Department of the Army awards $42.4M contract for XM1188 Reduced Range Cartons to SIG Sauer Inc

Contract Overview

Contract Amount: $42,372,514 ($42.4M)

Contractor: SIG Sauer Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-18

End Date: 2026-12-31

Contract Duration: 469 days

Daily Burn Rate: $90.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER TO PROCURE XM1188 REDUCED RANGE CARTON.

Place of Performance

Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801

State: New Hampshire Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to SIG SAUER INC. for work described as: DELIVERY ORDER TO PROCURE XM1188 REDUCED RANGE CARTON. Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract duration of 469 days indicates a medium-term supply need. 3. SIG Sauer Inc. is a known entity in the small arms manufacturing sector. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. This award falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' industry. 6. The contract's value is substantial within its specific product category.

Value Assessment

Rating: good

The contract value of $42.4 million for XM1188 Reduced Range Cartons appears reasonable given the product type and the contractor's specialization. Benchmarking against similar ordnance procurements is challenging without more specific product details, but the firm-fixed-price structure suggests the government secured a defined cost. The award amount is within the expected range for specialized ammunition components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. This suggests a robust competitive process was undertaken, which typically leads to better price discovery and value for the government. The number of bidders is not specified, but the method of competition implies multiple interested parties participated.

Taxpayer Impact: A full and open competition process generally benefits taxpayers by driving down prices through market forces, ensuring the government receives the best possible value for its investment in these specialized munitions.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential components for training and operational readiness. The contract delivers specialized ammunition components (XM1188 Reduced Range Cartons) critical for small arms training. The geographic impact is primarily within the United States, where the contractor operates and potentially where the items will be utilized. Workforce implications include potential employment at SIG Sauer Inc. and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if SIG Sauer Inc. faces production issues.
Dependence on a single contractor for a specific component could pose a long-term risk if alternatives are not developed.

Positive Signals

Award to an established manufacturer with a track record in firearms and ordnance.
Firm-fixed-price contract limits cost overruns for the government.
Competition ensures a market-driven price for the procured items.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on small arms and ordnance. The market for such specialized ammunition components is driven by military demand and stringent quality requirements. Comparable spending benchmarks are difficult to ascertain without detailed specifications, but the value reflects the niche nature and manufacturing complexity of the product.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While SIG Sauer Inc. is a large business, there is no information provided on subcontracting plans for small businesses. The impact on the small business ecosystem is therefore neutral to potentially negative if small businesses are not involved in the supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified goods. Transparency is facilitated by the contract award notice, though detailed performance metrics are not publicly available.

Related Government Programs

Small Arms Ammunition Procurement
Department of Defense Ordnance Contracts
Military Training Equipment
SIG Sauer Product Lines

Risk Flags

Potential for supply chain disruption
Dependence on a single source for specialized component

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to SIG SAUER INC.. DELIVERY ORDER TO PROCURE XM1188 REDUCED RANGE CARTON.

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 $42.4 million.

What is the period of performance?

Start: 2025-09-18. End: 2026-12-31.

What is the specific function and advantage of the XM1188 Reduced Range Carton compared to standard ammunition?

The XM1188 Reduced Range Carton is designed for training purposes, allowing soldiers to practice with their service weapons in controlled environments where full-range ammunition would be unsafe or impractical. These cartridges typically fire a projectile at a lower velocity and shorter range, reducing the safety footprint required for training ranges. This enhances training realism and efficiency by enabling live-fire exercises in more confined or urban-simulated areas. The 'Reduced Range' designation implies specific design modifications to limit the projectile's travel distance and energy, making it suitable for close-quarters battle (CQB) training or indoor ranges.

How does the $42.4 million contract value compare to historical spending on similar ordnance items by the Department of the Army?

Comparing the $42.4 million contract value for XM1188 Reduced Range Cartons to historical spending requires access to detailed procurement data for similar specialized training ammunition. Without specific historical data points for this exact item or its direct predecessors, a precise comparison is difficult. However, the value suggests a significant procurement quantity or a high unit cost due to specialized manufacturing. The Department of the Army procures a vast array of ordnance, and this amount represents a mid-tier investment within the broader category of small arms ammunition and training aids. It is plausible that similar procurements for specialized training munitions could range from several million to tens of millions of dollars, depending on quantity, complexity, and market conditions at the time of award.

What are the key performance indicators (KPIs) that the Department of the Army will use to evaluate SIG Sauer Inc.'s performance under this contract?

Key performance indicators for this contract would likely focus on several critical areas to ensure successful delivery and value. These would include on-time delivery of the XM1188 Reduced Range Cartons according to the schedule outlined in the contract (ending December 31, 2026). Quality assurance would be paramount, measured by defect rates, adherence to specifications (e.g., projectile performance, casing integrity, lot consistency), and successful testing results. Furthermore, compliance with contractual terms, including reporting requirements and any specified safety protocols during manufacturing and delivery, would be monitored. While not explicitly stated in the award notice, the government may also track the contractor's responsiveness to any queries or issues that arise during the contract period.

What is SIG Sauer Inc.'s track record with the Department of the Army, particularly concerning ordnance and ammunition supply?

SIG Sauer Inc. has a well-established track record with the Department of Defense, including the Department of the Army, primarily as a manufacturer of firearms and related accessories. They are known for producing service pistols (like the M17/M18 variants) and rifles. While their primary public recognition is for complete weapon systems, their capabilities often extend to ammunition components or specialized rounds. This contract for XM1188 Reduced Range Cartons suggests a continued or expanded role in supplying ammunition-related products to the Army. Their history with the DoD indicates a capacity to meet stringent military specifications and manage large-scale production contracts, although specific past performance on ammunition components versus complete weapon systems would require deeper analysis of contract databases.

Are there any identified risks associated with relying on SIG Sauer Inc. for this specific type of ammunition component?

Potential risks associated with relying on SIG Sauer Inc. for the XM1188 Reduced Range Cartons include standard supply chain vulnerabilities, such as potential delays due to raw material shortages, manufacturing issues, or unforeseen global events impacting production. Given that this is a specific component, there's also a risk of over-reliance on a single supplier if alternative sources or competing products are not readily available or qualified. The firm-fixed-price nature, while beneficial for cost control, could incentivize the contractor to cut corners on quality if not rigorously monitored, though SIG Sauer's reputation suggests this is less likely. Finally, any shifts in military requirements or budget priorities could impact the long-term demand for this specific training ammunition.

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: $42,372,514

Exercised Options: $42,372,514

Current Obligation: $42,372,514

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