DoD Awards $95M Contract to SIG Sauer for Commercially Available Small Arms for Israel
Contract Overview
Contract Amount: $95,245,084 ($95.2M)
Contractor: SIG Sauer Inc.
Awarding Agency: Department of Defense
Start Date: 2025-07-18
End Date: 2026-02-16
Contract Duration: 213 days
Daily Burn Rate: $447.2K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FOREIGN MILITARY SALE (FMS) REQUIREMENTS BETWEEN THE GOVERNMENT AND GOVERNMENT OF ISRAEL FOR THE MANUFACTURING, ASSEMBLING, TESTING, PACKAGING AND DELIVERY OF THE COMMERCIALLY AVAILABLE SIG SAUER PRODUCTS FOR FOREIGN MILITARY SALES (FMS)REQUIREMENTS.
Place of Performance
Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801
Plain-Language Summary
Department of Defense obligated $95.2 million to SIG SAUER INC. for work described as: FOREIGN MILITARY SALE (FMS) REQUIREMENTS BETWEEN THE GOVERNMENT AND GOVERNMENT OF ISRAEL FOR THE MANUFACTURING, ASSEMBLING, TESTING, PACKAGING AND DELIVERY OF THE COMMERCIALLY AVAILABLE SIG SAUER PRODUCTS FOR FOREIGN MILITARY SALES (FMS)REQUIREMENTS. Key points: 1. This contract is for commercially available SIG Sauer products, suggesting potential for leveraging existing commercial pricing. 2. The sole-source nature limits competition, potentially impacting price discovery and overall value. 3. The contract duration of 213 days is relatively short, but the value is substantial. 4. The sector is small arms manufacturing, a niche within the broader defense industry.
Value Assessment
Rating: fair
The contract is firm fixed price, which provides cost certainty. However, without competitive bidding, it's difficult to assess if the price is optimal compared to market rates for similar commercial products.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning no competition was sought. This limits the government's ability to leverage market forces to achieve the best possible price and terms.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures delivery of essential small arms to a key ally. Supports U.S. defense industrial base through foreign military sales. Potential for follow-on procurements based on operational needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of detailed pricing justification.
- Reliance on commercial availability may not reflect true FMS pricing.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Addresses critical foreign military sales requirements.
- Utilizes established commercial products.
Sector Analysis
This contract falls within the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector. Spending in this niche area is driven by defense needs and foreign military sales, with pricing often influenced by specific government requirements and sole-source relationships.
Small Business Impact
The awardee, SIG Sauer Inc., is a large business. There is no indication in the provided data that small businesses will be involved as subcontractors.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for this Foreign Military Sale. Oversight will focus on ensuring timely delivery and adherence to contract specifications.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding.
- Potential for inflated pricing.
- Limited transparency on specific product configurations.
- Dependence on a single supplier.
- Unclear long-term sustainment strategy.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, nh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $95.2 million to SIG SAUER INC.. FOREIGN MILITARY SALE (FMS) REQUIREMENTS BETWEEN THE GOVERNMENT AND GOVERNMENT OF ISRAEL FOR THE MANUFACTURING, ASSEMBLING, TESTING, PACKAGING AND DELIVERY OF THE COMMERCIALLY AVAILABLE SIG SAUER PRODUCTS FOR FOREIGN MILITARY SALES (FMS)REQUIREMENTS.
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 $95.2 million.
What is the period of performance?
Start: 2025-07-18. End: 2026-02-16.
What is the justification for the sole-source award, and were any attempts made to solicit competitive bids?
The provided data states the contract is 'NOT AVAILABLE FOR COMPETITION,' implying a sole-source justification. However, the specific rationale, such as unique capabilities or urgent need, is not detailed. Further inquiry would be needed to understand if alternative procurement strategies were considered or deemed unsuitable for this specific FMS requirement.
How does the firm fixed price compare to benchmarks for similar commercially available small arms procured through competitive means?
Without access to competitive benchmark data for identical or highly similar SIG Sauer products, a direct comparison is challenging. The firm fixed price provides cost certainty for this specific transaction, but its value proposition relative to a competitive market price remains unverified due to the sole-source nature of the award.
What is the long-term strategic value of procuring these specific SIG Sauer products for the government of Israel?
The long-term strategic value lies in equipping a key U.S. ally with reliable small arms, enhancing interoperability and regional security. The choice of SIG Sauer products suggests a preference for their known quality and performance, potentially aligning with Israel's existing military equipment and training infrastructure.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $95,245,084
Exercised Options: $95,245,084
Current Obligation: $95,245,084
Contract Characteristics
Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)
Cost or Pricing Data: YES
Timeline
Start Date: 2025-07-18
Current End Date: 2026-02-16
Potential End Date: 2026-02-16 12:02:00
Last Modified: 2025-12-11
More Contracts from SIG Sauer Inc.
- TO Procure Weapon Deliveries of XM7 and XM250 Rifles — $89.8M (Department of Defense)
- Next Generation Squad Weapon — $77.7M (Department of Defense)
- Delivery Order to Procure XM1188 Reduced Range Carton, XM1186 General Purpose Linked, XM1186 General Purpose Carton, XM1192 Blank Linked, XM1192 Blank Carton, XM1186 General Purpose Clipped and XM1186 General Purpose First Article Test — $76.2M (Department of Defense)
- Delivery Order for Ammunition — $73.5M (Department of Defense)
- Delivery Order for Rifles — $54.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)