Department of Energy awards $397K for 5.56x45mm ammunition, highlighting tactical bonded rounds
Contract Overview
Contract Amount: $397,195 ($397.2K)
Contractor: THE Kinetic Group Sales LLC
Awarding Agency: Department of Energy
Start Date: 2026-04-01
End Date: 2026-08-15
Contract Duration: 136 days
Daily Burn Rate: $2.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY OFF OF FBI IDIQ CONTRACT NUMBER 15F06726D0000187, CTG 5.56X45MM FEDERAL 64GR TACTICAL BONDED X, PRODUCT NUMBER Z556T64XFBI.
Place of Performance
Location: ANOKA, ANOKA County, MINNESOTA, 55303
Plain-Language Summary
Department of Energy obligated $397,195 to THE KINETIC GROUP SALES LLC for work described as: DELIVERY OFF OF FBI IDIQ CONTRACT NUMBER 15F06726D0000187, CTG 5.56X45MM FEDERAL 64GR TACTICAL BONDED X, PRODUCT NUMBER Z556T64XFBI. Key points: 1. Value for money appears reasonable given the specialized nature of tactical bonded ammunition. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Delivery order structure indicates a need for specific, time-bound supply. 4. The contract is for a niche product, suggesting specific operational requirements. 5. Performance is tied to delivery within a defined timeframe. 6. Sector positioning is within defense-related manufacturing and supply.
Value Assessment
Rating: good
The contract value of $397,195 for specialized ammunition is within a typical range for such procurements. Benchmarking against similar contracts for tactical bonded rounds would provide a more precise value assessment. The firm fixed-price structure helps control costs for the government, assuming the unit price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and quality for the government. The number of bidders is not specified, but the method itself suggests a robust competition.
Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for receiving the best value through a wide range of offers and competitive pricing.
Public Impact
The Department of Energy benefits from a secure supply of critical ammunition. Services delivered include the provision of 5.56x45mm Federal 64gr Tactical Bonded X ammunition. The geographic impact is primarily within Minnesota, where the contractor is located. Workforce implications are likely within the manufacturing and logistics sectors supporting the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price fluctuations in future orders if competition diminishes.
- Dependence on a single contractor for this specific ammunition type could pose a supply chain risk if not managed.
- Ensuring quality control for specialized ammunition is critical for operational effectiveness.
Positive Signals
- Awarded under full and open competition, suggesting a competitive market.
- Firm fixed-price contract provides cost certainty for this order.
- Clear delivery timeline ensures timely fulfillment of requirements.
Sector Analysis
The market for small arms ammunition is a significant segment within the broader defense industrial base. This contract falls under the manufacturing of ammunition, specifically focusing on specialized rounds like tactical bonded ammunition, which are designed for enhanced performance in specific scenarios. Comparable spending benchmarks would involve analyzing other government contracts for similar ammunition types and quantities.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The primary contractor, THE KINETIC GROUP SALES LLC, is not explicitly identified as a small business in the provided data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless the prime contractor engages small businesses in its supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Energy's contracting and procurement regulations. Accountability measures are embedded in the firm fixed-price contract terms and the delivery schedule. Transparency is facilitated by the contract award notice. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Department of Defense Ammunition Procurements
- Federal Law Enforcement Ammunition Supply
- Tactical Ammunition Manufacturing
- Small Arms Ammunition IDIQ Contracts
Risk Flags
- Potential supply chain vulnerability for specialized ammunition.
- Dependence on specific product performance characteristics.
- Need for rigorous quality assurance on tactical rounds.
Tags
defense, department-of-energy, ammunition, firm-fixed-price, delivery-order, full-and-open-competition, tactical-bonded, small-arms, minnesota, manufacturing
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $397,195 to THE KINETIC GROUP SALES LLC. DELIVERY OFF OF FBI IDIQ CONTRACT NUMBER 15F06726D0000187, CTG 5.56X45MM FEDERAL 64GR TACTICAL BONDED X, PRODUCT NUMBER Z556T64XFBI.
Who is the contractor on this award?
The obligated recipient is THE KINETIC GROUP SALES LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $397,195.
What is the period of performance?
Start: 2026-04-01. End: 2026-08-15.
What is the track record of THE KINETIC GROUP SALES LLC in fulfilling government contracts, particularly for ammunition?
Information regarding THE KINETIC GROUP SALES LLC's specific track record for fulfilling government contracts, especially for ammunition, is not detailed in the provided data. A comprehensive assessment would require reviewing their past performance on similar contracts, including on-time delivery rates, quality compliance, and any history of disputes or contract modifications. Without this historical data, it is difficult to definitively assess their reliability and past performance in this specialized area. Further research into federal procurement databases and past performance reviews would be necessary to establish a detailed track record.
How does the unit price of this ammunition compare to market rates for similar tactical bonded rounds?
The provided data does not include the unit price for the 5.56x45mm Federal 64gr Tactical Bonded X ammunition, only the total contract value. To compare this to market rates, the total value ($397,195) would need to be divided by the quantity of ammunition procured. Once the unit price is calculated, it could be benchmarked against commercial sales prices for the same or comparable ammunition, as well as against prices from other government contracts awarded through competitive processes. Factors such as bulk purchasing discounts, specific contract terms, and delivery requirements can influence price comparisons.
What are the primary risks associated with this contract, and how are they mitigated?
Primary risks associated with this contract include potential supply chain disruptions, quality control issues with specialized ammunition, and price volatility for future orders. Mitigation strategies involve the firm fixed-price contract structure, which locks in the price for this specific order, and the full and open competition, which aims to ensure a competitive market. The defined delivery period also helps manage schedule risk. However, long-term risks might require ongoing market analysis and potentially diversifying suppliers or establishing longer-term agreements if the need for this specific ammunition is sustained and critical.
How effective is the Department of Energy in procuring specialized ammunition through delivery orders?
The effectiveness of the Department of Energy in procuring specialized ammunition through delivery orders can be assessed by examining the timeliness of delivery, the quality of the received product, and the overall cost-efficiency. This specific contract, awarded under full and open competition with a firm fixed-price structure and a defined delivery window, suggests a structured approach to meeting a specific need. However, a broader analysis would involve reviewing multiple delivery orders for ammunition to identify trends in performance, cost, and adherence to requirements. The success of this particular delivery order will be determined by the contractor's ability to meet the specified delivery dates and product specifications.
What are the historical spending patterns for small arms ammunition by the Department of Energy?
Historical spending patterns for small arms ammunition by the Department of Energy are not detailed in the provided data. This contract represents a specific instance of spending for a particular type of ammunition. To understand historical patterns, one would need to analyze aggregated spending data over several fiscal years, identifying trends in the types of ammunition procured, the quantities, the contracting vehicles used (e.g., IDIQs, individual delivery orders), and the primary contractors. This would help determine if this $397K award is representative of typical spending or an outlier.
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: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Vista Outdoor Inc.
Address: 1 VISTA WAY, ANOKA, MN, 55303
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $397,195
Exercised Options: $397,195
Current Obligation: $397,195
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: 15F06726D0000187
IDV Type: IDC
Timeline
Start Date: 2026-04-01
Current End Date: 2026-08-15
Potential End Date: 2026-08-15 00:00:00
Last Modified: 2026-04-01
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