Army Awards $89.8M for XM7/XM250 Rifles to Sig Sauer Under Full and Open Competition
Contract Overview
Contract Amount: $89,775,907 ($89.8M)
Contractor: SIG Sauer Inc.
Awarding Agency: Department of Defense
Start Date: 2025-03-27
End Date: 2026-07-31
Contract Duration: 491 days
Daily Burn Rate: $182.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TO PROCURE WEAPON DELIVERIES OF XM7 AND XM250 RIFLES
Place of Performance
Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801
Plain-Language Summary
Department of Defense obligated $89.8 million to SIG SAUER INC. for work described as: TO PROCURE WEAPON DELIVERIES OF XM7 AND XM250 RIFLES Key points: 1. Significant investment in next-generation infantry weapons. 2. Sole awardee, Sig Sauer, indicates potential concentration. 3. Firm Fixed Price contract provides cost certainty. 4. Delivery order structure suggests phased procurement.
Value Assessment
Rating: good
The $89.8 million award for XM7 and XM250 rifles appears reasonable given the nature of advanced weapon systems. Benchmarking against similar advanced firearms procurement is difficult due to proprietary technology and specialized requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to drive price discovery and ensure fair market value.
Taxpayer Impact: The competitive award aims to secure advanced weaponry at a fair price, maximizing the value of taxpayer funds for national defense.
Public Impact
Modernization of infantry capabilities with advanced rifle systems. Potential for improved soldier performance and survivability. Impact on the defense industrial base and supply chains.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee concentration risk.
- Long-term sustainment and spare parts costs.
Positive Signals
- Procurement of advanced, next-generation weapon systems.
- Firm Fixed Price contract for cost control.
Sector Analysis
This procurement falls within the defense sector, specifically focusing on small arms and ordnance. Spending in this area is driven by modernization needs and geopolitical factors, with benchmarks often tied to technological advancements and unit costs of comparable systems.
Small Business Impact
While the prime contractor is Sig Sauer Inc., the contract was awarded under full and open competition. The extent of small business participation as subcontractors is not detailed in this award notice but is a common requirement in defense contracts.
Oversight & Accountability
The Department of the Army is the procuring agency, with the Department of Defense overseeing broader defense spending. Oversight mechanisms would typically include contract management, performance monitoring, and audits to ensure compliance and value.
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 dependency on Sig Sauer for future variants or upgrades.
- Long-term sustainment costs and availability of spare parts.
- Integration challenges with existing soldier equipment and training.
- Geopolitical factors influencing supply chain stability.
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 $89.8 million to SIG SAUER INC.. TO PROCURE WEAPON DELIVERIES OF XM7 AND XM250 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 $89.8 million.
What is the period of performance?
Start: 2025-03-27. End: 2026-07-31.
What is the projected lifecycle cost of these new rifle systems, including sustainment and ammunition?
The current award covers the procurement of the weapon deliveries. A comprehensive lifecycle cost analysis would need to account for long-term sustainment, maintenance, spare parts, training, and ammunition. These additional costs are critical for a complete understanding of the total investment and should be evaluated in subsequent contract actions or program reviews.
How does the unit cost of the XM7 and XM250 compare to previous rifle procurements or similar international systems?
Direct unit cost comparisons are challenging due to the advanced technology and specific requirements of the XM7 and XM250. While the contract was competitively awarded, the novelty of these systems means historical benchmarks may not be directly applicable. Further analysis of the awarded prices against estimated costs for comparable, albeit less advanced, systems would be beneficial.
What are the key performance advantages of the XM7 and XM250 that justify this investment over upgrading existing platforms?
The XM7 and XM250 are designed to offer significant advancements in lethality, modularity, and soldier interface compared to legacy systems. Key advantages likely include improved accuracy, reduced weight, enhanced ergonomics, and integration with future soldier systems. These benefits are intended to provide a decisive edge in combat effectiveness.
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: $89,775,907
Exercised Options: $89,775,907
Current Obligation: $89,775,907
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: 2025-03-27
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-03-27
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