Army awards $17.75M contract for pyrotechnics, with a 5-year duration and full and open competition

Contract Overview

Contract Amount: $17,754,320 ($17.8M)

Contractor: Pyrotechnic Specialties, Inc

Awarding Agency: Department of Defense

Start Date: 2002-06-24

End Date: 2015-12-31

Contract Duration: 4,938 days

Daily Burn Rate: $3.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200209!000794!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902C0030 !A!N! !N! !20020624!20041230!785336256!785336256!785336256!N!PYROTECHNIC SPECIALTIES INC !1661 JUNIPER CREEK RD !BYRON !GA!31008!12260!225!13!BYRON !PEACH !GEORGIA !+000006158336!N!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !325998!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!005!K! !A!N!A! ! !N!B!N!N! ! !C! !B!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: BYRON, PEACH County, GEORGIA, 31008

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to PYROTECHNIC SPECIALTIES, INC for work described as: 200209!000794!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902C0030 !A!N! !N! !20020624!20041230!785336256!785336256!785336256!N!PYROTECHNIC SPECIALTIES INC !1661 JUNIPER CREEK RD !BYRON !GA!31008!12260!225!13!BYRON !PEACH… Key points: 1. Contract awarded for pyrotechnics, a critical component in various defense applications. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. The duration of the contract is over 4,000 days, indicating a long-term need. 4. The contractor, Pyrotechnic Specialties, Inc., is based in Georgia. 5. The contract falls under the 'All Other Miscellaneous Chemical Product and Preparation Manufacturing' NAICS code. 6. The contract type is a Firm Fixed Price, which shifts risk to the contractor. 7. The award amount is substantial, reflecting the specialized nature of the product.

Value Assessment

Rating: good

The contract value of $17.75 million over approximately 13.5 years suggests a moderate annual spend. Without specific per-unit data or comparable contract benchmarks for pyrotechnics, a precise value-for-money assessment is challenging. However, the firm fixed-price nature of the contract implies that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the contractor is experienced and efficient. The number of bids received (5) also suggests a degree of market interest and potential for competitive pricing.

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,' which is a specific type of full and open competition. Five bids were received, indicating a healthy level of interest from potential suppliers. The competitive nature of the bidding process likely contributed to price discovery and potentially secured a more favorable price for the government compared to a sole-source award.

Taxpayer Impact: The full and open competition with multiple bidders suggests that taxpayer dollars were likely used efficiently, as the government benefited from a competitive market to secure the required pyrotechnics.

Public Impact

The U.S. Army is the primary beneficiary, receiving essential pyrotechnic materials for its operations. The services delivered include the supply of specialized pyrotechnic products. The geographic impact is primarily within the United States, with the contractor located in Georgia. Workforce implications may include employment at the contractor's facility in Byron, Georgia, and potentially within the Army's logistics and operational units.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 13 years) could lead to potential obsolescence of technology or changing requirements.
Reliance on a single contractor for a critical, specialized product could pose supply chain risks.
Firm Fixed Price contracts can sometimes lead to quality compromises if not adequately monitored.
The specific nature of pyrotechnics may involve inherent safety and handling risks that require stringent oversight.

Positive Signals

Full and open competition suggests a robust market and potential for competitive pricing.
Firm Fixed Price contract shifts cost overrun risk to the contractor.
The contract award indicates a sustained requirement for these pyrotechnic capabilities by the Army.
Contractor is located in Georgia, potentially supporting regional economic activity.

Sector Analysis

This contract falls within the chemical manufacturing sector, specifically focusing on pyrotechnics. The market for defense-related pyrotechnics is specialized, often involving a limited number of manufacturers capable of meeting stringent military specifications. Comparable spending benchmarks are difficult to ascertain without more specific product details, but the overall defense spending on ordnance and related materials is in the billions annually. This contract represents a specific, long-term procurement within that broader landscape.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The contractor, Pyrotechnic Specialties, Inc., is likely a medium to large-sized business given the contract value and duration. The absence of small business set-asides or subcontracting plans means there is no direct positive impact on the small business ecosystem from this specific award.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the U.S. Army Contracting Command and potentially the Defense Contract Management Agency (DCMA). Accountability measures would be embedded in the contract terms, including performance standards, delivery schedules, and quality assurance clauses. Transparency is generally facilitated through contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Ammunition Procurement
Ordnance and Explosives
Chemical Manufacturing
Department of Defense Supply Chain Management
Military Munitions

Risk Flags

Long contract duration
Specialized product with limited suppliers
Firm Fixed Price contract requires careful quality oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to PYROTECHNIC SPECIALTIES, INC. 200209!000794!2100!AA09 !U.S. ARMY INDUSTRIAL OPERATIONS !DAAA0902C0030 !A!N! !N! !20020624!20041230!785336256!785336256!785336256!N!PYROTECHNIC SPECIALTIES INC !1661 JUNIPER CREEK RD !BYRON !GA!31008!12260!225!13!BYRON !PEACH !GEORGIA !+000006158336!N!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !325998!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is PYROTECHNIC SPECIALTIES, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2002-06-24. End: 2015-12-31.

What is the historical spending pattern for pyrotechnics by the U.S. Army or Department of Defense?

Historical spending on pyrotechnics by the U.S. Army and the broader Department of Defense is not readily available as a distinct category in public databases. Pyrotechnics are often procured as components of larger systems (e.g., flares, signaling devices, training munitions) or as part of general ammunition or chemical manufacturing contracts. However, given the long duration and value of this contract, it suggests a consistent and significant requirement for these specialized materials over time. Annual defense spending on ammunition and related components runs into billions of dollars, and pyrotechnics represent a niche but critical segment within that expenditure. Analyzing trends in related categories like 'Ammunition' or 'Chemical Weapons and Preparations' might offer indirect insights into the market dynamics and potential for sustained demand.

How does the per-unit cost of these pyrotechnics compare to market rates or similar government contracts?

Determining the per-unit cost for this contract is not feasible with the provided data, as the specific quantity and type of pyrotechnics are not detailed. The total award amount of $17.75 million over approximately 13.5 years, coupled with the NAICS code 'All Other Miscellaneous Chemical Product and Preparation Manufacturing,' indicates a specialized product. Without knowing the exact units or specifications, a direct comparison to market rates or other government contracts is impossible. However, the firm fixed-price nature and the fact that five bids were received suggest that the pricing was likely competitive within the specialized market for military-grade pyrotechnics. Government contracts for such items often include stringent quality and performance requirements that can influence pricing.

What is the track record of Pyrotechnic Specialties, Inc. in fulfilling government contracts, particularly for the Department of Defense?

Pyrotechnic Specialties, Inc. has a history of receiving federal contracts, primarily with the Department of Defense. Data from contract databases indicates they have been awarded multiple contracts over the years, including this significant definitive contract for pyrotechnics. Their sustained engagement with the government suggests a capacity to meet contractual obligations. However, a comprehensive assessment of their track record would require a deeper dive into past performance reviews, on-time delivery rates, quality compliance, and any past disputes or contract terminations. Without access to detailed performance metrics, it's assumed that their continued awards reflect a satisfactory performance history, but specific instances of excellence or deficiency are not detailed in the summary data.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential supply chain disruptions due to the specialized nature of pyrotechnics, the long duration (over 13 years) which could lead to technological obsolescence or changing military requirements, and the possibility of quality issues if not rigorously monitored under the firm fixed-price structure. Mitigation strategies would typically involve robust quality assurance protocols by the Army, regular performance reviews of the contractor, maintaining open communication channels, and potentially having contingency plans for alternative suppliers or modified requirements. The firm fixed-price nature itself mitigates the risk of cost overruns for the government, shifting that financial risk to the contractor, provided the contractor is financially stable and operationally sound.

How does this contract fit into the broader U.S. Army's strategy for ordnance and munitions procurement?

This contract for pyrotechnics fits into the U.S. Army's broader strategy by ensuring a consistent supply of critical components for various operational needs, which may include signaling, illumination, training, or specialized ordnance. The Army procures a wide range of munitions and related materials to maintain readiness and support global operations. Long-term contracts like this one provide supply chain stability and predictability for essential items. The procurement process, emphasizing full and open competition, aligns with the Army's goal of achieving best value and efficient use of taxpayer funds. This specific contract addresses a niche but vital capability within the overall ordnance and munitions portfolio.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › All Other Miscellaneous Chemical Product and Preparation Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1661 JUNIPER CREEK RD, BYRON, GA, 31008

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Veteran Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline