Colt Defense awarded $16.6M contract for M16A4 rifles, highlighting a specific need within the Army's small arms procurement

Contract Overview

Contract Amount: $16,631,569 ($16.6M)

Contractor: Colt Defense LLC

Awarding Agency: Department of Defense

Start Date: 2007-03-30

End Date: 2008-06-28

Contract Duration: 456 days

Daily Burn Rate: $36.5K/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: M16A4 RIFLES

Place of Performance

Location: HARTFORD, HARTFORD County, CONNECTICUT, 06141

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to COLT DEFENSE LLC for work described as: M16A4 RIFLES Key points: 1. The contract value of $16.6 million for M16A4 rifles suggests a significant, albeit specific, demand for this particular weapon system. 2. The procurement method, 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicates a competitive process was initiated but may have had specific criteria limiting initial bidders. 3. The fixed-price contract type aims to provide cost certainty for the government, shifting performance risk to the contractor. 4. The relatively short duration of 456 days points to a focused production run rather than a long-term sustainment contract. 5. The award to Colt Defense LLC, a known firearms manufacturer, aligns with industry expertise for this type of defense procurement. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this specific M16A4 rifle contract is challenging without detailed cost breakdowns or comparisons to similar recent procurements of the same model. However, the $16.6 million award for an unspecified quantity of rifles implies a per-unit cost that would need to be assessed against production efficiency and material costs. Given the age of the M16A4 platform, the pricing would also be influenced by current manufacturing capabilities and any legacy tooling or processes involved. The fixed-price nature of the contract provides a degree of cost control for the government, but the overall value proposition depends heavily on the quantity and quality of rifles delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This designation suggests that while the competition was intended to be open, certain sources may have been excluded initially, possibly due to specific technical requirements, security clearances, or other pre-qualification criteria. The fact that it was still designated as 'full and open' implies that after any initial exclusions, the remaining field was competed broadly. The number of bidders (2) is relatively low for a full and open competition, which could indicate a specialized market or high barriers to entry for potential competitors.

Taxpayer Impact: A low number of bidders in a 'full and open' competition can sometimes lead to less aggressive pricing as the contractor faces reduced pressure from rivals. However, the fixed-price nature of this contract helps mitigate some of that risk for taxpayers.

Public Impact

The primary beneficiaries are the U.S. Army personnel who will be equipped with M16A4 rifles, enhancing their combat readiness. The contract delivers essential small arms, a critical component for infantry and other combat roles. The geographic impact is primarily within the United States, where Colt Defense LLC is located and likely where manufacturing and assembly will occur. The contract supports jobs within the defense manufacturing sector, specifically at Colt Defense LLC and its supply chain partners.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to specialized nature of firearm manufacturing.
Risk of price escalation if raw material costs increase significantly during the contract period, despite fixed-price terms.
Dependence on a single contractor (Colt Defense LLC) for this specific rifle model could pose supply chain risks if issues arise.

Positive Signals

Award to an established defense contractor with a known track record in firearms production.
Fixed-price contract provides cost certainty for the government.
The 'full and open' competition, even with limited bidders, suggests an attempt to leverage market forces.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on small arms manufacturing. The market for military firearms is characterized by stringent quality and performance requirements, long development cycles, and significant government oversight. Spending in this area is driven by military readiness needs, modernization programs, and the replacement of aging equipment. Comparable spending benchmarks would typically involve other large-scale firearms procurement contracts for military-grade weapons, often awarded through competitive bidding processes.

Small Business Impact

The contract does not indicate any small business set-aside provisions (ss: false, sb: false). This suggests that the procurement was not specifically designed to award a portion of the work to small businesses. Consequently, the primary impact on the small business ecosystem would be indirect, through potential subcontracting opportunities if Colt Defense LLC chooses to engage small businesses in its supply chain. However, without specific subcontracting plans mandated by the contract, the extent of this impact remains uncertain.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified goods. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

U.S. Army Small Arms Procurement
Department of Defense Weapon Systems Contracts
Firearms Manufacturing Contracts
M16 Rifle Family Procurement

Risk Flags

Limited Competition Indication
Potential Supply Chain Vulnerabilities
Mature Weapon System Procurement

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to COLT DEFENSE LLC. M16A4 RIFLES

Who is the contractor on this award?

The obligated recipient is COLT DEFENSE 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 $16.6 million.

What is the period of performance?

Start: 2007-03-30. End: 2008-06-28.

What is the specific quantity of M16A4 rifles procured under this contract?

The provided data does not explicitly state the quantity of M16A4 rifles procured under this contract. The total award amount is $16,631,569.12. To determine the quantity, one would need the per-unit cost or the total number of units. Without this information, it is impossible to calculate the exact number of rifles purchased. This is a common data gap in publicly available contract award summaries, where the focus is on the total value rather than the specific deliverables breakdown.

How does the per-unit cost of these M16A4 rifles compare to historical or market rates?

Calculating the precise per-unit cost is not possible without knowing the quantity of rifles procured. If, for example, 10,000 rifles were purchased, the cost per rifle would be approximately $1,663. If 20,000 rifles were purchased, the cost would be around $831. These figures would then need to be benchmarked against historical procurement data for the M16A4, similar rifle platforms, and prevailing market rates for military-grade firearms. Factors such as manufacturing location, material costs, and specific contract terms (like warranty or included accessories) would influence the comparison. Given the M16A4 is a mature platform, costs might be expected to be relatively stable, but production volume and manufacturer efficiency play significant roles.

What are the specific technical requirements or specifications for the M16A4 rifles in this contract?

The contract data indicates the item being procured is 'M16A4 RIFLES.' While the specific technical specifications are not detailed in the summary data, it is understood that military rifle procurements adhere to rigorous government specifications, often outlined in a Statement of Work (SOW) or technical data package (TDP). These specifications would cover aspects such as materials, dimensions, performance metrics (e.g., accuracy, reliability), durability, safety features, and compatibility with existing military equipment and ammunition. Colt Defense LLC, as the awardee, would be contractually obligated to meet these precise military standards.

What is Colt Defense LLC's track record with M16A4 rifle production or similar military firearm contracts?

Colt Defense LLC has a long and established history as a manufacturer of firearms for the U.S. military, including various iterations of the M16 rifle platform. They were historically a primary producer of the M16 series. Their track record with M16A4 production would likely be extensive, given the rifle's adoption by the U.S. Marine Corps and other branches. Assessing their overall track record would involve reviewing past contract performance, delivery timeliness, quality control metrics, and any past performance issues or commendations on similar government contracts. Their continued ability to win such contracts suggests a generally positive performance history.

Were there any significant risks identified during the bidding or award process for this contract?

The provided data does not explicitly detail risks identified during the bidding or award process. However, general risks associated with firearm procurement include supply chain disruptions for raw materials (steel, polymers), potential manufacturing delays, quality control issues, and adherence to evolving safety and environmental regulations. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation might hint at initial technical or capability-based exclusions, which could represent a risk if it unduly limits competition. The low number of bidders (2) could also be seen as a risk factor, potentially indicating less competitive pressure on pricing.

How does this contract fit into the broader context of U.S. Army small arms modernization or sustainment efforts?

The M16A4 rifle, while a capable weapon, represents an older generation of the M16 platform. The U.S. Army has been in the process of adopting newer rifle systems, such as the M4 carbine and more recently the Next Generation Squad Weapon (NGSW) program, which aims to replace the M4/M16 family. Therefore, a contract for M16A4 rifles might represent a sustainment effort for units still equipped with this model, a specific requirement for a particular variant or role, or potentially a final procurement before phasing out the platform entirely. It signifies that while modernization is ongoing, there remains a need for this specific rifle.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ALTERNATIVE SOURCES

Solicitation ID: W52H0907R0235

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Colt Defense Holding LLC (UEI: 603395794)

Address: 547 NEW PARK AVE, WEST HARTFORD, CT, 01

Business Categories: Category Business, Small Business

Financial Breakdown

Contract Ceiling: $16,631,569

Exercised Options: $16,631,569

Current Obligation: $16,631,569

Timeline