Army Awards $23M for XM7 Rifles to SIG Sauer Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $23,021,163 ($23.0M)
Contractor: SIG Sauer Inc.
Awarding Agency: Department of Defense
Start Date: 2024-04-30
End Date: 2026-01-30
Contract Duration: 640 days
Daily Burn Rate: $36.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR XM 7 RIFLES
Place of Performance
Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801
Plain-Language Summary
Department of Defense obligated $23.0 million to SIG SAUER INC. for work described as: DELIVERY ORDER FOR XM 7 RIFLES Key points: 1. Contract awarded to SIG Sauer Inc. for XM7 rifles. 2. Significant investment in modernizing infantry small arms. 3. Full and open competition suggests potential for competitive pricing. 4. Sector focus on defense manufacturing and ordnance.
Value Assessment
Rating: good
The contract value of $23,021,163 for XM7 rifles appears reasonable given the nature of advanced weapon systems. Benchmarking against similar advanced rifle procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to compete. This method generally promotes price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market forces to achieve competitive pricing for essential defense equipment.
Public Impact
Modernization of soldier's primary weapon system. Potential for improved soldier lethality and effectiveness. Impact on the defense industrial base and supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in advanced weapon development.
- Supply chain disruptions impacting delivery timelines.
- Long-term sustainment and maintenance costs not detailed.
Positive Signals
- Awarded under full and open competition.
- Investment in critical defense modernization.
- Contract awarded to a reputable defense manufacturer.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on small arms manufacturing. Spending in this area is critical for maintaining military readiness and technological superiority, with benchmarks often tied to the complexity and innovation of the weapon system.
Small Business Impact
While the primary awardee is SIG Sauer Inc., the contract's full and open competition nature may create opportunities for small businesses within the supply chain for components or specialized services related to rifle production.
Oversight & Accountability
The Department of the Army's procurement process, including the use of full and open competition, is subject to oversight by various defense agencies and congressional committees to ensure fiscal responsibility and adherence to regulations.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost growth during production.
- Dependency on a single prime contractor for core manufacturing.
- Unknown long-term sustainment costs.
- Integration challenges with existing soldier systems.
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 $23.0 million to SIG SAUER INC.. DELIVERY ORDER FOR XM 7 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 $23.0 million.
What is the period of performance?
Start: 2024-04-30. End: 2026-01-30.
What is the projected per-unit cost of the XM7 rifle, and how does it compare to previous rifle procurement programs?
The provided data does not specify the per-unit cost. However, the total contract value of $23,021,163 for an unspecified quantity of XM7 rifles suggests a significant investment per unit, likely reflecting advanced technology and development costs. A detailed cost breakdown would be needed for a precise comparison to previous programs like the M4 or M16.
What are the specific performance improvements and associated risks with the new XM7 rifle compared to the M4/M16?
The XM7 rifle is designed to offer improved lethality, modularity, and potentially better ergonomics over the M4/M16. Risks include potential teething issues with new technology, integration challenges with existing soldier systems, and the need for extensive training. The specific performance gains and associated risks would be detailed in the system's technical specifications and operational testing reports.
How will the introduction of the XM7 rifle impact the long-term sustainment and training infrastructure for the Army?
The introduction of the XM7 will necessitate significant updates to the Army's training doctrine, range infrastructure, and maintenance procedures. Long-term sustainment will require establishing new supply chains for ammunition and spare parts, potentially involving new partnerships and logistical considerations. This transition represents a substantial commitment to modernizing soldier equipment and requires careful planning to ensure effectiveness and cost-efficiency.
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: $23,021,163
Exercised Options: $23,021,163
Current Obligation: $23,021,163
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: 2024-04-30
Current End Date: 2026-01-30
Potential End Date: 2026-01-30 12:01:00
Last Modified: 2025-01-14
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