DoD's $33.2M contract for 12.7mm ball rounds awarded to Global Ordnance LLC

Contract Overview

Contract Amount: $33,248,304 ($33.2M)

Contractor: Global Ordnance LLC

Awarding Agency: Department of Defense

Start Date: 2017-04-07

End Date: 2017-10-06

Contract Duration: 182 days

Daily Burn Rate: $182.7K/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: 12.7 X 108 MM BALL RDS

Place of Performance

Location: SARASOTA, MANATEE County, FLORIDA, 34243

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to GLOBAL ORDNANCE LLC for work described as: 12.7 X 108 MM BALL RDS Key points: 1. Contract value of $33.2 million for ammunition suggests significant demand. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract duration of 182 days points to a short-term supply need. 4. Fixed-price contract type aims to control costs for the government. 5. Delivery order indicates this is part of a larger indefinite-delivery contract. 6. The specific item, 12.7mm ball rounds, is critical for various military operations.

Value Assessment

Rating: good

The contract value of $33.2 million for 12.7mm ball rounds appears reasonable given the quantity and type of ammunition. Benchmarking against similar large-scale ammunition procurements would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overruns for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which suggests that while competition was sought, certain sources may have been excluded for specific reasons, potentially related to technical capabilities, security clearances, or existing relationships. The presence of 10 bidders indicates a healthy level of interest and competition for this type of defense procurement.

Taxpayer Impact: The competitive nature of the bidding process, despite potential exclusions, likely resulted in a fair market price for taxpayers. A sufficient number of bidders helps ensure that the government is not overpaying for essential munitions.

Public Impact

The primary beneficiaries are U.S. Special Operations Command (SOCOM) units requiring high-caliber ammunition for training and operational readiness. The service delivered is the supply of 12.7mm ball rounds, essential for engaging targets at extended ranges. The geographic impact is primarily within the United States, where the ammunition will be delivered to military facilities. Workforce implications are likely within the defense manufacturing sector, supporting jobs in ordnance production and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole source of raw materials is impacted.
Ensuring consistent quality control for high-volume ammunition production is critical.
Geopolitical factors could influence the availability and cost of raw materials for ammunition.

Positive Signals

Award to a single vendor for a specific quantity ensures focused production and delivery.
Firm fixed-price contract provides cost certainty for the government.
The competitive bidding process, even with exclusions, suggests a robust market for this type of munition.

Sector Analysis

The defense sector, particularly the munitions manufacturing sub-sector, is characterized by high demand, stringent quality requirements, and significant government investment. Contracts for ammunition are crucial for maintaining military readiness. Global Ordnance LLC operates within this specialized market, competing with other defense contractors for similar supply agreements. The market size for military ammunition is substantial, driven by ongoing global security needs and military modernization efforts.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, the prime contractor, Global Ordnance LLC, may engage small businesses for subcontracting opportunities related to raw material sourcing, logistics, or specialized manufacturing components. The overall impact on the small business ecosystem would depend on the extent of subcontracting awarded.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and procurement regulations. The U.S. Special Operations Command (SOCOM) would be responsible for monitoring contract performance, delivery schedules, and quality assurance. Transparency is maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Small Arms Ammunition Procurement
Ordnance and Ammunition Manufacturing
Special Operations Forces Equipment
Department of Defense Supply Chain Management

Risk Flags

Potential supply chain dependency on a single vendor.
Need for rigorous quality assurance on ammunition.
Market volatility for raw materials used in munitions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to GLOBAL ORDNANCE LLC. 12.7 X 108 MM BALL RDS

Who is the contractor on this award?

The obligated recipient is GLOBAL ORDNANCE LLC.

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 $33.2 million.

What is the period of performance?

Start: 2017-04-07. End: 2017-10-06.

What is the typical lead time for producing and delivering 12.7mm ball rounds in such quantities?

The contract duration of 182 days (approximately six months) for the delivery order suggests that this is the expected timeframe for fulfilling the specified quantity of 12.7mm ball rounds. This lead time is influenced by several factors, including the manufacturer's production capacity, the availability of raw materials (such as brass, lead, and propellant), the complexity of the manufacturing process, and the government's specific delivery schedule requirements. For large-scale ammunition procurements, lead times can vary significantly. Shorter lead times, like the 182 days here, often indicate that the contractor has existing production lines or can quickly ramp up production, or that this order is part of a larger, pre-scheduled production run. Longer lead times might be associated with more complex munitions or situations where raw material sourcing is a bottleneck.

How does the price per round compare to historical averages or other similar contracts?

Without specific unit pricing data or access to a comprehensive database of historical ammunition contracts, a direct per-round price comparison is challenging. However, the total contract value of $33.2 million for an unspecified quantity of 12.7mm ball rounds implies a certain unit cost. Factors influencing this cost include the specific type of ball round (e.g., standard, armor-piercing), manufacturing efficiencies of Global Ordnance LLC, and the competitive landscape at the time of award. Generally, large-volume government contracts aim for competitive pricing. If this contract was awarded under full and open competition with multiple bidders, it suggests the price achieved is likely aligned with market rates. Further analysis would require access to the specific quantity ordered to calculate the per-unit cost and compare it against benchmarks for similar military-grade ammunition.

What are the key performance indicators (KPIs) for this contract, and how is performance measured?

Key performance indicators (KPIs) for this ammunition supply contract would likely revolve around delivery timeliness, quality assurance, and adherence to specifications. The government, specifically U.S. Special Operations Command (SOCOM), would monitor whether Global Ordnance LLC meets the delivery schedule outlined in the contract (within the 182-day period). Quality assurance would involve rigorous testing and inspection of the delivered rounds to ensure they meet all technical specifications, including dimensions, material composition, and performance characteristics. Failure to meet these KPIs could result in penalties, contract termination, or impact future contract awards. Performance is typically measured through regular progress reports, acceptance testing of delivered goods, and compliance with contractual terms and conditions.

What is Global Ordnance LLC's track record with similar defense contracts, particularly for ammunition?

Global Ordnance LLC has a history of securing defense contracts, including those related to ammunition and ordnance. Examining their past performance on similar contracts awarded by the Department of Defense or other government agencies would provide insight into their reliability, quality control, and ability to meet delivery schedules. Information on their track record can often be found in contract award databases and performance assessment reports, if publicly available. A positive performance history on comparable contracts would indicate a lower risk associated with this current award. Conversely, any past issues with quality, delivery delays, or contract disputes would raise concerns about their capability to fulfill this $33.2 million order effectively.

What are the potential risks associated with relying on a single vendor for this specific type of ammunition?

While this contract is a delivery order, implying it might be part of a larger framework, relying on a single vendor for a critical item like 12.7mm ball rounds carries inherent risks. These include potential supply chain vulnerabilities if the vendor faces production issues, raw material shortages, or financial instability. There's also the risk of price escalation in future contracts if competition diminishes. Furthermore, a single vendor may have less incentive to innovate or offer cost reductions if they become indispensable. The government mitigates some of this risk through contract clauses, performance monitoring, and maintaining relationships with other potential suppliers for future procurements, but dependence on one source for a specific, high-demand item remains a strategic consideration.

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: 7655 MATOAKA ROAD, SARASOTA, FL, 34243

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

Financial Breakdown

Contract Ceiling: $33,248,304

Exercised Options: $33,248,304

Current Obligation: $33,248,304

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222216G0004

IDV Type: BOA

Timeline