Department of Defense awards $38.5M for M4A1 Carbines, continuing a long-standing contract with FN America LLC
Contract Overview
Contract Amount: $38,486,394 ($38.5M)
Contractor: FN America LLC
Awarding Agency: Department of Defense
Start Date: 2014-05-06
End Date: 2018-06-07
Contract Duration: 1,493 days
Daily Burn Rate: $25.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 1. DELIVERY ORDER 0005 IS AWARDED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CONTRACT W56HZV-13-D-0030. 2. AWARD IS FOR THE FOLLOWING ITEM: 0004AA M4A1 CARBINE, 5.56 MM 1005-01-382-0953 0004AB M4A1 CARBINE, 5.56 MM 1005-01-382-0953 0004AC M4A1 CARBINE, 5.56 MM 1005-01-382-0953 3. THE UNIT PRICE IS IN ACCORDANCE WITH THE CONTRACT PRICING SHEET, ORDERING PERIOD 2 (21 FEBRUARY 2014 - 20 FEBRUARY 2015).
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29229
Plain-Language Summary
Department of Defense obligated $38.5 million to FN AMERICA LLC for work described as: 1. DELIVERY ORDER 0005 IS AWARDED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CONTRACT W56HZV-13-D-0030. 2. AWARD IS FOR THE FOLLOWING ITEM: 0004AA M4A1 CARBINE, 5.56 MM 1005-01-382-0953 0004AB M4A1 CARBINE, 5.56 MM 1005-01-382-0953 0004AC M4A1 CARBINE, 5.56 MM 1005-01-382-0… Key points: 1. This delivery order represents a continuation of existing procurement for standard military carbines. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. Pricing is tied to a pre-established pricing sheet from 2014, indicating potential for outdated rates. 4. The duration of the contract, spanning from 2014 to 2018, suggests a stable but potentially aging supply chain. 5. FN America LLC has a history of supplying this specific weapon system to the U.S. military. 6. The procurement falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector.
Value Assessment
Rating: fair
The unit price for the M4A1 Carbine is stated to be in accordance with the contract's pricing sheet from February 2014. Without access to that original pricing sheet and subsequent amendments, it is difficult to benchmark the value for money. However, procuring a standard-issue weapon system under an established contract suggests a degree of negotiated value. The total award amount of $38.5 million for an unspecified quantity of carbines over a multi-year period indicates a significant investment, but the per-unit cost remains opaque without further data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. While the specific number of bidders for the original contract is not provided, this designation suggests a competitive environment at the outset. The current delivery order leverages the existing competitive framework established previously. The level of competition at the time of the original award would have influenced price discovery.
Taxpayer Impact: A full and open competition process generally benefits taxpayers by fostering price reductions through multiple bids, ensuring the government receives competitive pricing for its procurements.
Public Impact
The primary beneficiaries are the U.S. Army personnel who will be equipped with M4A1 Carbines. This contract ensures the continued supply of a critical weapon system for military operations. The carbines are likely distributed to various Army units across different geographic locations. The procurement supports jobs within FN America LLC's manufacturing facilities and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Pricing tied to a 2014 pricing sheet may not reflect current market conditions or manufacturing efficiencies.
- Lack of transparency on the exact quantity of carbines procured makes per-unit cost analysis impossible.
- The extended contract duration could lead to obsolescence if weapon technology advances significantly.
Positive Signals
- Awarded under full and open competition, suggesting initial competitive pricing.
- FN America LLC is an established supplier of this weapon system, indicating reliability.
- The contract is firm fixed price, providing cost certainty for the government.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on small arms. The market for military small arms is dominated by a few key manufacturers capable of meeting stringent military specifications and production volumes. FN America LLC is a significant player in this market, holding substantial contracts for the M4 and M4A1 carbines. Comparable spending benchmarks would involve looking at other large-scale procurements of similar weapon systems by the Department of Defense or allied nations.
Small Business Impact
The data indicates that small business participation (sb) was false for this contract. There is no explicit mention of small business set-asides or subcontracting plans. This suggests that the primary contract was awarded to a large business, and there may be limited direct impact or opportunities for small businesses within this specific procurement, unless they are part of FN America LLC's larger supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting command and the Department of Defense's Inspector General. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified goods at an agreed-upon price. Transparency is facilitated through contract award databases, although detailed pricing sheets are often proprietary.
Related Government Programs
- M4 Carbine Procurement
- Department of the Army Weapons Systems
- Small Arms Manufacturing Contracts
- Defense Logistics Agency (DLA) Procurements
Risk Flags
- Pricing potentially outdated
- Lack of quantity transparency
- Extended contract duration
Tags
defense, department-of-the-army, fn-america-llc, m4a1-carbine, small-arms, full-and-open-competition, firm-fixed-price, delivery-order, south-carolina, large-business
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.5 million to FN AMERICA LLC. 1. DELIVERY ORDER 0005 IS AWARDED IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CONTRACT W56HZV-13-D-0030. 2. AWARD IS FOR THE FOLLOWING ITEM: 0004AA M4A1 CARBINE, 5.56 MM 1005-01-382-0953 0004AB M4A1 CARBINE, 5.56 MM 1005-01-382-0953 0004AC M4A1 CARBINE, 5.56 MM 1005-01-382-0953 3. THE UNIT PRICE IS IN ACCORDANCE WITH THE CONTRACT PRICING SHEET, ORDERING PERIOD 2 (21 FEBRUARY 2014 - 20 FEBRUARY 2015).
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 $38.5 million.
What is the period of performance?
Start: 2014-05-06. End: 2018-06-07.
What was the original competitive landscape for Contract W56HZV-13-D-0030, and how many bids were received?
The provided data states the award was made under 'FULL AND OPEN COMPETITION' for Delivery Order 0005. However, it does not specify the number of bids received for the original base contract (W56HZV-13-D-0030) or for this specific delivery order. Full and open competition means that all responsible sources were solicited and allowed to submit proposals. To fully assess the competitive dynamics and their impact on pricing, information on the number of proposals received and the evaluation criteria used during the initial contract award would be necessary. Without this, we can only infer that the opportunity was broadly advertised.
How does the unit price of the M4A1 Carbine under this contract compare to other government or commercial procurements of similar systems?
The data indicates that the unit price is 'in accordance with the contract pricing sheet, ordering period 2 (21 February 2014 - 20 February 2015)'. This means the pricing is fixed based on historical rates established over a decade ago. Without access to that specific pricing sheet, a direct unit cost comparison is impossible. However, it is highly probable that current market prices for comparable carbines, considering inflation and technological advancements, would differ. Benchmarking would require obtaining the actual unit price from the contract and comparing it to contemporary government solicitations for similar firearms or commercial sales data, adjusted for bulk purchasing and military specifications.
What is the total quantity of M4A1 Carbines procured under this specific delivery order?
The provided data lists the items being procured as 'M4A1 CARBINE, 5.56 MM 1005-01-382-0953' across three line items (0004AA, 0004AB, 0004AC). However, the quantity for each line item, or a total quantity for the delivery order, is not specified. The total award amount is $38,486,394.48. To determine the quantity, one would need to know the unit price from the referenced 2014 pricing sheet. Without the unit price or the quantity, it's impossible to calculate how many carbines were purchased under this specific $38.5 million order.
What are the specific risks associated with relying on a contract established in 2013-2015 for current weapon system procurement?
Relying on a contract established in 2013-2015 for current weapon system procurement carries several risks. Firstly, pricing may not reflect current market realities, potentially leading to overpayment if raw material costs or manufacturing efficiencies have changed significantly. Secondly, the technology embodied in the M4A1 Carbine, while proven, might be nearing obsolescence compared to newer designs that could offer improved performance or features. Thirdly, the supply chain and manufacturing processes validated under the original contract might not align with current cybersecurity or ethical sourcing standards. Finally, the contractor's own production capacity and priorities may have shifted over the decade, potentially impacting delivery timelines or responsiveness to urgent needs.
What is FN America LLC's track record with the M4/M4A1 carbine program, and has it faced significant performance issues?
FN America LLC has a long and established track record as a primary manufacturer of the M4 and M4A1 carbines for the U.S. military, dating back to the original contract awards. They are widely recognized for their production capabilities and adherence to military specifications. While any complex weapon system can experience isolated issues, the M4/M4A1 platform, in general, has been a workhorse for the U.S. military for decades. FN America has consistently met production demands and quality standards required for this critical program. Significant, systemic performance issues directly attributable to FN America's manufacturing quality that jeopardized the program have not been widely reported in public domain analyses.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wespavia SA (UEI: 371972030)
Address: 797 OLD CLEMSON RD, COLUMBIA, SC, 29229
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,486,394
Exercised Options: $38,486,394
Current Obligation: $38,486,394
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV13D0030
IDV Type: IDC
Timeline
Start Date: 2014-05-06
Current End Date: 2018-06-07
Potential End Date: 2018-06-07 12:06:00
Last Modified: 2018-11-16
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