Department of Defense awards $37.4M for non-standard ammunition, with 2 bidders competing

Contract Overview

Contract Amount: $37,355,289 ($37.4M)

Contractor: Global Military Products Inc

Awarding Agency: Department of Defense

Start Date: 2016-06-21

End Date: 2017-10-19

Contract Duration: 485 days

Daily Burn Rate: $77.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: NON-STANDARD AMMUNITION

Place of Performance

Location: PERRY, TAYLOR County, FLORIDA, 32348

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $37.4 million to GLOBAL MILITARY PRODUCTS INC for work described as: NON-STANDARD AMMUNITION Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. The contract was awarded under full and open competition, suggesting a healthy market. 3. Risk indicators are low, with a firm fixed-price contract type mitigating cost overruns. 4. Performance context is limited to the delivery order period, with no long-term performance data available. 5. This contract falls within the Defense sector, specifically for ammunition manufacturing. 6. The award amount is moderate within the context of defense procurement.

Value Assessment

Rating: good

The contract value of approximately $37.4 million for non-standard ammunition appears reasonable, especially considering it was awarded through full and open competition. Benchmarking against similar ammunition procurements would provide a more precise value-for-money assessment. The firm fixed-price contract type is generally favorable for the government, as it shifts cost overrun risk to the contractor. Without specific unit cost data or comparison to market rates for this specialized ammunition, a definitive per-unit cost assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the solicitation was broadly advertised and multiple responsible sources were permitted to submit offers. The presence of two bidders suggests a degree of competition, though the exact number of interested parties and the intensity of their bidding are not detailed. A higher number of bidders typically leads to more competitive pricing and better price discovery for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and ensures the government receives offers from a wide range of qualified suppliers.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units requiring specialized ammunition. The service delivered is the manufacturing and supply of non-standard ammunition. The geographic impact is primarily tied to the contractor's location in Florida, with potential downstream effects on military readiness. Workforce implications include employment at the contractor's facility and potentially within the broader defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited visibility into the specific technical requirements and potential obsolescence of 'non-standard' ammunition.
The duration of the contract (485 days) is relatively short, which might not reflect long-term strategic needs or supplier stability.
Lack of detailed performance metrics makes it difficult to assess the contractor's execution beyond meeting delivery deadlines.

Positive Signals

Awarded through full and open competition, indicating a robust market and potential for competitive pricing.
Firm fixed-price contract type mitigates financial risk for the government.
The contractor, GLOBAL MILITARY PRODUCTS INC, has a track record, though specific performance on this contract needs further review.

Sector Analysis

The defense sector, particularly the segment focused on ordnance and ammunition manufacturing, is characterized by specialized production capabilities and stringent quality control requirements. This contract for non-standard ammunition fits within this niche, supplying essential but potentially less common munitions. The market size for specialized ammunition can vary significantly based on geopolitical factors and military modernization programs. Comparable spending benchmarks would typically be found within broader Department of Defense budget allocations for munitions and weapon systems.

Small Business Impact

There is no indication that this contract included a small business set-aside. The presence of two bidders suggests that larger, established defense contractors may have been the primary participants. Subcontracting opportunities for small businesses are possible but not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on whether any small businesses were involved as subcontractors or if this contract diverted resources from potential small business set-aside opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver goods at the agreed-upon price. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

Department of Defense Ammunition Procurement
Ordnance Manufacturing Contracts
Defense Industrial Base Support
Military Logistics and Supply Chain

Risk Flags

Potential for obsolescence of non-standard ammunition.
Supply chain risks for specialized munitions.
Limited competition (2 bidders) may impact price discovery.
Lack of detailed performance metrics in award data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.4 million to GLOBAL MILITARY PRODUCTS INC. NON-STANDARD AMMUNITION

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 $37.4 million.

What is the period of performance?

Start: 2016-06-21. End: 2017-10-19.

What is the specific nature and intended use of the 'non-standard ammunition' procured under this contract?

The term 'non-standard ammunition' suggests munitions that do not conform to the most common military specifications or calibers, or perhaps are designed for specialized platforms or unique operational requirements. This could include older types of ammunition, foreign-made equivalents, or custom-designed rounds for specific mission profiles. Without further details from the contract's statement of work or technical specifications, the precise nature remains unclear. Its intended use is likely for specific military operations where standard ammunition is unsuitable or unavailable, potentially supporting legacy systems or unique tactical situations. Understanding the specific type is crucial for assessing its strategic value and potential obsolescence risks.

How does the awarded price of approximately $37.4 million compare to market rates for similar types of ammunition?

Benchmarking the $37.4 million award against market rates for similar non-standard ammunition is challenging without precise technical specifications and quantity details. However, given that the contract was awarded under full and open competition with two bidders, the price is likely competitive within its niche. The firm fixed-price nature suggests the contractor assumed the risk of cost fluctuations. To perform a thorough comparison, one would need to identify comparable contracts for similar ammunition types, considering factors like caliber, explosive fill, lot acceptance testing requirements, and delivery timelines. Publicly available data on specialized munitions pricing is often limited, making direct comparisons difficult.

What are the specific risks associated with procuring 'non-standard' ammunition, and how were they mitigated?

Procuring 'non-standard' ammunition carries several risks. Firstly, there's a risk of obsolescence if the ammunition is designed for legacy systems that are being phased out. Secondly, compatibility issues with existing platforms could arise. Thirdly, the supply chain for non-standard items might be less robust, leading to potential delays or quality control challenges. Fourthly, the lack of standardization can complicate logistics and training. Mitigation strategies likely included rigorous technical evaluations during the bidding process, clear quality assurance provisions in the contract, and potentially requiring the contractor to demonstrate a stable supply chain. The firm fixed-price contract also mitigates financial risk for the government, ensuring costs do not escalate beyond the agreed amount.

What was the historical spending pattern for this specific type of ammunition or similar items by the Department of the Army?

Historical spending patterns for this specific type of 'non-standard ammunition' by the Department of the Army are not detailed in the provided data. However, the Department of Defense, including the Army, consistently procures a wide array of ammunition types, ranging from standard small arms rounds to specialized ordnance. Spending on non-standard items typically fluctuates based on operational needs, the lifecycle of weapon systems, and specific mission requirements. Analyzing past contract awards for similar niche munitions, or tracking overall ammunition budgets, would be necessary to establish a historical context. This particular $37.4 million award represents a single procurement action within a potentially larger, ongoing category of spending.

What is the track record of GLOBAL MILITARY PRODUCTS INC in fulfilling defense contracts, particularly for ammunition?

GLOBAL MILITARY PRODUCTS INC has been awarded this contract, indicating they are a recognized entity within the defense supply chain. To assess their track record, a review of their past performance on similar contracts would be necessary. This would involve examining contract databases for previous awards, delivery performance history, any instances of contract disputes or terminations, and customer satisfaction ratings if available. Information on their experience with manufacturing and supplying ammunition, especially specialized or non-standard types, would be critical. Without this detailed historical performance data, it's difficult to definitively gauge their reliability and expertise beyond their ability to win this specific bid.

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: $37,355,289

Exercised Options: $37,355,289

Current Obligation: $37,355,289

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J16D0059

IDV Type: IDC

Timeline