Department of Defense awards $39M for small arms, with UDC USA Inc. securing the contract

Contract Overview

Contract Amount: $39,009,098 ($39.0M)

Contractor: UDC USA, Inc

Awarding Agency: Department of Defense

Start Date: 2017-04-07

End Date: 2018-06-11

Contract Duration: 430 days

Daily Burn Rate: $90.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SMALL ARMS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $39.0 million to UDC USA, INC for work described as: SMALL ARMS Key points: 1. Contract value of $39M for small arms indicates significant investment in tactical equipment. 2. The contract was awarded under full and open competition after exclusion of sources, suggesting a deliberate selection process. 3. A delivery order with a fixed price suggests predictable costs for the specified period. 4. The contract duration of 430 days points to a focused, medium-term supply requirement. 5. The award to UDC USA, INC. highlights a key supplier in the small arms manufacturing sector. 6. The contract's geographic focus on Florida (ST: FL) may indicate regional production or distribution advantages.

Value Assessment

Rating: good

The contract value of approximately $39 million for small arms and ordnance accessories appears reasonable given the nature of the products. Benchmarking against similar contracts for specialized firearms and related equipment would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests that the government has negotiated a set cost, mitigating the risk of cost overruns for the specified items. The award amount is within the expected range for procurement of this type of military hardware.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded, possibly due to specialized requirements or prior performance. The number of bidders is not explicitly stated, but the 'exclusion of sources' suggests a more tailored competition than a completely unrestricted one. This approach can sometimes lead to fewer bidders, potentially impacting price discovery compared to a broad open competition.

Taxpayer Impact: While the competition was not fully unrestricted, the 'after exclusion of sources' clause implies a structured process to ensure qualified vendors were considered. Taxpayers benefit from a competitive process that aims to secure necessary equipment from capable providers, even if the pool of bidders is narrowed.

Public Impact

The primary beneficiaries are U.S. Special Operations Command (SOCOM) personnel who will receive essential small arms and ordnance. The services delivered include the manufacturing and supply of small arms, ordnance, and related accessories. The contract's geographic impact is primarily linked to the contractor's operations in Florida (ST: FL). Workforce implications may include job creation or maintenance within UDC USA, INC. and its supply chain, particularly in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources, which could impact price.
Dependence on a single contractor (UDC USA, INC.) for a critical supply of small arms.
The specific nature of 'ordnance' could introduce specialized handling or safety risks.
The contract's fixed price might not account for unforeseen material cost fluctuations if not structured carefully.

Positive Signals

Awarded under a competitive process, indicating some level of vetting and selection.
Firm fixed-price contract provides cost certainty for the government.
The contract addresses a clear need for small arms within the Department of Defense.
UDC USA, INC. is a known entity in the defense supply chain, suggesting some level of established capability.

Sector Analysis

The defense sector, particularly the segment focused on small arms and ordnance manufacturing, is characterized by specialized production capabilities and stringent quality control requirements. This contract fits within the broader category of defense procurement for tactical equipment. Comparable spending benchmarks for similar small arms contracts can vary significantly based on quantity, customization, and technological sophistication. The market size for such specialized defense manufacturing is substantial, driven by ongoing military modernization and operational needs.

Small Business Impact

This contract does not appear to have a small business set-aside component (SB: false). There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless UDC USA, INC. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Special Operations Command (SOCOM) contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, which holds the contractor responsible for delivering goods at the agreed-upon price. Transparency is facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Small Arms Procurement
U.S. Special Operations Command Equipment Acquisition
Ordnance and Ammunition Manufacturing Contracts
Tactical Firearm Supply Agreements
Defense Industrial Base - Weapons Systems

Risk Flags

Potential for limited competition
Contractor performance risk
Supply chain vulnerability
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to UDC USA, INC. SMALL ARMS

Who is the contractor on this award?

The obligated recipient is UDC USA, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $39.0 million.

What is the period of performance?

Start: 2017-04-07. End: 2018-06-11.

What is the track record of UDC USA, INC. in fulfilling defense contracts, particularly for small arms?

Information regarding UDC USA, INC.'s specific track record for fulfilling defense contracts, especially for small arms, is not detailed in the provided data. However, their selection for this $39 million contract by the U.S. Special Operations Command suggests they possess the necessary qualifications and capabilities. A deeper dive into their contract history, past performance reviews, and any reported issues or successes would be required for a comprehensive assessment. Examining their history with similar product types and contract values would offer further insight into their reliability and performance.

How does the $39 million contract value compare to typical spending on small arms by SOCOM or the DoD?

The $39 million contract value for small arms represents a significant but not extraordinary investment for a major defense entity like the U.S. Special Operations Command (SOCOM). SOCOM's annual budget for equipment and sustainment runs into billions of dollars, and procurements for specialized firearms and ordnance are a consistent component. This specific award is a delivery order, suggesting it's part of a larger framework or a specific need. To benchmark effectively, one would compare this to other recent SOCOM or DoD contracts for similar quantities and types of small arms, considering factors like customization and technological advancements. Without broader spending data, it's difficult to definitively state if this is high or low, but it aligns with substantial tactical equipment procurement.

What are the primary risks associated with this specific small arms contract?

The primary risks associated with this contract include potential supply chain disruptions affecting UDC USA, INC., which could delay delivery of critical small arms to SOCOM. Given the 'exclusion of sources' in the competition, there's a risk that the narrowed bidder pool might have limited the government's ability to secure the absolute best price, although the fixed-price nature mitigates cost overruns. Another risk could be the obsolescence of the contracted small arms if technology rapidly advances, though this is less likely for standard ordnance. Finally, ensuring the quality and reliability of the delivered firearms and ordnance is paramount, as failures in the field can have severe consequences.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach aims to balance broad competition with specific requirements. It ensures that multiple qualified vendors are considered, which generally promotes price discovery and value for taxpayers. However, by excluding certain sources, the potential number of bidders is reduced. The effectiveness hinges on the justification for exclusion; if exclusions are well-founded (e.g., based on unique capabilities or security clearances), it can lead to better-suited solutions. If exclusions are arbitrary, it could limit competition and potentially increase costs. For taxpayers, the key is whether this method ultimately yields the best combination of quality, capability, and price for the specific defense need.

What are the historical spending patterns for small arms and ordnance by the Department of Defense?

Historical spending patterns for small arms and ordnance by the Department of Defense are substantial and consistent, reflecting the ongoing need for modern weaponry across various branches and special operations units. The DoD consistently allocates billions of dollars annually towards the procurement, maintenance, and modernization of firearms, ammunition, and related accessories. Spending fluctuates based on geopolitical events, modernization programs, and specific operational requirements. Contracts like the one awarded to UDC USA, INC. are typical components of this larger spending trend, often awarded through competitive processes, though sometimes with specific source exclusions for specialized needs. Analyzing historical data reveals a continuous demand for reliable and advanced small arms.

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: H9222216R0001

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4030 BOY SCOUT BLVD STE 460, TAMPA, FL, 33607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,009,098

Exercised Options: $39,009,098

Current Obligation: $39,009,098

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222216G0009

IDV Type: BOA

Timeline