inspections at various stages of production, and final acceptance testing before delivery. The firm-fixed-price nature of the contract implies that SIG Sauer Inc. is responsible for meeting these specifications at their own cost. While the specific technical specifications are not provided in the summary data, they are critical components of the contract that ensure the procured weapons meet the stringent operational needs of the Department of the Army.

Are there any known risks associated with the supply chain or manufacturing capabilities of SIG Sauer Inc. for this specific type of small arms procurement?

Assessing supply chain and manufacturing risks for SIG Sauer Inc. requires an in-depth review of their operational capacity, raw material sourcing, and any geopolitical factors that might impact production. As a major firearms manufacturer, SIG Sauer likely has robust supply chain management in place. However, potential risks could include disruptions in the availability of specific components (e.g., specialized alloys, microelectronics), labor shortages, or unforeseen geopolitical events affecting international suppliers. The 'full and open competition' aspect suggests that the Army assessed these risks and found SIG Sauer to be the most capable bidder. Further risk assessment would involve examining the contractor's past performance on similar large-scale procurements and their contingency planning for supply chain disruptions.

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: $47,299,216

Exercised Options: $47,299,216

Current Obligation: $47,299,216

Actual Outlays: $23,667,100

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