Army Awards $54.4M for Rifles to SIG SAUER Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $54,446,278 ($54.4M)
Contractor: SIG Sauer Inc.
Awarding Agency: Department of Defense
Start Date: 2023-11-17
End Date: 2025-11-28
Contract Duration: 742 days
Daily Burn Rate: $73.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR RIFLES
Place of Performance
Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801
Plain-Language Summary
Department of Defense obligated $54.4 million to SIG SAUER INC. for work described as: DELIVERY ORDER FOR RIFLES Key points: 1. Significant award for small arms procurement, highlighting defense sector spending. 2. SIG SAUER Inc. secured the contract, indicating their competitive position in the market. 3. The firm fixed price contract type suggests a degree of cost certainty. 4. The award falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' NAICS code.
Value Assessment
Rating: good
The award amount of $54.4M for rifles appears reasonable given the contract duration of over two years. Benchmarking against similar large-scale rifle procurements would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors can bid.
Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, likely resulting in a more cost-effective acquisition of essential weaponry.
Public Impact
Ensures the Department of the Army is equipped with necessary small arms. Supports a key defense contractor, potentially impacting jobs and industry capacity. The procurement contributes to national defense readiness and security. Delivery over a two-year period suggests a phased approach to equipping forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Long-term sustainment and maintenance costs not detailed in this award.
- Geopolitical factors could influence future demand or pricing.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost predictability.
- Long contract duration allows for planned integration and training.
Sector Analysis
This award is within the defense sector, specifically focusing on small arms manufacturing. Defense spending on weaponry is a significant portion of the federal budget, with benchmarks varying based on weapon system type and quantity.
Small Business Impact
This contract was awarded to SIG SAUER Inc., a large business. There is no indication of small business subcontracting in the provided data, which could be an area for future analysis.
Oversight & Accountability
The Department of the Army's procurement process, including the use of full and open competition, suggests adherence to standard oversight mechanisms. Further review of the source selection documentation would confirm accountability.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for sole-source justification if competition is later deemed insufficient.
- Dependency on a single contractor for critical weapon systems.
- Risk of obsolescence if technology advances rapidly.
- Supply chain vulnerabilities for critical components.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, nh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.4 million to SIG SAUER INC.. DELIVERY ORDER FOR RIFLES
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 $54.4 million.
What is the period of performance?
Start: 2023-11-17. End: 2025-11-28.
What is the specific rifle model being procured and its intended use case?
The specific rifle model is not detailed in the provided data. However, the NAICS code 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' and the awarding agency (Department of the Army) strongly suggest these are intended for infantry use, potentially as service rifles or specialized variants. Understanding the model would clarify performance capabilities and operational relevance.
How does the per-unit cost compare to previous procurements of similar rifle systems?
Without the specific rifle model and detailed unit breakdown, a precise per-unit cost comparison is not feasible. However, the total award of $54.4M over a duration of 742 days (approximately 2 years) suggests a significant quantity. Benchmarking against historical data for comparable military-grade rifles would be necessary to assess cost-effectiveness.
What are the key performance metrics and testing protocols for these rifles?
The provided data does not specify the key performance metrics or testing protocols. Typically, military rifle procurements involve rigorous testing for reliability, accuracy, durability under various environmental conditions, and safety. The Department of Defense usually has established standards and testing procedures that SIG SAUER Inc. would need to meet for this delivery order.
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: $54,446,278
Exercised Options: $54,446,278
Current Obligation: $54,446,278
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: 2023-11-17
Current End Date: 2025-11-28
Potential End Date: 2025-11-28 12:11:00
Last Modified: 2024-08-22
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