DOJ's $837,900 9mm Ammunition Purchase for US Marshals Service via Full and Open Competition

Contract Overview

Contract Amount: $83,790 ($83.8K)

Contractor: Hornady Manufacturing Company

Awarding Agency: Department of Justice

Start Date: 2026-04-02

End Date: 2026-11-30

Contract Duration: 242 days

Daily Burn Rate: $346/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MISSION CRITICAL: APPREHENDING FUGITIVES FY26 D77 NTX 9MM AMMUNITION

Place of Performance

Location: GRAND ISLAND, HALL County, NEBRASKA, 68802

State: Nebraska Government Spending

Plain-Language Summary

Department of Justice obligated $83,790 to HORNADY MANUFACTURING COMPANY for work described as: MISSION CRITICAL: APPREHENDING FUGITIVES FY26 D77 NTX 9MM AMMUNITION Key points: 1. Significant quantity of 9mm ammunition procured for critical fugitive apprehension missions. 2. Competition method indicates potential for competitive pricing, though specific benchmarks are absent. 3. Risk is moderate, tied to supply chain reliability and potential price fluctuations for ammunition. 4. Spending falls within the broad 'Defense' or 'Public Safety' sectors, requiring specific benchmarks.

Value Assessment

Rating: fair

The contract is a firm-fixed-price delivery order for ammunition. Without specific per-unit cost data or historical contract comparisons, assessing value is difficult. The price of $837,900 for 332,992 rounds suggests a per-unit cost of approximately $2.52, which needs market validation.

Cost Per Unit: $2.52

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited solicitations.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best possible price for necessary ammunition.

Public Impact

Ensures US Marshals Service has critical ammunition for fugitive apprehension operations. Supports law enforcement readiness and public safety by maintaining essential supplies. Procurement process aims for cost-effectiveness through competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Ammunition price volatility
Supply chain disruptions
Limited historical cost data for comparison

Positive Signals

Full and open competition utilized
Firm-fixed-price contract type
Mission critical requirement

Sector Analysis

This procurement falls under the category of small arms ammunition, often associated with defense or public safety sectors. Benchmarks for ammunition pricing can vary significantly based on caliber, quantity, manufacturer, and market conditions.

Small Business Impact

The data indicates that Hornady Manufacturing Company, the awardee, is not a small business. There is no specific information provided regarding set-asides for small businesses in this particular procurement.

Oversight & Accountability

The Department of Justice, specifically the U.S. Marshals Service, is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and accountability.

Related Government Programs

Small Arms Ammunition Manufacturing
Department of Justice Contracting
U.S. Marshals Service Programs

Risk Flags

Potential for price increases in future solicitations
Dependence on a single supplier for critical item
Lack of detailed cost breakdown for transparency
Limited data on small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $83,790 to HORNADY MANUFACTURING COMPANY. MISSION CRITICAL: APPREHENDING FUGITIVES FY26 D77 NTX 9MM AMMUNITION

Who is the contractor on this award?

The obligated recipient is HORNADY MANUFACTURING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $83,790.

What is the period of performance?

Start: 2026-04-02. End: 2026-11-30.

What is the historical cost trend for 9mm ammunition of similar quality and quantity to assess if the current price is competitive over time?

Analyzing historical cost trends for 9mm ammunition is crucial for determining competitive pricing. Factors like raw material costs (lead, copper), manufacturing capacity, and overall market demand significantly influence price fluctuations. Without access to historical data for this specific contract or similar government procurements, it's challenging to definitively state if $2.52 per round represents a favorable price point compared to past acquisitions or market averages.

What are the specific risks associated with relying on a single manufacturer for mission-critical ammunition, even under full and open competition?

Even with full and open competition, relying on a single manufacturer for mission-critical items like ammunition carries inherent risks. These include potential supply chain disruptions due to unforeseen events (natural disasters, geopolitical issues, labor strikes), production capacity limitations, or the manufacturer prioritizing other contracts. Diversifying suppliers or maintaining strategic reserves could mitigate these risks, ensuring operational continuity for the U.S. Marshals Service.

How effectively does the current ammunition stock and this procurement align with the projected operational needs and threat landscape for the U.S. Marshals Service?

The effectiveness of this procurement hinges on its alignment with the U.S. Marshals Service's projected operational needs and the evolving threat landscape. While the quantity (332,992 rounds) suggests a substantial supply, its adequacy depends on factors like training frequency, deployment tempo, and anticipated operational demands. Regular reviews of ammunition consumption rates and threat assessments are necessary to ensure this procurement contributes effectively to mission readiness.

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

Address: 3625 W OLD POTASH HWY, GRAND ISLAND, NE, 68803

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

Financial Breakdown

Contract Ceiling: $83,790

Exercised Options: $83,790

Current Obligation: $83,790

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15F06722D0004288

IDV Type: IDC

Timeline