Army Awards $77.7M for Next Generation Squad Weapon to SIG Sauer Inc
Contract Overview
Contract Amount: $77,693,395 ($77.7M)
Contractor: SIG Sauer Inc.
Awarding Agency: Department of Defense
Start Date: 2025-12-19
End Date: 2027-09-30
Contract Duration: 650 days
Daily Burn Rate: $119.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: NEXT GENERATION SQUAD WEAPON
Place of Performance
Location: NEWINGTON, ROCKINGHAM County, NEW HAMPSHIRE, 03801
Plain-Language Summary
Department of Defense obligated $77.7 million to SIG SAUER INC. for work described as: NEXT GENERATION SQUAD WEAPON Key points: 1. The Department of the Army is investing $77.7 million in the Next Generation Squad Weapon. 2. SIG Sauer Inc. is the sole awardee for this contract. 3. The contract aims to modernize infantry capabilities. 4. This award represents a significant investment in small arms technology.
Value Assessment
Rating: good
The award amount of $77.7 million for the Next Generation Squad Weapon appears reasonable given the scope of modernizing infantry firearms. Benchmarking against similar advanced weapon system development contracts would provide further context, but the firm fixed price structure suggests a degree of cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive favorable pricing and innovation for the Next Generation Squad Weapon.
Taxpayer Impact: Taxpayer funds are being used to equip soldiers with advanced weaponry, aiming for improved combat effectiveness and soldier survivability.
Public Impact
Enhances soldier lethality and effectiveness on the battlefield. Represents a significant technological advancement in personal defense weapons. Potential for widespread adoption across military branches. Supports domestic manufacturing and defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in future phases if not managed closely.
- Dependence on a single supplier for critical weapon systems.
Positive Signals
- Modernization of essential soldier equipment.
- Investment in advanced defense technology.
- Competitive award process.
Sector Analysis
The defense sector, particularly small arms manufacturing, is characterized by high R&D costs and stringent performance requirements. This contract aligns with the Department of Defense's ongoing efforts to maintain technological superiority.
Small Business Impact
While SIG Sauer Inc. is the prime contractor, the contract's execution may involve subcontracting opportunities for small businesses in the defense supply chain, particularly in areas like component manufacturing and specialized services.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract, ensuring timely delivery, adherence to specifications, and responsible use of taxpayer funds. Regular performance reviews and milestone tracking are crucial.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep in future contract modifications.
- Long-term sustainment costs may exceed initial projections.
- Dependence on a single source for critical weapon components.
- Integration challenges with existing soldier systems.
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 $77.7 million to SIG SAUER INC.. NEXT GENERATION SQUAD WEAPON
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 $77.7 million.
What is the period of performance?
Start: 2025-12-19. End: 2027-09-30.
What is the projected lifecycle cost of the Next Generation Squad Weapon program, including sustainment and ammunition?
The current award of $77.7 million covers the initial phase of the Next Generation Squad Weapon program. A comprehensive lifecycle cost analysis, encompassing long-term sustainment, training, and ammunition procurement, is essential for a complete understanding of the program's financial commitment. This information is typically developed as the program matures and further contract actions are planned.
How will the performance of the Next Generation Squad Weapon be validated against current and future threats?
Performance validation will involve rigorous testing and evaluation protocols established by the Department of the Army. This includes live-fire exercises, environmental testing, and soldier feedback to ensure the weapon meets or exceeds requirements for lethality, accuracy, reliability, and ergonomics against evolving battlefield threats. Continuous assessment will inform potential upgrades.
What are the key performance metrics that will determine the success of this contract award?
Key performance metrics will likely include on-time delivery of weapon systems, adherence to technical specifications and quality standards, and successful integration into soldier training and operational use. Cost control within the awarded budget and positive feedback from end-users regarding weapon performance and reliability will also be critical indicators of success.
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: $77,693,395
Exercised Options: $77,693,395
Current Obligation: $77,693,395
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: 2025-12-19
Current End Date: 2027-09-30
Potential End Date: 2027-09-30 12:09:00
Last Modified: 2025-12-19
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