DoD awards $34.1M for 60mm propelling charges to American Ordnance LLC under full and open competition
Contract Overview
Contract Amount: $34,142,964 ($34.1M)
Contractor: American Ordnance LLC
Awarding Agency: Department of Defense
Start Date: 2009-09-23
End Date: 2013-12-31
Contract Duration: 1,560 days
Daily Burn Rate: $21.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS CONTRACT IS AWARDED TO AMERICA ORDNANCE LLC FOR THE PRODUCTION OF VARIOUS CONFIGURATIONS OF 60MM PROPELLING CHARGES.
Place of Performance
Location: MIDDLETOWN, DES MOINES County, IOWA, 52638
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $34.1 million to AMERICAN ORDNANCE LLC for work described as: THIS CONTRACT IS AWARDED TO AMERICA ORDNANCE LLC FOR THE PRODUCTION OF VARIOUS CONFIGURATIONS OF 60MM PROPELLING CHARGES. Key points: 1. Contract focuses on ammunition manufacturing, specifically 60mm propelling charges. 2. Awarded to American Ordnance LLC, a significant player in ordnance production. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is 1560 days, indicating a medium-term supply agreement.
Value Assessment
Rating: good
The contract value of $34.1M for ammunition manufacturing appears reasonable given the scope and duration. Benchmarking against similar DoD contracts for ordnance 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 after exclusion of sources,' indicating a competitive process was intended to maximize value. This method generally leads to better price discovery.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the procured ammunition.
Public Impact
Ensures supply of critical ammunition for military operations. Supports domestic manufacturing capabilities for defense articles. Potential impact on readiness and operational effectiveness of Army units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery.
- Dependence on a single contractor for a specific munition type.
Positive Signals
- Demonstrates competitive procurement practices.
- Supports a domestic defense industrial base.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending benchmarks for similar ordnance contracts would be necessary for a detailed comparison.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of the Army is the awarding agency, implying standard oversight procedures are in place. Contract performance monitoring is crucial for ensuring timely delivery and quality.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for obsolescence of technology over contract duration.
- Geopolitical factors impacting raw material availability.
- Dependence on specific manufacturing processes.
- Budgetary constraints affecting future funding.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ia, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.1 million to AMERICAN ORDNANCE LLC. THIS CONTRACT IS AWARDED TO AMERICA ORDNANCE LLC FOR THE PRODUCTION OF VARIOUS CONFIGURATIONS OF 60MM 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 $34.1 million.
What is the period of performance?
Start: 2009-09-23. End: 2013-12-31.
What is the historical performance record of American Ordnance LLC on similar DoD contracts?
A review of American Ordnance LLC's past performance on Department of Defense contracts would be beneficial. This includes examining on-time delivery rates, quality control metrics, and any history of contract disputes or modifications. Understanding their track record provides insight into their reliability and capability to fulfill this current contract effectively.
Are there alternative suppliers for 60mm propelling charges that could be considered in future procurements?
Investigating alternative suppliers is crucial for ensuring long-term supply chain resilience and competitive pricing. Identifying other manufacturers capable of producing these specific charges, even if they were not part of this particular 'full and open' competition, allows for better market intelligence and potential future sourcing options. This proactive approach mitigates risks associated with sole-source reliance.
How does the unit cost of these propelling charges compare to similar munitions procured by allied nations?
Comparing the unit cost against international procurements of similar munitions can reveal potential cost efficiencies or inefficiencies. Differences in manufacturing standards, raw material costs, and economies of scale between countries can influence pricing. Such a comparison provides a broader perspective on the value obtained and highlights opportunities for cost savings in future acquisitions.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52P1J08R0078
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 17575 HIGHWAY 79, MIDDLETOWN, IA, 01
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $34,142,964
Exercised Options: $34,142,964
Current Obligation: $34,142,964
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-23
Current End Date: 2013-12-31
Potential End Date: 2013-12-31 00:00:00
Last Modified: 2014-05-23
More Contracts from American Ordnance LLC
- M795 TNT - Award of FY16 Requirements — $269.7M (Department of Defense)
- M795 TNT 155MM HE Projectiles - FY20 Requirements Awarded — $229.3M (Department of Defense)
- Ukraine: Multi-Year, UCA Delivery Order for M1128 LAP Projectiles — $192.6M (Department of Defense)
- Order W519tc25f0357 IS for the Contractor to Load, Assemble, and Pack a Quantity of 388,436 155MM M795 TNT Loaded Projectiles — $188.1M (Department of Defense)
- Order W519tc24f0399 IS for the Contractor to Load, Assemble, and Pack a Quantity of 346,478 155MM M795 TNT Loaded Projectiles — $151.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)