DoD awards $22M for 5.56mm Frangible Ammunition to The Kinetic Group Sales LLC

Contract Overview

Contract Amount: $22,041,267 ($22.0M)

Contractor: THE Kinetic Group Sales LLC

Awarding Agency: Department of Defense

Start Date: 2024-07-29

End Date: 2027-09-30

Contract Duration: 1,158 days

Daily Burn Rate: $19.0K/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

State: Minnesota Government Spending

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 method: Full and Open. 3. Contract type: Firm Fixed Price. 4. Potential for price fluctuations based on market conditions.

Value Assessment

Rating: good

The award amount of $22M for ammunition appears reasonable given the duration and scope. Benchmarking against similar large-scale ammunition contracts 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.

Taxpayer Impact: Competitive bidding is expected to yield fair market value, minimizing unnecessary taxpayer expense for essential munitions.

Public Impact

Ensures supply of critical ammunition for training and operations. Supports Department of the Army readiness. Potential impact on small arms ammunition market dynamics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases due to raw material costs.
Dependence on a single supplier for this specific munition type.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically small arms ammunition. Spending in this area is critical for national security and military readiness.

Small Business Impact

The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were subcontractors or if opportunities were missed.

Oversight & Accountability

The award is a delivery order under a larger contract, implying prior oversight. Continued monitoring of performance and pricing is essential.

Related Government Programs

Small Arms Ammunition Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Price volatility of raw materials.
Supplier performance risk.
Long-term supply chain stability.
Potential for sole-source follow-on contracts if competition is limited.

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: 2024-07-29. End: 2027-09-30.

What is the historical pricing trend for this specific type of ammunition?

Historical pricing data for the 5.56mm Semi-Jacketed Frangible Cartridge, MK311 Mod 3 (AA40) is crucial for assessing the current award's value. Analyzing past contracts, including any fluctuations in raw material costs or production efficiencies, will help determine if this $22M award represents a fair market price over its multi-year duration.

What are the risks associated with relying on The Kinetic Group Sales LLC for this critical munition?

Risks include potential supply chain disruptions, quality control issues, or future price increases if market conditions change unfavorably. Dependence on a single supplier, even if competitively selected, can create vulnerabilities. The government should monitor supplier performance and explore alternative sources or contingency plans.

How effectively does this contract support the Department of the Army's operational readiness?

This contract directly supports operational readiness by ensuring a consistent supply of essential ammunition for training and deployment. The firm fixed price and multi-year duration suggest a commitment to sustained availability. However, actual effectiveness depends on timely delivery, adherence to specifications, and integration into logistical chains.

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: $22,041,267

Exercised Options: $22,041,267

Current Obligation: $22,041,267

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