Army Awards $16M for M240B Machine Guns to FN America LLC
Contract Overview
Contract Amount: $16,072,104 ($16.1M)
Contractor: FN America LLC
Awarding Agency: Department of Defense
Start Date: 2008-06-05
End Date: 2010-08-31
Contract Duration: 817 days
Daily Burn Rate: $19.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD OF DELIVERY ORDER 0008 FOR M240B MACHINE GUNS
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29229
Plain-Language Summary
Department of Defense obligated $16.1 million to FN AMERICA LLC for work described as: AWARD OF DELIVERY ORDER 0008 FOR M240B MACHINE GUNS Key points: 1. Significant award for small arms manufacturing, impacting defense readiness. 2. FN America LLC is a key supplier in this niche market. 3. Risk associated with reliance on a single supplier for critical components. 4. Spending falls within the defense sector's ordnance procurement.
Value Assessment
Rating: good
The award amount of $16,072,103.52 for M240B machine guns appears reasonable given the nature of military hardware procurement. Benchmarking against similar large-scale ordnance contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should have driven favorable pricing. The use of Firm Fixed Price (FFP) contract type further supports price certainty.
Taxpayer Impact: Taxpayer funds are being used for essential defense equipment, with competition aiming to ensure value for money.
Public Impact
Ensures continued availability of a critical weapon system for U.S. military personnel. Supports domestic manufacturing capabilities within the defense industrial base. Potential for follow-on contracts or sustainment services related to the M240B.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for sole-source follow-on orders if competition is not maintained.
- Supply chain disruptions impacting production timelines.
- Geopolitical factors influencing demand and production costs.
Positive Signals
- Established supplier with proven track record.
- Firm Fixed Price contract provides cost certainty.
- Awarded under full and open competition.
Sector Analysis
This award falls within the defense sector, specifically the manufacturing of small arms and ordnance. Spending benchmarks for similar weapon system procurements would be relevant for a deeper analysis.
Small Business Impact
This contract was awarded to FN America LLC, a large business. There is no indication of small business participation in this specific award, which is common for large-scale defense hardware contracts.
Oversight & Accountability
The Department of the Army's procurement process, including the use of full and open competition and a Firm Fixed Price contract, suggests a degree of oversight. Further review of the source selection documentation would confirm accountability.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Reliance on a single manufacturer for critical weapon systems.
- Potential for cost overruns in future sustainment or upgrade phases.
- Vulnerability to supply chain disruptions for key components.
- Long-term strategic implications of maintaining a specific weapon platform.
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 $16.1 million to FN AMERICA LLC. AWARD OF DELIVERY ORDER 0008 FOR 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 $16.1 million.
What is the period of performance?
Start: 2008-06-05. End: 2010-08-31.
What is the projected lifecycle cost of the M240B machine gun program, including sustainment and upgrades?
The lifecycle cost of the M240B program is not detailed in this award notice. Such costs typically encompass initial procurement, spare parts, maintenance, training, and potential future upgrades or modifications. A comprehensive lifecycle cost analysis would require access to broader program documentation beyond this specific delivery order.
What are the specific performance metrics and quality assurance measures in place for these M240B machine guns?
While the award specifies a Firm Fixed Price contract, the details of performance metrics and quality assurance are not provided. These are typically outlined in the contract's statement of work and technical specifications, ensuring the delivered weapons meet stringent military standards for reliability and durability.
How does the unit cost of this M240B award compare to previous procurements or similar weapon systems?
Direct comparison of unit cost is difficult without knowing the exact quantity of machine guns awarded under this $16 million delivery order. However, the use of full and open competition and a Firm Fixed Price contract suggests an effort to achieve competitive pricing for this essential defense equipment.
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: $16,072,104
Exercised Options: $16,072,104
Current Obligation: $16,072,104
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52H0907D0319
IDV Type: IDC
Timeline
Start Date: 2008-06-05
Current End Date: 2010-08-31
Potential End Date: 2010-08-31 00:00:00
Last Modified: 2009-07-07
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