DOJ's $9.7M Ammunition Purchase from Combined Systems Inc. Raises Questions on Competition and Value

Contract Overview

Contract Amount: $9,723 ($9.7K)

Contractor: Combined Systems Inc

Awarding Agency: Department of Justice

Start Date: 2026-04-07

End Date: 2026-09-30

Contract Duration: 176 days

Daily Burn Rate: $55/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LESS LETHAL AMMUNITION FCI CUMBERLAND

Place of Performance

Location: JAMESTOWN, MERCER County, PENNSYLVANIA, 16134

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $9,723.38 to COMBINED SYSTEMS INC for work described as: LESS LETHAL AMMUNITION FCI CUMBERLAND Key points: 1. The contract was awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The firm fixed-price contract type shifts risk to the government, especially if unforeseen issues arise. 3. The duration of the contract (176 days) is relatively short, suggesting a specific, immediate need. 4. The product falls under 'Ammunition (except Small Arms) Manufacturing,' a niche but critical supply category. 5. The award to a single vendor without competition warrants scrutiny regarding best value for taxpayer funds. 6. The lack of small business involvement is noted, as the contract was not set aside.

Value Assessment

Rating: questionable

Benchmarking the value of this $9.7 million purchase is challenging due to the lack of competitive bidding. Without multiple offers, it's difficult to ascertain if Combined Systems Inc. provided the most cost-effective solution. The firm fixed-price nature means the government bears the risk of cost overruns if the contractor's estimates are inaccurate. Further analysis would require comparing pricing to similar ammunition procurements by other agencies or to market rates for comparable products, which are not readily available in this dataset.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded under 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), indicating it was not openly competed. The absence of a competitive process means only one vendor, Combined Systems Inc., was considered. This limits the government's ability to leverage market forces to secure the best possible price and terms. The rationale for not competing this requirement is not provided, which is a key factor in assessing the procurement's integrity.

Taxpayer Impact: The lack of competition means taxpayers may not have received the lowest possible price for this ammunition. Without a bidding process, there's less pressure on the contractor to offer competitive rates, potentially leading to higher overall spending.

Public Impact

Federal Prison System personnel will benefit from the supply of less lethal ammunition for operational needs. The ammunition is intended for use within correctional facilities managed by the Bureau of Prisons. The geographic impact is primarily within federal correctional institutions nationwide, wherever the ammunition is deployed. The contract supports the manufacturing sector for defense and security-related products.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competitive bidding may result in inflated prices.
Firm fixed-price contract shifts cost overrun risk to the government.
Limited transparency on the justification for sole-source award.
No indication of small business participation or subcontracting opportunities.

Positive Signals

Award to an established manufacturer (Combined Systems Inc.) suggests potential for reliable supply.
Firm fixed-price contract provides cost certainty if contractor's estimates are accurate.
Specific product category (less lethal ammunition) addresses a defined security need.

Sector Analysis

The procurement falls within the defense and security manufacturing sector, specifically focusing on ammunition. The North American Industry Classification System (NAICS) code 332993 covers Ammunition (except Small Arms) Manufacturing. This is a specialized area where a limited number of manufacturers may exist. The total federal spending on this category can fluctuate based on security needs and policy changes. Without competitive bidding, it's difficult to benchmark this specific $9.7 million award against broader market trends or comparable government contracts.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there any indication of subcontracting requirements for small businesses. The award was made directly to Combined Systems Inc. without a competitive process that typically includes provisions for small business participation. This suggests that small businesses were not actively solicited or considered for this specific procurement, potentially limiting their opportunities within this contract's scope.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's internal procurement regulations and the Federal Prison System's contracting office. The specific justification for the sole-source award and the evaluation process (or lack thereof) would be subject to internal review. Transparency is limited due to the non-competitive nature of the award. The Inspector General for the Department of Justice could investigate procurement irregularities if concerns arise.

Related Government Programs

Department of Justice Procurement
Federal Prison System Contracts
Less Lethal Munitions Procurement
Ammunition Manufacturing Contracts

Risk Flags

Non-competitive award raises concerns about price fairness.
Lack of small business participation noted.
Firm fixed-price contract shifts risk to the government.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9,723.38 to COMBINED SYSTEMS INC. LESS LETHAL AMMUNITION FCI CUMBERLAND

Who is the contractor on this award?

The obligated recipient is COMBINED SYSTEMS INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $9,723.38.

What is the period of performance?

Start: 2026-04-07. End: 2026-09-30.

What is the track record of Combined Systems Inc. in supplying ammunition to the federal government?

Combined Systems Inc. has a history of supplying defense and security products, including ammunition, to various government entities. While specific details on past federal contracts are not provided in this data snippet, their designation as a manufacturer in this sector suggests prior experience. A deeper dive into federal procurement databases (like FPDS or SAM.gov) would reveal the extent and nature of their previous awards, including contract values, performance history, and any reported issues. Understanding their past performance is crucial for assessing the reliability and quality of their current supply to the Federal Prison System.

How does the $9.7 million value compare to similar federal ammunition procurements?

Direct comparison of the $9.7 million value is difficult without knowing the exact specifications, quantity, and type of ammunition procured. Federal ammunition contracts can range significantly in value, from small purchases for training to large-scale procurements for operational use. However, a $9.7 million award for a specific type of ammunition, especially when awarded non-competitively, warrants scrutiny. Benchmarking would require identifying contracts for similar 'less lethal ammunition' or specific caliber rounds awarded competitively to establish a price-per-unit or total value range. The absence of competition here makes a direct value assessment problematic.

What are the primary risks associated with this firm fixed-price contract?

The primary risk with a firm fixed-price (FFP) contract, especially one awarded non-competitively, is that the government may overpay if the contractor's cost estimates were too high or if market prices decrease post-award. While FFP contracts provide cost certainty for the government regarding the final price, they shift the risk of cost overruns to the contractor. However, in a sole-source scenario, the government lacks the leverage to ensure the contractor's price is truly competitive. If the contractor faces unexpected production issues or material cost increases, they might seek modifications or deliver subpar quality, though the FFP structure aims to prevent this.

What is the justification for awarding this contract on a non-competitive basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP' (Simplified Acquisition Procedures), implying a sole-source or limited competition award. The specific justification for this non-competitive award is not detailed in the data. Typically, such justifications might include urgency of need, lack of available sources, or specific technical requirements that only one vendor can meet. Without this explicit justification, it's impossible to fully assess the necessity of bypassing the standard competitive bidding process, which is designed to ensure best value and fair pricing for taxpayers.

What is the expected performance period and delivery timeline for this ammunition?

The contract has a performance start date of April 7, 2026, and an end date of September 30, 2026. This results in a performance duration of approximately 176 days. This relatively short timeframe suggests that the procurement is intended to fulfill an immediate or near-term need for less lethal ammunition within the Federal Prison System, rather than a long-term strategic supply agreement. The specific delivery schedule within this period would be detailed in the contract's line items or delivery orders.

How does this contract align with the Federal Prison System's overall spending on security equipment?

This $9.7 million contract for less lethal ammunition represents a specific component of the Federal Prison System's (FPS) broader spending on security equipment and operational necessities. FPS budgets encompass a wide range of items, including facility maintenance, personnel, inmate services, and various security technologies and supplies. Ammunition purchases, particularly less lethal options, are critical for maintaining order and safety within correctional facilities. Analyzing this contract's alignment would require comparing its value to the FPS's total annual budget for security supplies and understanding the strategic importance of less lethal options in their operational doctrine.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 388 KINSMAN RD, JAMESTOWN, PA, 16134

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $9,723

Exercised Options: $9,723

Current Obligation: $9,723

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline