DoD Awards $59.9M for Small Arms Ammunition Manufacturing to Chamberlain Manufacturing Corp

Contract Overview

Contract Amount: $104,193,182 ($104.2M)

Contractor: General Dynamics Ordnance and Tactical Systems Inc

Awarding Agency: Department of Defense

Start Date: 2003-04-30

End Date: 2008-01-31

Contract Duration: 1,737 days

Daily Burn Rate: $60.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200311!000964!2100!AE30 !TACOM - PICATINNY !DAAE3003C1114 !A!N! !N! !20030430!20060430!003035870!005284864!106937436!N!CHAMBERLAIN MANUFACTURING CORP!156 CEDAR AVENUE !SCRANTON !PA!18505!69008!069!42!SCRANTON ARMY AMMUNI!LACKAWANNA !PENN !+000004308200!N!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332992!E! !3! ! ! ! ! !99990909!B! ! !A! !D!N!J!1!001!N!1G!A!N!A! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: SCRANTON, LACKAWANNA County, PENNSYLVANIA, 18505

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $104.2 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS INC for work described as: 200311!000964!2100!AE30 !TACOM - PICATINNY !DAAE3003C1114 !A!N! !N! !20030430!20060430!003035870!005284864!106937436!N!CHAMBERLAIN MANUFACTURING CORP!156 CEDAR AVENUE !SCRANTON !PA!18505!69008!069!42!SCRANTON ARMY AMMUNI!LACKA… Key points: 1. Contract awarded to Chamberlain Manufacturing Corp. for ammunition production. 2. Significant value of $59.9 million for a single contract. 3. Contract type is Firm Fixed Price, indicating price certainty. 4. Sector is Defense, specifically Army Ammunition. 5. Potential risk associated with sole-source or limited competition.

Value Assessment

Rating: fair

The contract value of $59.9 million for ammunition manufacturing appears substantial. Benchmarking against similar contracts for small arms ammunition would be necessary to definitively assess pricing, but the fixed-price nature suggests an agreed-upon value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed, suggesting a limited competition or sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a fully competed contract.

Taxpayer Impact: The lack of full and open competition may result in a higher cost to taxpayers than if the contract had been awarded through a competitive process.

Public Impact

Ensures supply of critical small arms ammunition for the Department of Defense. Supports manufacturing jobs within Pennsylvania. Potential for increased costs due to limited competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Potential for price inflation due to lack of competition

Positive Signals

Ensures critical supply
Firm Fixed Price contract provides cost certainty

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing of small arms ammunition. Spending in this area is critical for military readiness, and benchmarks are often tied to production volume and material costs.

Small Business Impact

The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

Oversight would typically involve contract performance monitoring by the Department of the Army to ensure timely delivery and quality of ammunition. The fixed-price nature shifts some risk to the contractor.

Related Government Programs

Small Arms Ammunition Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition
Potential for overpricing
Lack of transparency in award justification
No small business set-aside identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $104.2 million to GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS INC. 200311!000964!2100!AE30 !TACOM - PICATINNY !DAAE3003C1114 !A!N! !N! !20030430!20060430!003035870!005284864!106937436!N!CHAMBERLAIN MANUFACTURING CORP!156 CEDAR AVENUE !SCRANTON !PA!18505!69008!069!42!SCRANTON ARMY AMMUNI!LACKAWANNA !PENN !+000004308200!N!N!000000000000!AD11!RDTE/AMMUNITION-BASIC RESEARCH !A6 !AMMUNITION !1000!NOT DISCERNABLE OR CLASSIFIED !332992!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS ORDNANCE AND TACTICAL SYSTEMS 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 $104.2 million.

What is the period of performance?

Start: 2003-04-30. End: 2008-01-31.

What was the justification for limiting competition on this significant ammunition contract?

The justification for limiting competition is not explicitly stated in the provided data. Typically, such decisions are based on factors like urgent need, unique capabilities of a specific contractor, or the unavailability of other sources. A thorough review of the contract file would be required to ascertain the precise rationale and ensure it aligns with federal procurement regulations.

How does the unit cost of this ammunition compare to industry benchmarks, given the limited competition?

Without specific unit cost data and comparable industry benchmarks for this particular type of small arms ammunition, a direct comparison is not possible. However, limited competition generally carries a risk of higher unit costs compared to fully competed contracts due to reduced price pressure. Further investigation into the contract's pricing structure and market rates is needed.

What is the long-term strategic value of awarding this contract to Chamberlain Manufacturing Corp. versus exploring competitive options?

The long-term strategic value depends on Chamberlain's unique capabilities, production capacity, and reliability in meeting the Army's ammunition needs. If they possess specialized expertise or infrastructure crucial for national security, a sole-source or limited award might be strategically justified. However, the lack of competition raises concerns about long-term cost-effectiveness and fostering innovation within the broader defense industrial base.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 156 CEDAR AVE, SCRANTON, PA, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,480,837

Exercised Options: $1,480,837

Current Obligation: $104,193,182

Contract Characteristics

Cost or Pricing Data: NO

Timeline