Army Awards $18M for M240B Machine Guns to FN America LLC Under Full and Open Competition
Contract Overview
Contract Amount: $18,063,402 ($18.1M)
Contractor: FN America LLC
Awarding Agency: Department of Defense
Start Date: 2008-07-24
End Date: 2011-05-31
Contract Duration: 1,041 days
Daily Burn Rate: $17.4K/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 $18.1 million to FN AMERICA LLC for work described as: M240B MACHINE GUNS Key points: 1. The contract value is $18,063,402.40. 2. FN America LLC is the sole awardee. 3. The contract was awarded under full and open competition. 4. The contract period spans from July 2008 to May 2011.
Value Assessment
Rating: good
The contract was awarded using a firm fixed price, which is generally favorable for the government in managing costs. The benchmark of $17,352 per unit suggests a reasonable price point for this type of military hardware, though direct comparison requires detailed specification analysis.
Cost Per Unit: $17,352
Competition Analysis
Competition Level: full-and-open
The award was made through full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive price discovery and ensure the government receives fair market value for the machine guns.
Taxpayer Impact: The competitive nature of the award suggests that taxpayers benefited from a price that reflects market conditions rather than a sole-source premium.
Public Impact
Ensures the U.S. Army is equipped with essential M240B machine guns. Supports a key defense manufacturing capability within the United States. The competitive award process aims for efficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contracts if competition diminishes.
- Long-term sustainment and spare parts availability not detailed.
Positive Signals
- Firm fixed price contract limits cost overrun risk.
- Full and open competition promotes best value.
- Award to established manufacturer ensures quality and reliability.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ordnance. Spending in this area is critical for national security. Benchmarks for similar large-caliber weapon systems can vary significantly based on technological advancements and production volumes.
Small Business Impact
The awardee, FN America LLC, is not identified as a small business. The contract does not appear to have specific small business set-aside provisions, indicating that the primary focus was on obtaining the best value through open competition.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, including performance monitoring and financial accountability.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole awardee concentration risk
- Potential for future price increases
- Dependence on specific manufacturer's production capacity
- Limited visibility into long-term sustainment costs
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 $18.1 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 $18.1 million.
What is the period of performance?
Start: 2008-07-24. End: 2011-05-31.
What is the long-term strategic value of this specific machine gun platform for the Army's operational needs?
The M240B machine gun is a widely adopted medium machine gun known for its reliability and versatility. Its strategic value lies in providing sustained suppressive fire capabilities across various combat platforms and infantry roles. Continued procurement suggests it remains a critical component of the Army's standard infantry armament, supporting tactical objectives and troop effectiveness in diverse operational environments.
What are the potential risks associated with relying on a single manufacturer for this critical ordnance?
Relying on a single manufacturer like FN America LLC for the M240B could pose risks related to supply chain disruptions, price escalation if competition is not maintained, and potential vulnerabilities in national defense readiness if the manufacturer faces production issues. Dependence also limits opportunities for innovation or adopting alternative technologies from other potential suppliers in the future.
How effectively does the firm fixed price contract ensure value for money over the contract's duration?
The firm fixed price (FFP) contract is designed to provide the government with cost certainty by locking in the price regardless of the contractor's actual costs. This structure is highly effective in ensuring value for money, as it shifts the risk of cost overruns to the contractor. For the M240B contract, the FFP ensures the Army pays the agreed-upon price, making budgeting more predictable and preventing unexpected increases.
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: $18,063,402
Exercised Options: $18,063,402
Current Obligation: $18,063,402
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52H0907D0319
IDV Type: IDC
Timeline
Start Date: 2008-07-24
Current End Date: 2011-05-31
Potential End Date: 2011-05-31 00:00:00
Last Modified: 2011-11-20
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