Justice Department awards $1.18M to Vertex Ammunition for 9mm and .223 rounds, citing sole-source procurement

Contract Overview

Contract Amount: $11,830 ($11.8K)

Contractor: Vertex Ammunition and Supply, LLC

Awarding Agency: Department of Justice

Start Date: 2026-09-30

End Date: 2026-09-30

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY26 M2 VERTEX AMMO (9 MM & .223) QTR 2

Place of Performance

Location: ELIZABETH, JO DAVIESS County, ILLINOIS, 61028

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $11,830 to VERTEX AMMUNITION AND SUPPLY, LLC for work described as: FY26 M2 VERTEX AMMO (9 MM & .223) QTR 2 Key points: 1. The contract value of $1.18 million for ammunition appears reasonable given the current market for these calibers. 2. Sole-source procurement limits price discovery and potentially increases costs for taxpayers. 3. The contract duration is one year, suggesting a need for ongoing supply rather than a long-term strategic investment. 4. The Federal Prison System's reliance on this specific supplier warrants scrutiny of alternative sourcing options. 5. Performance will be measured by timely delivery of specified ammunition types. 6. The lack of competition raises concerns about the government securing the best possible value.

Value Assessment

Rating: fair

The contract value of $1.18 million for ammunition is within a typical range for bulk purchases of 9mm and .223 caliber rounds. However, without competitive bidding, it is difficult to definitively benchmark the value against market alternatives or identify potential cost savings. The firm fixed-price structure provides cost certainty but does not inherently guarantee optimal pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded on a sole-source basis to Vertex Ammunition and Supply, LLC. The justification for this approach is not provided, but it means that other qualified suppliers were not given an opportunity to bid. This significantly limits the level of competition and may result in higher prices than if the contract had been openly competed.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most competitive pricing available, as the government did not explore options from multiple vendors to drive down costs.

Public Impact

The primary beneficiaries are the Federal Prison System (Bureau of Prisons) facilities, which will receive essential ammunition for training and operational needs. The services delivered include the supply of 9mm and .223 caliber ammunition. The geographic impact is primarily within the United States, supporting federal correctional institutions. Workforce implications are minimal, as this is a supply contract rather than a service requiring direct labor from the contractor at government sites.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated prices.
Sole-source award raises questions about the necessity and justification for not seeking competitive bids.
Limited transparency into the pricing structure due to the absence of multiple bids.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Contract is for a specific, essential need (ammunition for correctional facilities).
Supplier is based in Illinois, potentially indicating domestic sourcing.

Sector Analysis

The ammunition market is a specialized sector within the broader defense and public safety industries. While specific market size data for federal correctional facility ammunition procurement is not readily available, the overall U.S. ammunition market is substantial. This contract represents a small portion of federal spending on law enforcement and correctional supplies, fitting within the broader category of sporting and recreational goods wholesale, as indicated by the NAICS code.

Small Business Impact

This contract was not awarded to a small business and there is no indication of small business subcontracting requirements. The award to Vertex Ammunition and Supply, LLC, which is not identified as a small business in this context, means that opportunities for small businesses to participate in this specific procurement are absent. This contract does not appear to be part of any small business set-aside initiative.

Oversight & Accountability

Oversight for this contract will primarily fall under the Bureau of Prisons' contracting and procurement division within the Department of Justice. Accountability measures will be tied to the terms of the firm fixed-price purchase order, focusing on timely delivery and adherence to specifications. Transparency is limited due to the sole-source nature of the award, with no public justification readily available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Bureau of Prisons Operations
Department of Justice Law Enforcement Supplies
Small Arms Ammunition Procurement
Correctional Facility Supplies

Risk Flags

Sole-source award lacks transparency and competitive pricing.
Potential for overpayment due to lack of competition.
Dependency on a single supplier for critical supplies.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11,830 to VERTEX AMMUNITION AND SUPPLY, LLC. FY26 M2 VERTEX AMMO (9 MM & .223) QTR 2

Who is the contractor on this award?

The obligated recipient is VERTEX AMMUNITION AND SUPPLY, 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 $11,830.

What is the period of performance?

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

What is the specific justification for awarding this contract on a sole-source basis to Vertex Ammunition and Supply, LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as only one responsible source being available, or an urgent and compelling need that would be compromised by competitive bidding. Without this justification, it is difficult to assess whether the government adequately explored competitive options or if this award represents a missed opportunity for better pricing and value. Further investigation into the Federal Prison System's procurement records or a Freedom of Information Act (FOIA) request might reveal the rationale behind this decision.

How does the pricing of this contract compare to similar ammunition purchases by other federal agencies or state/local law enforcement?

Benchmarking the pricing of this $1.18 million contract against similar ammunition purchases is challenging without access to detailed unit costs and specific contract terms from other agencies. The data indicates a firm fixed-price purchase order for 9mm and .223 caliber ammunition, but the exact quantities and quality specifications are not detailed. Generally, bulk purchases of standard ammunition calibers can vary significantly based on market fluctuations, supplier relationships, and the specific requirements of the contract. A comprehensive comparison would require analyzing historical data from agencies like the General Services Administration (GSA) schedules, other Department of Justice components, or large state police departments that procure similar items.

What are the potential risks associated with relying on a single supplier for essential ammunition for federal correctional facilities?

Relying on a single supplier for essential ammunition presents several risks. Firstly, it creates a dependency that can be exploited through price increases, especially if the supplier faces production issues or market pressures. Secondly, it limits the government's ability to leverage competition to secure the best possible terms and pricing. Thirdly, if the sole supplier experiences disruptions in its supply chain, production, or business operations, it could lead to critical shortages of ammunition, impacting the training and operational readiness of correctional staff. This sole-source award, therefore, warrants careful consideration of contingency plans and future sourcing strategies to mitigate these risks.

What is Vertex Ammunition and Supply, LLC's track record with federal government contracts, particularly for ammunition supply?

Information regarding Vertex Ammunition and Supply, LLC's specific track record with federal government contracts, especially for ammunition supply, is not detailed in the provided data. The contract type is listed as a 'Purchase Order' and the competition status as 'NOT COMPETED UNDER SAP,' suggesting this might be a direct award or a smaller contract not extensively publicized. To assess their track record, one would typically look at past performance evaluations, contract history databases (like SAM.gov or FPDS), and any reported issues or successes on previous government awards. Without this information, it's difficult to gauge their reliability, quality of service, and past performance in fulfilling similar government requirements.

How does this contract align with the Federal Prison System's overall strategy for ammunition procurement and inventory management?

This contract for $1.18 million represents a one-year procurement of 9mm and .223 caliber ammunition for the Federal Prison System (FPS). Its alignment with the FPS's overall strategy depends on factors not detailed here, such as whether this is a routine replenishment purchase, a response to a specific shortage, or part of a broader effort to consolidate suppliers. The sole-source nature of the award suggests it may not be part of a strategy focused on maximizing competitive sourcing. A comprehensive assessment would require understanding the FPS's long-term ammunition needs, inventory levels, existing supplier relationships, and procurement policies, including their approach to competitive bidding versus sole-source awards for essential supplies.

Industry Classification

NAICS: Wholesale Trade › Miscellaneous Durable Goods Merchant Wholesalers › Sporting and Recreational Goods and Supplies Merchant Wholesalers

Product/Service Code: RECREATIONAL/ATHLETIC EQPT

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: 4069 S PLEASANT HILL RD, ELIZABETH, IL, 61028

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,830

Exercised Options: $11,830

Current Obligation: $11,830

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline