DoD awards $40.7M for M249 Squad Automatic Weapons to FN America LLC under full and open competition
Contract Overview
Contract Amount: $40,742,760 ($40.7M)
Contractor: FN America LLC
Awarding Agency: Department of Defense
Start Date: 2008-04-04
End Date: 2008-12-31
Contract Duration: 271 days
Daily Burn Rate: $150.3K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIXED PRICE
Sector: Defense
Official Description: M249 SQUAD AUTOMATIC WEAPON
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29229
Plain-Language Summary
Department of Defense obligated $40.7 million to FN AMERICA LLC for work described as: M249 SQUAD AUTOMATIC WEAPON Key points: 1. Significant contract value for a critical weapon system. 2. FN America LLC is a known manufacturer in this niche. 3. Potential for price fluctuations given fixed-price contract type. 4. Sector focus on defense manufacturing and ordnance.
Value Assessment
Rating: good
The total award of $40.7M for M249 SAW systems appears reasonable given the nature of specialized defense equipment. Benchmarking against similar sole-source or limited-competition contracts for advanced firearms would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process but with specific source limitations. This method can impact price discovery by narrowing the potential bidder pool.
Taxpayer Impact: Taxpayer funds are utilized for essential military equipment procurement. The competitive aspect, even if limited, aims to secure fair pricing for these specialized weapons.
Public Impact
Ensures readiness for Army personnel with a standard-issue automatic rifle. Supports domestic defense manufacturing capabilities. Impacts soldiers' effectiveness in combat scenarios. Contributes to the supply chain for small arms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may not yield the absolute lowest price.
- Reliance on a single primary contractor for a critical system.
Positive Signals
- Awarded under a competitive process.
- Procurement of essential military hardware.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on small arms manufacturing. Spending benchmarks in this area are highly variable, influenced by technological advancements, geopolitical factors, and specific military requirements.
Small Business Impact
The data indicates the primary contractor is FN America LLC. There is no explicit information regarding small business participation or subcontracting in this specific award notice.
Oversight & Accountability
The award falls under the Department of the Army, a major component of the Department of Defense. Oversight would typically involve program managers, contracting officers, and potentially Inspector General reviews to ensure compliance and performance.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited competition impacting price.
- Contract duration and delivery order structure.
- Reliance on a single source for a critical weapon system.
- Fixed-price contract risk if costs escalate unexpectedly for the contractor.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.7 million to FN AMERICA LLC. M249 SQUAD AUTOMATIC WEAPON
Who is the contractor on this award?
The obligated recipient is FN AMERICA 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 $40.7 million.
What is the period of performance?
Start: 2008-04-04. End: 2008-12-31.
What is the historical pricing trend for the M249 SAW, and how does this award compare?
Historical pricing data for the M249 SAW is not readily available in the public domain. However, comparing this $40.7 million award over its duration against previous procurement cycles or similar weapon systems would be necessary. Factors like inflation, technological upgrades, and quantity discounts significantly influence price trends, making direct comparisons challenging without detailed context.
What are the specific reasons for excluding other sources in this 'full and open competition after exclusion' scenario?
Excluding other sources typically occurs when specific technical requirements, existing infrastructure compatibility, or unique manufacturing capabilities are necessary, and only certain vendors can meet them. For the M249 SAW, this could relate to proprietary designs, existing logistical chains, or specific performance standards that only FN America LLC could demonstrably meet at the time of the award.
How does the fixed-price contract type mitigate risks for the government regarding cost overruns?
A fixed-price contract type generally shifts the risk of cost overruns to the contractor. The government agrees to pay a set price, and the contractor is responsible for managing their costs to remain profitable. This structure provides cost certainty for the government, assuming the initial price was set appropriately based on market conditions and contractor estimates.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W15QKN07R0414
Offers Received: 2
Pricing Type: FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Societ Herstalienne Pour LA Finance L'industrielle ET LE C
Address: 797 OLD CLEMSON RD, COLUMBIA, SC, 29229
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $40,742,760
Exercised Options: $40,742,760
Current Obligation: $40,742,760
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN08D0006
IDV Type: IDC
Timeline
Start Date: 2008-04-04
Current End Date: 2008-12-31
Potential End Date: 2013-02-04 00:00:00
Last Modified: 2023-06-02
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