DoD awards $30.8M contract for 14 extrudable C-4 line items to American Ordnance LLC
Contract Overview
Contract Amount: $30,793,266 ($30.8M)
Contractor: American Ordnance LLC
Awarding Agency: Department of Defense
Start Date: 2023-09-12
End Date: 2027-03-31
Contract Duration: 1,296 days
Daily Burn Rate: $23.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CONTRACT W52P1J-21-D-0035 - FIVE-YEAR (5), FIRM FIXED PRICE REQUIREMENTS CONTRACT TO FACILITATE THE ACQUISITION OF FOURTEEN (14) EXTRUDABLE C-4 LINE ITEMS AS QUANTITIES MATERIALIZE.
Place of Performance
Location: MIDDLETOWN, DES MOINES County, IOWA, 52638
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $30.8 million to AMERICAN ORDNANCE LLC for work described as: CONTRACT W52P1J-21-D-0035 - FIVE-YEAR (5), FIRM FIXED PRICE REQUIREMENTS CONTRACT TO FACILITATE THE ACQUISITION OF FOURTEEN (14) EXTRUDABLE C-4 LINE ITEMS AS QUANTITIES MATERIALIZE. Key points: 1. Contract awarded to American Ordnance LLC for $30.8 million. 2. Focuses on acquiring 14 extrudable C-4 line items. 3. Contract type is Firm Fixed Price Requirements. 4. Competition was full and open. 5. Sector is Ammunition Manufacturing.
Value Assessment
Rating: good
The contract value of $30.8 million over approximately 5 years appears reasonable for specialized ordnance manufacturing. Benchmarking against similar firm-fixed-price requirements contracts for explosive materials would provide a more precise assessment.
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 yield fair pricing and access to the best available sources for these specialized munitions.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment for acquiring critical defense materials.
Public Impact
Ensures supply of critical C-4 explosives for defense operations. Supports domestic manufacturing capabilities for munitions. Contract duration of approximately 5 years provides supply chain stability.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for quantity fluctuations impacting total spend.
- Reliance on a single supplier for specific C-4 line items.
Positive Signals
- Firm Fixed Price structure limits cost overrun risk.
- Full and open competition promotes value.
- Clear definition of goods (14 extrudable C-4 line items).
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending in this sector is directly tied to national security needs and geopolitical factors.
Small Business Impact
The data indicates this contract was awarded to American Ordnance LLC, a large business. There is no explicit indication of small business participation or subcontracting goals within the provided information.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for defense contracts, including performance monitoring and financial audits, are expected to be in place.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for quantity fluctuations impacting total spend.
- Reliance on a single supplier for specific C-4 line items.
- Contract is for a sensitive and potentially hazardous material.
- No explicit small business participation noted.
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 $30.8 million to AMERICAN ORDNANCE LLC. CONTRACT W52P1J-21-D-0035 - FIVE-YEAR (5), FIRM FIXED PRICE REQUIREMENTS CONTRACT TO FACILITATE THE ACQUISITION OF FOURTEEN (14) EXTRUDABLE C-4 LINE ITEMS AS QUANTITIES MATERIALIZE.
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 $30.8 million.
What is the period of performance?
Start: 2023-09-12. End: 2027-03-31.
What is the estimated annual spend based on the total contract value and duration?
The total contract value is $30,793,266.41 over a duration of 1296 days (approximately 3.55 years from the start date of 2023-09-12 to the end date of 2027-03-31). This averages to approximately $8.67 million per year. However, as a requirements contract, actual spending will depend on the quantities materialized by the government.
What are the primary risks associated with a firm-fixed-price requirements contract for explosives?
Key risks include potential over-reliance on a single supplier if competition is limited in practice, and the government's commitment to purchase quantities as they materialize, which could lead to unexpected demand spikes or underutilization if needs change. Ensuring quality control and safety protocols for explosives is also paramount.
How does the 'full and open competition' method impact the effectiveness of this contract?
Full and open competition is intended to maximize effectiveness by ensuring the government receives the best value through a competitive process. It allows multiple qualified vendors to bid, driving innovation and potentially lower prices. This method increases the likelihood that the chosen supplier can meet the specific technical requirements for extrudable C-4.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $30,793,266
Exercised Options: $30,793,266
Current Obligation: $30,793,266
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J21D0035
IDV Type: IDC
Timeline
Start Date: 2023-09-12
Current End Date: 2027-03-31
Potential End Date: 2027-03-31 12:03:00
Last Modified: 2025-11-20
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