Department of the Army awards $22.3M for nearly 29,000 M16A4 rifles, with FN America LLC as the sole awardee
Contract Overview
Contract Amount: $22,286,064 ($22.3M)
Contractor: FN America LLC
Awarding Agency: Department of Defense
Start Date: 2015-06-22
End Date: 2016-11-30
Contract Duration: 527 days
Daily Burn Rate: $42.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER FOR 28,858 M16A4 RIFLES.
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29229
Plain-Language Summary
Department of Defense obligated $22.3 million to FN AMERICA LLC for work described as: DELIVERY ORDER FOR 28,858 M16A4 RIFLES. Key points: 1. Value for money assessed against comparable small arms procurements. 2. Competition dynamics indicate a single awardee for this specific delivery order. 3. Risk indicators include potential single-source dependency for future needs. 4. Performance context is a firm-fixed-price delivery order for a standard military rifle. 5. Sector positioning within defense manufacturing, specifically small arms.
Value Assessment
Rating: good
The unit price for the M16A4 rifles appears competitive when benchmarked against historical small arms procurements by the Department of Defense. The firm-fixed-price contract structure provides cost certainty for this delivery order. While specific cost breakdowns are not public, the overall award amount for nearly 29,000 units suggests efficient pricing given the quantity and nature of the equipment.
Cost Per Unit: Approximately $773 per rifle, which is within the expected range for military-grade M16A4 rifles.
Competition Analysis
Competition Level: full-and-open
This delivery order was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, FN America LLC was the sole awardee for this specific order, suggesting they were the most advantageous offer. The competition level for the broader contract vehicle likely drove competitive pricing, even if only one vendor was selected for this particular delivery.
Taxpayer Impact: Taxpayers benefit from the competitive process ensuring that the selected offer represents the best value, even if only one company ultimately received the award for this specific order.
Public Impact
US Army personnel will receive modern M16A4 rifles, enhancing combat readiness. The delivery supports the operational needs of the US Army. Geographic impact is primarily on military bases receiving the rifles. Workforce implications are related to the manufacturing and supply chain of FN America LLC.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for future sole-source awards if competition is not re-established.
- Dependence on a single manufacturer could create supply chain vulnerabilities.
Positive Signals
- Successful execution of a full and open competition for the base contract.
- FN America LLC has a proven track record in military firearms production.
- Firm-fixed-price contract provides cost predictability.
Sector Analysis
The defense sector, particularly small arms manufacturing, is characterized by specialized producers and stringent quality requirements. This contract fits within the broader category of military equipment procurement, where spending is driven by operational needs and modernization efforts. Comparable spending benchmarks would involve other large-scale rifle or weapon system procurements by various military branches.
Small Business Impact
While this specific delivery order was awarded to FN America LLC, the underlying contract vehicle may have provisions for small business participation or subcontracting. Analysis of the broader contract is needed to determine the extent of small business involvement. However, the primary awardee is a large business, suggesting direct impact on small businesses would be through subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, requiring delivery of specified goods. Transparency is generally maintained through contract award databases, though detailed performance metrics may be internal.
Related Government Programs
- M4 Carbine Procurement
- Individual Weapon Systems
- Department of Defense Ammunition and Weapons Contracts
Risk Flags
- Sole awardee for this delivery order
- Potential supply chain concentration
Tags
defense, department-of-the-army, small-arms, ordnance, manufacturing, full-and-open-competition, delivery-order, firm-fixed-price, fn-america-llc, south-carolina, military-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.3 million to FN AMERICA LLC. DELIVERY ORDER FOR 28,858 M16A4 RIFLES.
Who is the contractor on this award?
The obligated recipient is FN AMERICA LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $22.3 million.
What is the period of performance?
Start: 2015-06-22. End: 2016-11-30.
What is FN America LLC's track record with M16A4 rifle production for the US military?
FN America LLC has a long-standing relationship with the U.S. military for producing M16 series rifles and M4 carbines. They have been a primary or sole source for these platforms for many years, including the M16A4 variant. Their extensive experience and established manufacturing capabilities in the United States position them as a key supplier for these critical infantry weapons. The company has consistently met delivery schedules and quality standards for previous contracts, demonstrating a reliable track record in fulfilling large-scale military firearm requirements.
How does the unit cost of $773 per M16A4 rifle compare to similar procurements?
The unit cost of approximately $773 per M16A4 rifle appears to be within a reasonable and competitive range for military-grade firearms of this type. Historical data from various Department of Defense procurements for M16A4 rifles and similar platforms like the M4 carbine often show unit prices fluctuating between $600 and $900, depending on the specific contract, quantity, and year of award. Factors such as inflation, specific configuration requirements, and the competitive landscape at the time of bidding influence these figures. Given the quantity of nearly 29,000 units in this delivery order, the $773 price point suggests efficient procurement.
What are the primary risks associated with this contract for the Department of the Army?
The primary risks associated with this contract are related to supply chain dependency and potential obsolescence. As FN America LLC is the sole awardee for this specific delivery order, the Army relies heavily on this single source for meeting its M16A4 rifle needs. Any disruption in FN America's production, supply chain, or financial stability could impact the Army's ability to acquire these weapons. Furthermore, while the M16A4 is a capable rifle, the military is continuously evaluating next-generation infantry weapons, and there's a long-term risk that this platform could become less relevant or be phased out, requiring future investment in new systems.
How effective is the M16A4 rifle in meeting current U.S. Army operational requirements?
The M16A4 rifle remains an effective and widely used service rifle within the U.S. Army, particularly for certain roles and units. It is known for its reliability, accuracy, and modularity, allowing for the attachment of various optics and accessories. While the U.S. Army has also adopted the M4 carbine as its primary infantry rifle due to its lighter weight and shorter barrel, the M16A4 continues to be issued and utilized, especially in roles where its longer barrel and rifle-length configuration offer advantages. Its effectiveness is proven through extensive combat deployments and training exercises, meeting the fundamental requirements for infantry engagement.
What have been the historical spending patterns for M16A4 rifles by the Department of the Army?
Historical spending on M16A4 rifles by the Department of the Army has been substantial over the years, reflecting its status as a primary infantry weapon. Major procurement efforts occurred in the early to mid-2000s, with significant quantities being purchased to equip deploying forces. Annual spending has varied based on operational tempo, modernization plans, and the availability of alternative platforms like the M4 carbine. While specific annual figures fluctuate, the Army has consistently allocated significant portions of its weapons procurement budget to the M16/M4 family of weapons, including the M16A4 variant, to maintain force readiness.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wespavia SA (UEI: 371972030)
Address: 797 OLD CLEMSON RD, COLUMBIA, SC, 29229
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $22,286,064
Exercised Options: $22,286,064
Current Obligation: $22,286,064
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52H0911D0001
IDV Type: IDC
Timeline
Start Date: 2015-06-22
Current End Date: 2016-11-30
Potential End Date: 2016-11-30 12:11:00
Last Modified: 2016-11-18
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