Army Awards $73.5M Ammunition Delivery Order to Sig Sauer Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $73,532,626 ($73.5M)
Contractor: SIG Sauer Inc.
Awarding Agency: Department of Defense
Start Date: 2024-05-31
End Date: 2026-03-30
Contract Duration: 668 days
Daily Burn Rate: $110.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR AMMUNITION.
Place of Performance
Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801
Plain-Language Summary
Department of Defense obligated $73.5 million to SIG SAUER INC. for work described as: DELIVERY ORDER FOR AMMUNITION. Key points: 1. Significant award for small arms and ordnance manufacturing. 2. Sig Sauer Inc. is a major player in the firearms industry. 3. Potential for price fluctuations in ammunition markets. 4. Defense sector spending on munitions is substantial.
Value Assessment
Rating: good
The award amount of $73.5M for ammunition is substantial. Benchmarking against similar large-scale ammunition contracts would be necessary for a precise value assessment, but the firm fixed price suggests a defined cost structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive nature of this award suggests taxpayers are likely benefiting from a well-priced contract for essential defense supplies.
Public Impact
Ensures continued supply of critical ammunition for U.S. Army operations. Supports a key defense contractor, potentially impacting jobs and industry stability. Highlights the ongoing demand for small arms and ordnance in military readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions affecting ammunition availability.
- Price volatility in raw materials for ammunition production.
- Geopolitical events could increase demand and impact pricing.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Firm fixed price contract provides cost certainty.
- Long-term delivery schedule allows for phased production and delivery.
Sector Analysis
This award falls within the defense sector, specifically the manufacturing of small arms and ordnance. Defense spending on ammunition is a critical component of military readiness and can fluctuate based on global security environments and operational tempo.
Small Business Impact
While Sig Sauer Inc. is a large corporation, the contract's nature could indirectly benefit smaller businesses within the defense supply chain that provide components or services to the prime contractor.
Oversight & Accountability
The award was made under full and open competition, implying a structured procurement process. Oversight will be crucial to ensure timely delivery and adherence to quality standards throughout the contract duration.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Dependence on specific raw material suppliers.
- Potential for price increases in future contract renewals.
- Geopolitical events impacting global ammunition demand.
- Supply chain vulnerabilities due to single-source 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 $73.5 million to SIG SAUER INC.. DELIVERY ORDER FOR AMMUNITION.
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 $73.5 million.
What is the period of performance?
Start: 2024-05-31. End: 2026-03-30.
What is the historical pricing trend for similar ammunition types from Sig Sauer Inc. or competitors?
Analyzing historical pricing data for comparable ammunition types from Sig Sauer Inc. and other manufacturers is crucial. This would involve examining past contract awards, market analyses, and any available cost breakdowns to establish a baseline. Understanding these trends helps determine if the current $73.5M award represents a fair market price or if there are opportunities for further cost savings in future procurements.
What are the specific risks associated with the supply chain for the raw materials required for this ammunition?
The primary risks in the ammunition supply chain often revolve around the availability and cost of key raw materials like propellants, metals (brass, lead, steel), and primers. Geopolitical instability, trade restrictions, or increased global demand can lead to shortages and price spikes. The Department of Defense must monitor these factors closely and potentially diversify sourcing or maintain strategic reserves to mitigate these risks.
How effectively does this contract contribute to the Army's long-term ammunition readiness goals?
This $73.5M delivery order contributes to the Army's ammunition readiness by securing a significant supply of small arms and ordnance. The firm fixed price and 668-day duration suggest a planned procurement that aligns with operational needs. However, its long-term effectiveness depends on how well it integrates with broader ammunition stock levels, future procurement strategies, and the evolving threat landscape.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories 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
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: $73,532,626
Exercised Options: $73,532,626
Current Obligation: $73,532,626
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: 2024-05-31
Current End Date: 2026-03-30
Potential End Date: 2026-03-30 12:03:00
Last Modified: 2024-07-16
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