VA awards $135.4M for ammunition, with 9 bidders vying for the contract

Contract Overview

Contract Amount: $135,400 ($135.4K)

Contractor: RED List Group, LLC, the

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2027-04-30

Contract Duration: 729 days

Daily Burn Rate: $186/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AMMUNITION

Place of Performance

Location: CARROLLTON, DENTON County, TEXAS, 75010

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $135,400 to RED LIST GROUP, LLC, THE for work described as: AMMUNITION Key points: 1. The contract value represents a significant investment in ensuring the availability of essential supplies. 2. A competitive bidding process with 9 participants suggests a healthy market for this type of procurement. 3. The firm-fixed-price structure aims to provide cost certainty for the government. 4. The duration of the contract indicates a long-term need for these supplies. 5. The geographic location of the contractor in Texas may have implications for logistics and delivery. 6. The absence of a small business set-aside means the competition was open to all qualified vendors.

Value Assessment

Rating: good

Benchmarking the per-unit cost of ammunition is challenging without specific item details. However, the presence of 9 bidders in a full and open competition suggests that the pricing is likely competitive. The firm-fixed-price award type helps manage cost risks for the Department of Veterans Affairs. The total award amount of $135.4 million over two years indicates a substantial but potentially reasonable investment for sustained supply.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that all responsible sources were permitted to submit a bid. The participation of 9 bidders suggests a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition observed in this procurement is beneficial for taxpayers, as it likely drove down prices and ensured the government received the best value for its investment in ammunition.

Public Impact

Veterans and VA medical facilities will benefit from the reliable supply of ammunition for various operational needs. The contract supports the manufacturing sector, specifically small arms ammunition production. The primary geographic impact is within Texas, where the contractor is located, potentially creating or sustaining jobs. The contract ensures the operational readiness of the VA's law enforcement and security personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations if raw material costs increase significantly over the contract term.
Ensuring consistent quality control across all delivered ammunition batches is critical.
Logistical challenges in timely delivery from Texas to various VA facilities nationwide.

Positive Signals

The firm-fixed-price contract provides cost predictability for the VA.
A high number of bidders (9) indicates a competitive market and potential for good value.
The contract duration of two years allows for stable supply chain management.

Sector Analysis

The defense and security sector relies heavily on a consistent supply of ammunition. This contract falls under the broader category of defense manufacturing and procurement. The North American Industry Classification System (NAICS) code 332992, Small Arms Ammunition Manufacturing, represents a specialized segment of the industrial base. Spending in this area is critical for national security and the operational capabilities of government agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The competition was open to all qualified vendors, which may limit direct opportunities for small businesses unless they are prime contractors or part of a larger bidding team. The absence of a set-aside means the primary focus was on securing the best overall offer.

Oversight & Accountability

The Department of Veterans Affairs has established oversight mechanisms for contract performance, including regular reviews and performance assessments. Accountability is maintained through the contract terms and conditions, with potential remedies for non-performance. Transparency is facilitated through contract award databases and reporting requirements. The VA Office of Inspector General may provide additional oversight if specific concerns arise regarding waste, fraud, or abuse.

Related Government Programs

Department of Defense Ammunition Procurement
Federal Law Enforcement Supply Contracts
Small Arms Manufacturing Contracts
Government Supply Chain Management

Risk Flags

Potential for supply chain disruptions
Volatility in raw material costs
Ensuring consistent ammunition quality
Logistical challenges for delivery

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $135,400 to RED LIST GROUP, LLC, THE. AMMUNITION

Who is the contractor on this award?

The obligated recipient is RED LIST GROUP, LLC, THE.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $135,400.

What is the period of performance?

Start: 2025-05-01. End: 2027-04-30.

What is the historical spending pattern for ammunition by the Department of Veterans Affairs?

Analyzing historical spending for ammunition by the Department of Veterans Affairs (VA) requires access to detailed procurement data over multiple fiscal years. Typically, such spending would fluctuate based on operational needs, inventory levels, and specific program requirements. Without direct access to historical VA procurement databases, it's difficult to provide precise figures. However, agencies like the VA, which have law enforcement and security personnel, maintain a consistent need for ammunition. Spending patterns are often influenced by factors such as changes in security protocols, the number of personnel requiring firearms, and the types of ammunition mandated for use. It is common for such contracts to be re-competed periodically, with award values varying based on market conditions and the scope of the requirement at the time of solicitation.

How does the number of bidders (9) compare to similar ammunition procurements?

A total of 9 bidders for an ammunition procurement contract is generally considered a healthy level of competition. For specialized items like ammunition, the number of qualified manufacturers and distributors can vary. In some cases, procurements might see fewer bidders if the requirement is highly specialized or if there are significant barriers to entry for new suppliers. Conversely, more common types of ammunition or larger quantity requirements might attract even more bidders. A range of 5-10 bidders often indicates a competitive market where the government can expect reasonable pricing and a good selection of qualified offerors. The fact that this procurement was 'full and open competition' further supports the idea that a broad base of potential suppliers was considered.

What are the primary risks associated with this ammunition supply contract?

Several risks are associated with this ammunition supply contract. Firstly, supply chain disruptions, whether due to geopolitical events, natural disasters, or manufacturing issues, could impact the timely delivery of ammunition. Secondly, fluctuations in the cost of raw materials (like metals and propellants) could affect the long-term affordability, despite the firm-fixed-price structure, if not adequately accounted for in the initial pricing. Thirdly, quality control is paramount; any defects in the ammunition could have severe operational consequences for the end-users. Finally, there's a risk related to obsolescence or changes in firearm technology that might render certain types of ammunition less relevant over the contract's lifespan, although this is less likely for standard small arms ammunition.

What is the expected impact of this contract on the ammunition market?

This contract is expected to have a positive impact on the ammunition market by providing a significant demand signal to manufacturers and suppliers. The award of $135.4 million over two years to RED LIST GROUP, LLC, indicates a substantial order that will likely support production capacity and potentially employment within the sector. For the winning contractor, it represents a significant revenue stream and a key government client. For other potential suppliers, it reinforces the ongoing demand from federal agencies, encouraging them to maintain or enhance their capabilities. The competitive nature of the bidding process also suggests that the market is robust enough to support multiple players vying for government contracts.

Are there any specific performance metrics or key performance indicators (KPIs) mentioned for this contract?

The provided data snippet does not explicitly detail specific performance metrics or Key Performance Indicators (KPIs) for this contract. However, standard government contracts of this nature typically include KPIs related to delivery timeliness, quality assurance (e.g., defect rates, adherence to specifications), and compliance with contract terms. For ammunition, critical KPIs would likely focus on meeting delivery schedules to ensure operational readiness, maintaining stringent quality control to prevent malfunctions or safety issues, and ensuring that the ammunition conforms precisely to the technical specifications outlined in the contract. The Department of Veterans Affairs would monitor these aspects throughout the contract duration.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 36C24725Q0361

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 995 SEAMIST PL APT 104, VENTURA, CA, 93003

Business Categories: Black American Owned Business, Category Business, Limited Liability Corporation, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $223,900

Exercised Options: $135,400

Current Obligation: $135,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline