DHS Awards $9.6M Contract for 20mm Systems to MSI Defense Solutions for Hellenic Navy
Contract Overview
Contract Amount: $9,596,699 ($9.6M)
Contractor: MSI Defense Solutions LLC
Awarding Agency: Department of Homeland Security
Start Date: 2023-12-14
End Date: 2026-06-01
Contract Duration: 900 days
Daily Burn Rate: $10.7K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE AND INSTALLATION OF 20MM ON FMS EDA GR-P-SCN EX-USCGC CUTTERS GREECE. THE 20MM SYSTEM IS BEING BUILD IN ITALY AND SHIPPED TO GREECE FOR THE HELLENIC NAVY.
Place of Performance
Location: MOORESVILLE, IREDELL County, NORTH CAROLINA, 28117
Plain-Language Summary
Department of Homeland Security obligated $9.6 million to MSI DEFENSE SOLUTIONS LLC for work described as: PURCHASE AND INSTALLATION OF 20MM ON FMS EDA GR-P-SCN EX-USCGC CUTTERS GREECE. THE 20MM SYSTEM IS BEING BUILD IN ITALY AND SHIPPED TO GREECE FOR THE HELLENIC NAVY. Key points: 1. Contract awarded for 20mm systems to be built in Italy and shipped to Greece. 2. MSI Defense Solutions LLC is the sole contractor for this acquisition. 3. The contract is a Firm Fixed Price type, valued at $9,596,699. 4. This purchase supports foreign military sales and international cooperation.
Value Assessment
Rating: fair
The contract value of $9.6M for 20mm systems appears to be within a reasonable range for specialized military hardware, though direct comparison is difficult without detailed specifications and market data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not available for competition, indicating a limited source procurement. This method may lead to higher prices due to the lack of competitive bidding and price discovery.
Taxpayer Impact: Taxpayer funds are being used for a foreign military sale, impacting the direct benefit to U.S. defense readiness but supporting allied capabilities.
Public Impact
Enhances naval defense capabilities for Greece through U.S. foreign military sales. Supports international partnerships and interoperability within NATO allies. Procurement involves international manufacturing and shipping, adding logistical complexity. Funds are allocated for specialized ordnance systems with potential dual-use applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about price reasonableness.
- International manufacturing and shipping add complexity and potential delays.
- Lack of detailed cost breakdown makes thorough value assessment challenging.
Positive Signals
- Supports a key U.S. ally (Greece) with critical defense equipment.
- Firm Fixed Price contract provides cost certainty for the government.
- Procurement aligns with broader U.S. foreign policy and security objectives.
Sector Analysis
This contract falls within the defense sector, specifically related to ordnance manufacturing and foreign military sales. Spending benchmarks for similar specialized naval weapon systems are highly variable and depend on specific capabilities and quantities.
Small Business Impact
The contract was awarded to MSI Defense Solutions LLC, a company that is not identified as a small business. There is no indication that small businesses were involved as subcontractors in this specific award.
Oversight & Accountability
The contract is a definitive contract awarded by the Department of Homeland Security (U.S. Coast Guard). Oversight would focus on contract performance, delivery schedules, and adherence to the firm fixed price.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Homeland Security Contracting
- U.S. Coast Guard Programs
Risk Flags
- Lack of competition
- International supply chain risks
- Potential for cost overruns due to shipping and customs
- Limited transparency on price justification
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-homeland-security, nc, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $9.6 million to MSI DEFENSE SOLUTIONS LLC. PURCHASE AND INSTALLATION OF 20MM ON FMS EDA GR-P-SCN EX-USCGC CUTTERS GREECE. THE 20MM SYSTEM IS BEING BUILD IN ITALY AND SHIPPED TO GREECE FOR THE HELLENIC NAVY.
Who is the contractor on this award?
The obligated recipient is MSI DEFENSE SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (U.S. Coast Guard).
What is the total obligated amount?
The obligated amount is $9.6 million.
What is the period of performance?
Start: 2023-12-14. End: 2026-06-01.
What is the justification for limiting competition on this contract, and how was the price determined to be fair and reasonable?
The justification for limited competition is stated as 'NOT AVAILABLE FOR COMPETITION'. Without further details, it's difficult to assess the price determination process. Typically, agencies would rely on market research, historical pricing, or certified cost and pricing data from the contractor to establish fair and reasonable pricing when competition is not feasible.
What are the specific risks associated with international manufacturing and shipping for this ordnance system?
Risks include potential delays due to international logistics, customs, and geopolitical factors. Quality control during manufacturing abroad requires robust oversight. Furthermore, shipping ordnance internationally involves stringent regulations and security protocols, increasing complexity and potential for unforeseen costs or compliance issues.
How does this procurement contribute to U.S. national security interests beyond supporting the Hellenic Navy?
This procurement strengthens interoperability with a key NATO ally, enhancing collective security and burden-sharing. It also supports the U.S. defense industrial base by providing work for manufacturers, albeit located internationally. Furthermore, it reinforces U.S. foreign policy objectives by bolstering the capabilities of partner nations.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: 70Z02323R92200001
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 136 KNOB HILL RD, MOORESVILLE, NC, 28117
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,596,699
Exercised Options: $9,596,699
Current Obligation: $9,596,699
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2023-12-14
Current End Date: 2026-06-01
Potential End Date: 2026-06-01 12:00:00
Last Modified: 2026-03-25
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