DoD awards $31.5M for Ammunition Manufacturing to Global Military Products Inc

Contract Overview

Contract Amount: $31,502,117 ($31.5M)

Contractor: Global Military Products Inc

Awarding Agency: Department of Defense

Start Date: 2016-06-08

End Date: 2018-09-26

Contract Duration: 840 days

Daily Burn Rate: $37.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NSA/NSMWS

Place of Performance

Location: PERRY, TAYLOR County, FLORIDA, 32348

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $31.5 million to GLOBAL MILITARY PRODUCTS INC for work described as: NSA/NSMWS Key points: 1. Spending on ammunition manufacturing is a critical component of defense readiness. 2. Global Military Products Inc. secured this contract through full and open competition. 3. The contract duration of 840 days suggests a significant supply chain requirement. 4. The award value of $31.5M falls within typical ranges for ammunition procurement.

Value Assessment

Rating: good

The contract's fixed price structure provides cost certainty. Benchmarking against similar ammunition contracts would offer further insight into its value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Full and open competition generally leads to competitive pricing. The multiple delivery orders indicate ongoing needs and potential for price adjustments over time.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for essential ammunition.

Public Impact

Ensures supply of critical ammunition for military operations. Supports defense industrial base and manufacturing capabilities. Potential for job creation in the ammunition manufacturing sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single contractor for a critical defense commodity.
Potential for price escalation in subsequent delivery orders.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost predictability.

Sector Analysis

The defense sector relies heavily on specialized manufacturing for munitions. Spending benchmarks for ammunition procurement can vary widely based on type and quantity, but $31.5M is a substantial award.

Small Business Impact

This contract was not awarded to a small business. Analysis of subcontracting opportunities for small businesses is not available from the provided data.

Oversight & Accountability

The Department of the Army's procurement process, including the use of delivery orders under a larger contract, is subject to standard oversight mechanisms to ensure compliance and fair pricing.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Supply chain disruption risk
Geopolitical instability impacting raw material costs
Technological obsolescence of ammunition types
Contractor performance issues

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.5 million to GLOBAL MILITARY PRODUCTS INC. NSA/NSMWS

Who is the contractor on this award?

The obligated recipient is GLOBAL MILITARY PRODUCTS 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 $31.5 million.

What is the period of performance?

Start: 2016-06-08. End: 2018-09-26.

What is the specific type of ammunition procured and its intended use?

The data indicates the contract is for 'Ammunition (except Small Arms) Manufacturing' with the PSC code 332993. Without further details, the specific type and intended use remain general. This could range from artillery shells to mortar rounds, crucial for various combat scenarios and training exercises.

What are the key performance indicators and quality assurance measures for this contract?

The provided data does not detail specific Key Performance Indicators (KPIs) or quality assurance measures. However, for defense contracts involving ammunition, stringent quality control and testing protocols are typically mandated by the Department of Defense to ensure reliability and safety in operational environments.

How does the unit cost of this ammunition compare to historical or industry benchmarks?

A direct per-unit cost benchmark is not available from the provided data. To assess this, one would need to compare the pricing of specific ammunition types within this contract against similar procurements by the DoD or other allied nations, considering factors like quantity, specifications, and market conditions.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Chemring Group PLC (UEI: 216244954)

Address: 10625 PUCKETT ROAD, PERRY, FL, 32348

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,502,117

Exercised Options: $31,502,117

Current Obligation: $31,502,117

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0059

IDV Type: IDC

Timeline