DoD Awards $40M for M240B Machine Guns to FN America LLC
Contract Overview
Contract Amount: $39,829,709 ($39.8M)
Contractor: FN America LLC
Awarding Agency: Department of Defense
Start Date: 2008-02-13
End Date: 2010-06-30
Contract Duration: 868 days
Daily Burn Rate: $45.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M240B MACHINE GUNS
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29229
Plain-Language Summary
Department of Defense obligated $39.8 million to FN AMERICA LLC for work described as: M240B MACHINE GUNS Key points: 1. Contract awarded to FN America LLC, a known defense contractor. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is 868 days, indicating a medium-term supply need. 4. The award value is approximately $40 million. 5. The contract falls under the Small Arms, Ordnance, and Ordnance Accessories Manufacturing sector.
Value Assessment
Rating: good
The contract value of $39.8M for M240B machine guns appears reasonable given the quantity and nature of the equipment. Benchmarking against similar defense procurement contracts for firearms would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The existence of multiple bidders would have driven price discovery.
Taxpayer Impact: Taxpayer funds are being used for essential military equipment procurement through a competitive process, aiming for cost-effectiveness.
Public Impact
Ensures the U.S. Army is equipped with standard-issue M240B machine guns. Supports the defense industrial base and manufacturing capabilities. Contributes to national security readiness by providing critical weaponry.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals.
- Dependence on a single supplier for critical weapon systems.
Positive Signals
- Awarded through full and open competition.
- Contract supports a key military requirement.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the defense sector, specifically focusing on ordnance and small arms manufacturing. Spending in this area is critical for military readiness and is often subject to rigorous oversight and competitive procurement processes.
Small Business Impact
The data indicates that this contract was not awarded to a small business. While this specific award did not benefit small businesses, the defense sector overall often has subcontracting opportunities for smaller firms.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense, which has established oversight mechanisms for defense procurement. The firm fixed price contract type also offers a degree of cost control.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a single entity.
- No small business participation noted.
- Long-term supply chain dependency.
- Potential for future price increases.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, sc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.8 million to FN AMERICA LLC. M240B MACHINE GUNS
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 $39.8 million.
What is the period of performance?
Start: 2008-02-13. End: 2010-06-30.
What is the historical price trend for M240B machine guns under similar contracts?
Analyzing historical pricing data for M240B machine guns from previous contracts, especially those awarded under similar competitive conditions, is crucial. This helps establish a baseline for fair pricing and identify any significant deviations in the current award. Without this historical context, it's challenging to definitively assess if the $39.8M award represents optimal value for the taxpayer.
What are the potential risks associated with relying on FN America LLC for M240B machine gun supply?
Potential risks include supply chain disruptions, increased reliance on a single manufacturer, and potential price escalations in future sole-source or limited-competition scenarios. While this award was competitive, long-term sustainment and future needs might necessitate exploring alternative suppliers or ensuring robust contingency plans are in place to mitigate these risks.
How effectively does this contract contribute to the Army's overall operational readiness?
This contract directly contributes to the Army's operational readiness by ensuring a supply of the M240B machine gun, a critical weapon system. The full and open competition process suggests that the acquisition was conducted efficiently, aiming to provide the necessary equipment at a competitive price, thereby supporting the Army's mission requirements.
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
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Societ Herstalienne Pour LA Finance L'industrielle ET LE C (UEI: 370005936)
Address: 797 OLD CLEMSON RD, COLUMBIA, SC, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $39,829,709
Exercised Options: $39,829,709
Current Obligation: $39,829,709
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52H0907D0319
IDV Type: IDC
Timeline
Start Date: 2008-02-13
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2011-05-18
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