DoD Awards $76M for Ammunition to SIG Sauer Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $76,218,673 ($76.2M)
Contractor: SIG Sauer Inc.
Awarding Agency: Department of Defense
Start Date: 2025-06-26
End Date: 2026-12-31
Contract Duration: 553 days
Daily Burn Rate: $137.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 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.
Place of Performance
Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801
Plain-Language Summary
Department of Defense obligated $76.2 million to SIG SAUER INC. for work described as: 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. Key points: 1. Significant award for small arms ammunition, indicating ongoing demand. 2. SIG Sauer Inc. is a major player in the firearms and ammunition market. 3. Risk is moderate, tied to supply chain and potential price fluctuations. 4. Spending falls within the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector.
Value Assessment
Rating: good
The contract value of $76.2M for a 1.5-year duration appears reasonable for specialized ammunition. Benchmarking against similar large-scale ammunition procurements would provide further context on value.
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 that likely drove price discovery and secured a fair market price.
Taxpayer Impact: Taxpayer funds are being used to procure essential munitions, supporting military readiness.
Public Impact
Ensures continued supply of critical ammunition for U.S. Army operations. Supports domestic manufacturing capabilities within the defense industrial base. Potential for follow-on contracts based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Supply chain disruptions impacting raw material availability.
- Potential for cost overruns due to inflation or unforeseen production issues.
- Dependence on a single supplier for this specific order.
Positive Signals
- Awarded under full and open competition.
- SIG Sauer Inc. has a proven track record.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This procurement falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector. Spending in this area is critical for national defense and can fluctuate based on geopolitical events and military modernization efforts.
Small Business Impact
While the prime contractor is SIG Sauer Inc., a large corporation, the contract's execution may involve subcontracting opportunities for smaller businesses within the defense supply chain, particularly for components or specialized services.
Oversight & Accountability
The Department of the Army's contracting process, including full and open competition, provides a degree of oversight. Further accountability would stem from performance monitoring and adherence to the firm fixed price terms.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Supply chain vulnerability for critical raw materials.
- Potential for price increases due to market fluctuations.
- Dependence on a single manufacturer for this specific order.
- Long-term strategic sourcing implications for ammunition.
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 $76.2 million to SIG SAUER INC.. 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.
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 $76.2 million.
What is the period of performance?
Start: 2025-06-26. End: 2026-12-31.
What is the historical pricing trend for similar ammunition types procured by the DoD?
Analyzing historical pricing data for comparable ammunition types is crucial for a comprehensive value assessment. This includes examining trends in unit costs over time, considering factors like inflation, bulk discounts, and changes in manufacturing processes. Without this historical context, it's challenging to definitively state if the current $76.2M award represents an optimal price point or if there's potential for 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 supply chain for ammunition components often involve the availability and price volatility of key raw materials like propellants, primers, and metals. Geopolitical instability, trade restrictions, and increased global demand can all disrupt supply and drive up costs. The DoD must have robust contingency plans and potentially diversify suppliers to mitigate these risks and ensure consistent production.
How does the performance of SIG Sauer Inc. on previous contracts compare to the requirements of this new delivery order?
Evaluating SIG Sauer Inc.'s past performance is essential for assessing the effectiveness of this contract. This involves reviewing their track record on similar ammunition contracts, focusing on on-time delivery, quality control, and adherence to specifications. A history of strong performance suggests a lower risk of execution issues and a higher likelihood of meeting the military's operational needs effectively.
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: $76,218,673
Exercised Options: $76,218,673
Current Obligation: $76,218,673
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: 2025-06-26
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 12:12:00
Last Modified: 2025-09-17
More Contracts from 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 — $95.2M (Department of Defense)
- 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 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)