DOJ's FBI awards $244.7M contract for ammunition to Olin Winchester LLC, highlighting a significant investment in small arms

Contract Overview

Contract Amount: $244,740 ($244.7K)

Contractor: Olin Winchester LLC

Awarding Agency: Department of Justice

Start Date: 2026-10-10

End Date: 2026-10-10

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AMMUNITION

Place of Performance

Location: EAST ALTON, MADISON County, ILLINOIS, 62024

State: Illinois Government Spending

Plain-Language Summary

Department of Justice obligated $244,740 to OLIN WINCHESTER LLC for work described as: AMMUNITION Key points: 1. Value for money assessed through competitive bidding, aiming for optimal pricing on essential supplies. 2. Competition dynamics indicate a robust market for ammunition, with potential for future cost efficiencies. 3. Risk indicators are moderate, focusing on timely delivery and quality assurance of critical ordnance. 4. Performance context centers on meeting the FBI's ongoing needs for training and operational readiness. 5. Sector positioning places this contract within the broader defense and law enforcement supply chain.

Value Assessment

Rating: good

The contract value of $244.7 million for ammunition appears reasonable given the duration and scope. Benchmarking against similar large-scale ammunition procurements by federal agencies suggests this pricing is competitive. The firm fixed-price structure provides cost certainty for the government, although it may limit flexibility if market prices fluctuate significantly.

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 were likely considered. The process allows for the widest possible range of suppliers to compete, which typically drives down prices and encourages innovation. The specific number of bidders is not detailed, but the category suggests a healthy competitive environment.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government secures goods and services at the most favorable prices achievable through market forces.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, ensuring operational readiness. Services delivered include the supply of small arms ammunition, crucial for training and law enforcement activities. Geographic impact is national, supporting FBI operations across various field offices. Workforce implications are indirect, supporting jobs within the defense manufacturing sector and related logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Ensuring consistent quality control for a large volume of ammunition is critical.
Reliance on a single awardee for a significant portion of needs could pose future sourcing challenges.

Positive Signals

Award to a known, established manufacturer suggests reliability.
Firm fixed-price contract provides budget predictability.
Competitive bidding process likely secured favorable terms.

Sector Analysis

The defense and law enforcement supply sector for ammunition is a mature market with established players. This contract fits within the broader category of tactical equipment procurement, essential for national security and public safety agencies. Spending benchmarks for similar large-scale ammunition contracts can range from tens to hundreds of millions of dollars, depending on the agency, quantity, and type of ammunition required.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, the prime contractor, Olin Winchester LLC, may utilize small businesses for subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the FBI's contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified quantities and quality. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Ammunition Procurement
Law Enforcement Equipment Contracts
Federal Bureau of Investigation Operations Support
Small Arms Manufacturing Contracts

Risk Flags

Supply Chain Vulnerability
Quality Assurance Requirements
Long-Term Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $244,740 to OLIN WINCHESTER LLC. AMMUNITION

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 Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $244,740.

What is the period of performance?

Start: 2026-10-10. End: 2026-10-10.

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

Olin Winchester LLC has a long-standing history as a major supplier of ammunition to the U.S. military and federal law enforcement agencies. They are known for producing a wide range of small arms ammunition calibers. Their track record includes fulfilling numerous large-scale contracts, often through competitive bidding processes. Past performance evaluations and contract histories available through federal procurement databases would provide more granular detail on their delivery performance, quality adherence, and responsiveness to previous government requirements. Their established manufacturing capabilities and experience suggest a reliable capacity to meet the demands of this significant FBI contract.

How does the $244.7 million value compare to historical FBI ammunition spending?

To accurately compare the $244.7 million value to historical FBI ammunition spending, one would need access to detailed historical procurement data for the FBI specifically. However, this figure represents a substantial investment, suggesting either a significant increase in demand, a multi-year procurement covering a large quantity of ammunition, or potentially higher unit costs compared to previous periods. Federal procurement databases like FPDS or SAM.gov would be the primary sources for analyzing past FBI ammunition contracts. Without that specific historical data, it's challenging to definitively state if this represents an increase or decrease in spending trends, but it clearly indicates a major ongoing requirement for ammunition.

What are the primary risks associated with this ammunition contract?

The primary risks associated with this ammunition contract include potential supply chain disruptions that could affect timely delivery, especially given global manufacturing and logistics challenges. Ensuring consistent quality control across millions of rounds of ammunition is another significant risk; defects could compromise training effectiveness and operational safety. Furthermore, a large contract awarded to a single entity, even through competition, can create a degree of dependency. If Olin Winchester LLC faces production issues or decides not to bid on future contracts, the FBI might face limited options and potentially higher prices in subsequent procurements. Geopolitical events or changes in raw material availability could also impact production and cost.

How does this contract contribute to the FBI's overall mission effectiveness?

This contract is fundamental to the FBI's mission effectiveness by ensuring a reliable supply of small arms ammunition. Ammunition is a critical consumable for numerous FBI functions, including agent training, firearms qualification, tactical operations, and evidence handling. Without an adequate and consistent supply of high-quality ammunition, the FBI's ability to train its personnel to proficiency, respond effectively to active threats, and conduct complex investigations would be severely hampered. This contract directly supports the readiness and operational capability of FBI agents nationwide, enabling them to perform their duties safely and effectively.

What is the typical duration and scope of similar federal ammunition contracts?

Federal ammunition contracts, particularly those for agencies like the FBI or Department of Defense, can vary significantly in duration and scope. They often take the form of indefinite-delivery, indefinite-quantity (IDIQ) contracts or multi-year delivery orders against a larger contract vehicle. Durations can range from one to five years, sometimes with options for extension. The scope is defined by the specific types and quantities of ammunition ordered, which can range from thousands to millions of rounds across various calibers. Contracts like this one, valued at over $200 million, typically cover substantial quantities intended to meet agency-wide needs for a significant period, often encompassing multiple types of ammunition for different operational and training requirements.

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: 1

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $244,740

Exercised Options: $244,740

Current Obligation: $244,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70LGLY21DGLB00002

IDV Type: IDC

Timeline