DOJ's $20M ammunition contract awarded to Olin Winchester LLC for small arms ammunition

Contract Overview

Contract Amount: $20,023 ($20.0K)

Contractor: Olin Winchester LLC

Awarding Agency: Department of Justice

Start Date: 2026-05-25

End Date: 2026-05-25

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: .556/.223 AMMUNITION FROM OLIIN WINCHESTER LLC SAM UEI#: MXB2U9UM7TL5 CONTRACT#: 70LGLY25DGLB00001 PRODUCT NUMBER: USA223R1DH

Place of Performance

Location: EAST ALTON, MADISON County, ILLINOIS, 62024

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $20,023.2 to OLIN WINCHESTER LLC for work described as: .556/.223 AMMUNITION FROM OLIIN WINCHESTER LLC SAM UEI#: MXB2U9UM7TL5 CONTRACT#: 70LGLY25DGLB00001 PRODUCT NUMBER: USA223R1DH Key points: 1. Value for money appears reasonable given the firm fixed-price contract type and the nature of ammunition procurement. 2. Competition dynamics indicate a full and open competition, suggesting a healthy market for this type of defense supply. 3. Risk indicators are low due to the established nature of the product and the contractor's experience. 4. Performance context is tied to the Federal Prison System's need for small arms ammunition. 5. Sector positioning places this contract within the defense industrial base, specifically small arms ammunition manufacturing.

Value Assessment

Rating: good

The contract value of $20.02 million for ammunition is within expected ranges for federal procurements of this nature. As a firm fixed-price contract, the pricing is established upfront, providing cost certainty. Benchmarking against similar contracts for small arms ammunition would require access to detailed pricing data for specific calibers and quantities, but the overall value appears aligned with market rates for bulk ammunition purchases.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of five bidders suggests a competitive environment for this procurement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by leveraging market forces to secure the best possible pricing and quality for essential supplies like ammunition.

Public Impact

The Federal Prison System benefits from a reliable supply of ammunition for training and operational needs. Services delivered include the provision of small arms ammunition, crucial for maintaining security and operational readiness within correctional facilities. The geographic impact is primarily within Illinois, where Olin Winchester LLC is located, but the end-use is federal correctional facilities nationwide. Workforce implications include continued employment and potential expansion at Olin Winchester's manufacturing facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials impacting long-term cost-effectiveness.
Dependence on a single supplier for a critical component could pose a supply chain risk if not managed proactively.

Positive Signals

Award to an established manufacturer with a proven track record in ammunition production.
Firm fixed-price contract provides cost certainty for the duration of the delivery order.
Full and open competition suggests a robust market and potential for competitive pricing.

Sector Analysis

The small arms ammunition manufacturing sector is a critical component of the defense industrial base. This contract falls within the broader manufacturing industry, specifically focusing on ordnance and ammunition. The market is characterized by a few large, established players and a need for consistent government demand to maintain production capabilities. Comparable spending benchmarks would be difficult to ascertain without specific product details, but federal agencies are significant consumers of ammunition.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Olin Winchester LLC, a large established company, suggests that the primary focus was on meeting the government's requirements through a competitive process that may not have prioritized small business participation for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Justice's procurement oversight mechanisms and the Federal Prison System's internal controls. Accountability is ensured through the firm fixed-price contract terms and delivery schedules. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Ammunition Procurements
Federal Bureau of Investigation Ammunition Contracts
U.S. Marshals Service Ammunition Needs
Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Ammunition Procurements

Risk Flags

Potential for price volatility in raw materials.
Supply chain dependency on key components.
Ensuring consistent quality across large production runs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $20,023.2 to OLIN WINCHESTER LLC. .556/.223 AMMUNITION FROM OLIIN WINCHESTER LLC SAM UEI#: MXB2U9UM7TL5 CONTRACT#: 70LGLY25DGLB00001 PRODUCT NUMBER: USA223R1DH

Who is the contractor on this award?

The obligated recipient is OLIN WINCHESTER LLC.

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 $20,023.2.

What is the period of performance?

Start: 2026-05-25. End: 2026-05-25.

What is Olin Winchester LLC's track record with federal contracts, particularly for ammunition?

Olin Winchester LLC, a well-established entity in ammunition manufacturing, has a significant history of supplying the U.S. government. While specific details of all past contracts are not provided here, their role as a major supplier, including for military-grade ammunition, indicates a substantial track record. Federal agencies, including the Department of Defense and various law enforcement agencies, have historically relied on Olin Winchester for their ammunition needs. This long-standing relationship suggests a capacity to meet stringent quality, quantity, and delivery requirements, though a comprehensive review would involve examining past performance evaluations and any documented issues.

How does the unit price of this ammunition compare to similar federal contracts or market rates?

The provided data does not include specific unit pricing for the ammunition (e.g., price per round for .556 or .223 caliber). The total contract value is $20.02 million. To benchmark unit prices, one would need to know the exact quantities of each type of ammunition procured. Without this information, a direct comparison to similar federal contracts or market rates is not possible. However, the firm fixed-price nature of the contract implies that the price per unit was agreed upon at the time of award, and the competitive bidding process aims to secure favorable rates.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential supply chain disruptions for raw materials (propellants, primers, casings), fluctuations in market prices for these components, and ensuring consistent quality control for a large volume of ammunition. Mitigation strategies likely involve Olin Winchester's established supplier relationships, inventory management, and robust quality assurance processes. The firm fixed-price contract also mitigates financial risk for the government by locking in the price. The government's mitigation also includes the competitive award process, ensuring a capable supplier is chosen.

How effective is the Federal Prison System in managing its ammunition inventory and usage?

The effectiveness of the Federal Prison System (FPS) in managing its ammunition inventory and usage is not directly detailed in this contract award. However, the FPS, as part of the Bureau of Prisons, operates under strict protocols for the procurement, storage, and use of firearms and ammunition. This includes requirements for regular training, qualification, and the maintenance of armories. The issuance of this delivery order suggests a need based on established inventory management and operational requirements. Further assessment would require reviewing FPS internal audit reports, usage data, and training effectiveness metrics.

What are the historical spending patterns for small arms ammunition by the Department of Justice?

Historical spending patterns for small arms ammunition by the Department of Justice (DOJ) are substantial, reflecting the needs of its various components, including the Federal Prison System, U.S. Marshals Service, and law enforcement agencies like the FBI and ATF. While specific aggregate figures for the DOJ are not provided here, annual spending on ammunition across federal law enforcement and correctional agencies typically runs into tens or hundreds of millions of dollars. This spending is influenced by factors such as the number of personnel requiring firearms, training frequency, operational deployments, and the types of ammunition required. Contracts like this one represent a portion of that ongoing, significant expenditure.

What is the significance of the 'st': 'IL' and 'sn': 'ILLINOIS' designation in the contract data?

The 'st': 'IL' and 'sn': 'ILLINOIS' designations indicate the state where the contractor, Olin Winchester LLC, is located or where the contract is being administered from. In this case, it signifies that Olin Winchester LLC's relevant facility or business operations are based in Illinois. This information is often relevant for tracking economic impact, understanding logistical considerations, and sometimes for state-specific reporting requirements, although for a federal contract, the primary focus remains on the federal agency's needs and the contractor's performance regardless of location.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Olin Corporation

Address: 600 POWDER MILL RD, EAST ALTON, IL, 62024

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

Financial Breakdown

Contract Ceiling: $20,023

Exercised Options: $20,023

Current Obligation: $20,023

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70LGLY25DGLB00002

IDV Type: IDC

Timeline