DoD Awards $16.2M for M16A4 Rifles to FN America LLC, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $16,228,500 ($16.2M)
Contractor: FN America LLC
Awarding Agency: Department of Defense
Start Date: 2008-09-10
End Date: 2010-02-26
Contract Duration: 534 days
Daily Burn Rate: $30.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M16A4 RIFLES
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29229
Plain-Language Summary
Department of Defense obligated $16.2 million to FN AMERICA LLC for work described as: M16A4 RIFLES Key points: 1. Contract awarded to FN America LLC for M16A4 rifles. 2. Totaling $16.2 million, the contract was secured through full and open competition. 3. The contract duration was 534 days, ending in February 2010. 4. This falls under the Small Arms, Ordnance, and Ordnance Accessories Manufacturing sector.
Value Assessment
Rating: good
The contract value of $16.2 million for M16A4 rifles appears reasonable given the quantity and nature of the product. Benchmarking against similar defense contracts for small arms would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms used are not detailed but the competitive nature is a positive sign.
Taxpayer Impact: The use of full and open competition suggests that taxpayers benefited from a potentially lower price due to market forces driving down costs.
Public Impact
Ensures readiness for Army personnel by providing essential firearms. Supports domestic manufacturing and jobs within the defense industrial base. The procurement process aimed for competitive pricing, potentially saving taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific per-unit cost data makes precise value assessment difficult.
- Contract awarded in 2008-2010, historical data may not reflect current market prices.
- No indication of small business participation.
Positive Signals
- Awarded through full and open competition.
- Contract awarded to a known defense manufacturer.
- Firm Fixed Price contract type provides cost certainty.
Sector Analysis
This contract falls within the defense sector, specifically focusing on small arms manufacturing. Spending in this area is critical for military readiness and is subject to rigorous procurement standards to ensure quality and cost-effectiveness.
Small Business Impact
The data indicates that small business participation was not a factor in this contract award. Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the procurement favored larger, established prime contractors.
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 procurements. The use of a competitive process suggests a degree of accountability in the award.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of detailed cost breakdown.
- No small business participation noted.
- Historical data, potentially outdated.
- Limited information on specific performance metrics.
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 $16.2 million to FN AMERICA LLC. M16A4 RIFLES
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 $16.2 million.
What is the period of performance?
Start: 2008-09-10. End: 2010-02-26.
What was the average per-unit cost of the M16A4 rifles under this contract?
The contract data does not explicitly state the per-unit cost. With a total award of $16,228,500 for 332,994 units, the implied average per-unit cost is approximately $48.74. However, this is a derived figure and does not account for potential variations in pricing or contract line item structures.
What were the primary risks associated with this procurement, and how were they mitigated?
Potential risks could include supply chain disruptions, quality control issues with firearms manufacturing, and price fluctuations. Mitigation likely involved stringent quality assurance clauses within the Firm Fixed Price contract, vetting the manufacturer's capabilities, and the competitive bidding process itself to ensure a reliable supplier at a fair price.
How effective was the full and open competition in achieving the best value for the government?
Full and open competition is generally considered an effective method for achieving best value by fostering a competitive environment that drives down prices and encourages innovation. While specific metrics for this contract's effectiveness are not provided, the process itself is designed to maximize competition and ensure the government secures goods and services at optimal terms.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $16,228,500
Exercised Options: $16,228,500
Current Obligation: $16,228,500
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52H0908D0121
IDV Type: IDC
Timeline
Start Date: 2008-09-10
Current End Date: 2010-02-26
Potential End Date: 2010-02-26 00:00:00
Last Modified: 2010-02-19
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