DoD awards $415M contract for Ammunition Manufacturing to DSE, INC
Contract Overview
Contract Amount: $415,026,818 ($415.0M)
Contractor: DSE, Inc.
Awarding Agency: Department of Defense
Start Date: 2000-04-13
End Date: 2014-06-02
Contract Duration: 5,163 days
Daily Burn Rate: $80.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Place of Performance
Location: ORLANDO, ORANGE County, FLORIDA, 32807
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $415.0 million to DSE, INC. for work described as: Key points: 1. Contract Value: $415 million over 14 years. 2. Competition: Full and open competition. 3. Risk: Moderate risk due to long duration and firm fixed price. 4. Sector: Defense manufacturing.
Value Assessment
Rating: good
The contract value of $415 million over 14 years suggests a significant procurement. Benchmarking against similar ammunition manufacturing contracts would be necessary to fully assess pricing, but the duration implies potential for economies of scale.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing for taxpayers over the contract's long duration.
Public Impact
Ensures supply of essential ammunition for defense operations. Supports a significant defense contractor and its workforce. Long-term nature of the contract provides stability for both parties.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (14 years) may lead to price escalation.
- Firm fixed price could incentivize cost-cutting at the expense of quality.
- Dependence on a single contractor for a critical supply.
Positive Signals
- Full and open competition ensures best value.
- Significant contract value may indicate economies of scale.
- Long-term award provides supply chain stability.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending in this area is critical for national security. Benchmarks for similar long-term ammunition contracts would provide further context.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The contract's long duration and significant value warrant robust oversight from the Defense Contract Management Agency to ensure performance, quality, and adherence to terms.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long-term contract duration.
- Firm fixed price pricing structure.
- Potential for price escalation.
- Single source for critical supply.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $415.0 million to DSE, INC.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DSE, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $415.0 million.
What is the period of performance?
Start: 2000-04-13. End: 2014-06-02.
What is the average annual spending under this contract, and how does it compare to historical spending on similar ammunition procurements?
The average annual spending is approximately $29.6 million ($415,026,817.95 / 14 years). Comparing this to historical data for similar ammunition contracts would reveal if this represents a competitive rate or if there are opportunities for cost savings through renegotiation or alternative sourcing.
What are the specific risks associated with a firm fixed price contract for ammunition over a 14-year period?
A firm fixed price contract over such a long period carries risks of potential cost overruns for the contractor if material or labor costs increase significantly. Conversely, it could lead to the contractor cutting corners on quality to maintain profitability, necessitating stringent government quality assurance measures.
How effective has DSE, INC. been in fulfilling previous defense contracts, particularly those involving ammunition manufacturing?
Assessing DSE, INC.'s past performance is crucial. Reviewing their track record on similar contracts, including on-time delivery, quality compliance, and any past disputes or contract modifications, would provide insight into their reliability and the likely effectiveness of this current award.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 6655 E COLONIAL DR, ORLANDO, FL, 32807
Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2000-04-13
Current End Date: 2014-06-02
Potential End Date: 2014-06-02 00:00:00
Last Modified: 2019-08-29
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