DoD Awards $59.4M for Modular Artillery Charge System Production to American Ordnance LLC
Contract Overview
Contract Amount: $59,398,122 ($59.4M)
Contractor: American Ordnance LLC
Awarding Agency: Department of Defense
Start Date: 2025-09-04
End Date: 2029-03-31
Contract Duration: 1,304 days
Daily Burn Rate: $45.6K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FMS CAR: THE PURPOSE OF DO W15QKN25F0383 IS TO FUND THE MANUFACTURE, PRODUCTION, AND DELIVERY OF THE MODULAR ARTILLERY CHARGE SYSTEM (MACS) LOAD, ASSEMBLE, AND PACK (LAP) FOR THE M232A2 PROPELLING CHARGES.
Place of Performance
Location: MIDDLETOWN, DES MOINES County, IOWA, 52638
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $59.4 million to AMERICAN ORDNANCE LLC for work described as: FMS CAR: THE PURPOSE OF DO W15QKN25F0383 IS TO FUND THE MANUFACTURE, PRODUCTION, AND DELIVERY OF THE MODULAR ARTILLERY CHARGE SYSTEM (MACS) LOAD, ASSEMBLE, AND PACK (LAP) FOR THE M232A2 PROPELLING CHARGES. Key points: 1. Significant investment in critical munitions manufacturing. 2. Competition method suggests potential for price discovery. 3. Risk of supply chain disruption for essential defense components. 4. Sector focus on ammunition manufacturing, a key defense industry.
Value Assessment
Rating: good
The contract value of $59.4 million for the MACS LAP appears reasonable given the scope of manufacturing and delivery over a multi-year period. Benchmarking against similar munitions contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact the extent of price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used to enhance the production of essential artillery components, supporting national defense capabilities.
Public Impact
Ensures continued availability of critical artillery ammunition for military operations. Supports domestic manufacturing capabilities within the defense industrial base. Potential for job creation and economic activity in the ammunition manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the lowest possible price.
- Reliance on a single contractor for a critical component.
- Potential for production delays impacting readiness.
Positive Signals
- Secures production of essential munitions.
- Long-term contract provides stability for the manufacturer.
- Clear delivery schedule outlined.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks in this area are highly dependent on the specific munition type, quantity, and technological complexity.
Small Business Impact
The contract was awarded to American Ordnance LLC, a large business. There is no indication of small business subcontracting in the provided data, suggesting limited direct impact on small businesses for this specific award.
Oversight & Accountability
The Department of Defense is responsible for oversight of this contract. The 'IA' (Iowa) designation suggests a specific contracting office or activity, implying established oversight mechanisms.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher prices.
- Potential for supply chain vulnerabilities.
- Contract duration extends over several years, increasing exposure to market fluctuations.
- Dependence on a single manufacturer for a critical component.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.4 million to AMERICAN ORDNANCE LLC. FMS CAR: THE PURPOSE OF DO W15QKN25F0383 IS TO FUND THE MANUFACTURE, PRODUCTION, AND DELIVERY OF THE MODULAR ARTILLERY CHARGE SYSTEM (MACS) LOAD, ASSEMBLE, AND PACK (LAP) FOR THE M232A2 PROPELLING CHARGES.
Who is the contractor on this award?
The obligated recipient is AMERICAN ORDNANCE LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $59.4 million.
What is the period of performance?
Start: 2025-09-04. End: 2029-03-31.
What is the historical cost performance of American Ordnance LLC on similar contracts?
Analyzing the historical cost performance of American Ordnance LLC on comparable contracts is crucial for assessing the value proposition of this award. Past performance data can reveal trends in cost overruns or savings, efficiency in production, and adherence to budget. This information would help determine if the current $59.4 million award represents a fair and competitive price, or if there are opportunities for cost reduction in future procurements.
What are the specific risks associated with the 'exclusion of sources' in the competition?
The 'exclusion of sources' in the competition raises concerns about whether the government received the most competitive pricing possible. Understanding the rationale behind excluding other potential bidders is vital. If the exclusion was due to proprietary technology or unique capabilities, the limited competition might be justified. However, if it restricts the field unnecessarily, it could lead to higher costs for taxpayers and reduced innovation.
How does the production timeline align with current and projected military needs?
The contract's delivery schedule, ending in March 2029, needs to be evaluated against current and projected military operational tempos and munition requirements. A misalignment could result in either stockpiling excess inventory, incurring storage costs, or facing shortages if demand outpaces production. Ensuring the production timeline directly supports strategic readiness and avoids obsolescence is key to the effectiveness of this spending.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: DAY & Zimmermann Group Inc., the
Address: 17575 HIGHWAY 79, MIDDLETOWN, IA, 52638
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $59,398,122
Exercised Options: $59,398,122
Current Obligation: $59,398,122
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN19D0109
IDV Type: IDC
Timeline
Start Date: 2025-09-04
Current End Date: 2029-03-31
Potential End Date: 2029-03-31 12:03:00
Last Modified: 2025-09-04
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