Air Force awards $25.5M for bomb body production, with 2 bidders competing

Contract Overview

Contract Amount: $25,545,090 ($25.5M)

Contractor: Faxon Machining, LLC

Awarding Agency: Department of Defense

Start Date: 2024-03-15

End Date: 2025-09-15

Contract Duration: 549 days

Daily Burn Rate: $46.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THIS IS DELIVERY ORDER NUMBER 6 FOR BLU-136/B EMPTY BOMB BODY ASSEMBLY PRODUCTION. NSN 1325-01-674-1609.

Place of Performance

Location: CINCINNATI, HAMILTON County, OHIO, 45240

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $25.5 million to FAXON MACHINING, LLC for work described as: THIS IS DELIVERY ORDER NUMBER 6 FOR BLU-136/B EMPTY BOMB BODY ASSEMBLY PRODUCTION. NSN 1325-01-674-1609. Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate potential for price discovery. 3. Risk indicators include fixed-price contract type and delivery order structure. 4. Performance context is ongoing production of a critical munition component. 5. Sector positioning within defense manufacturing, specifically ordnance. 6. Contract awarded to a single vendor, Faxon Machining, LLC.

Value Assessment

Rating: good

The contract value of $25.5 million for bomb body assembly appears reasonable given the nature of defense manufacturing and the specific item. Benchmarking against similar contracts for munition components is challenging without more detailed specifications, but the fixed-price nature suggests the government has a clear understanding of costs. The presence of two bidders in the competition phase implies a degree of market viability and potential for cost control.

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,' indicating that while the initial solicitation was broad, specific criteria or circumstances led to the exclusion of some potential sources before the final award. Two bidders ultimately competed for this delivery order, suggesting a moderately competitive environment for this specific munition component.

Taxpayer Impact: A competitive process, even with a limited number of bidders, generally benefits taxpayers by encouraging more favorable pricing compared to sole-source awards. The two-bidder scenario suggests that while some competition exists, it may not be as robust as a multi-bidder scenario, potentially impacting the extent of price reductions achieved.

Public Impact

The primary beneficiaries are the U.S. Air Force and potentially other branches of the Department of Defense requiring bomb bodies. Services delivered include the production and assembly of BLU-136/B empty bomb bodies. Geographic impact is primarily within Ohio, where Faxon Machining, LLC is located. Workforce implications include job creation and maintenance at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single awardee for this specific delivery order.
Potential for supply chain disruptions if the sole awardee faces production issues.
The 'after exclusion of sources' aspect warrants understanding the rationale for exclusions.

Positive Signals

Awarded under a competitive process, indicating market engagement.
Fixed-price contract type provides cost certainty for the government.
Delivery order structure allows for phased acquisition of a critical item.

Sector Analysis

The defense manufacturing sector, specifically focusing on ordnance and munitions, is characterized by high barriers to entry, stringent quality control, and long-term government contracts. The market size for bomb bodies is directly tied to military readiness and operational tempo. This contract fits within the broader category of aerospace and defense, where specialized manufacturing capabilities are essential. Comparable spending benchmarks are difficult to ascertain without specific technical data, but the overall defense budget for procurement provides a macro context.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the specialized nature of munition manufacturing, it is less common for prime contracts of this type to be set aside for small businesses. However, the prime contractor may engage small businesses for subcontracting opportunities, depending on their supply chain needs and the specific requirements of the bomb body assembly.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the fixed-price contract terms, requiring delivery of specified goods by a certain date. Transparency is facilitated through contract award databases, though detailed technical specifications and production processes are often sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

BLU-136/B Bomb Body
Munitions Production
Air Force Ammunition Procurement
Defense Industrial Base
Ordnance Manufacturing

Risk Flags

Potential for supply chain disruption
Quality control risks in manufacturing
Limited competition pool identified
Dependence on single awardee for this delivery order

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.5 million to FAXON MACHINING, LLC. THIS IS DELIVERY ORDER NUMBER 6 FOR BLU-136/B EMPTY BOMB BODY ASSEMBLY PRODUCTION. NSN 1325-01-674-1609.

Who is the contractor on this award?

The obligated recipient is FAXON MACHINING, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $25.5 million.

What is the period of performance?

Start: 2024-03-15. End: 2025-09-15.

What is the historical spending pattern for BLU-136/B bomb body production with Faxon Machining, LLC?

This data point represents Delivery Order Number 6 for the BLU-136/B empty bomb body assembly production, awarded to Faxon Machining, LLC. The total value of this specific order is $25,545,090. To understand the historical spending pattern, one would need to examine previous delivery orders under the same basic contract, if applicable, or review prior contracts awarded to Faxon Machining for similar or related items. Without access to the full contract history and all associated delivery orders, a comprehensive analysis of historical spending is not possible. However, the existence of multiple delivery orders (this being the 6th) suggests a sustained need and ongoing production relationship for this munition component.

How does the unit cost of the BLU-136/B bomb body compare to similar munition components?

Determining a precise unit cost requires dividing the total contract value by the number of units produced, which is not explicitly provided in the data. The contract value is $25,545,090 for an unspecified quantity of BLU-136/B empty bomb bodies. Benchmarking against similar munition components is challenging due to variations in complexity, materials, size, and production scale. However, the NSN 1325-01-674-1609 indicates it falls under 'Ammunition (except Small Arms) Manufacturing.' Without specific technical drawings, material costs, and labor inputs, a direct comparison to other bomb bodies or munition casings is speculative. The competitive nature of the award (2 bidders) suggests the pricing is within a market-driven range for this type of defense article.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract include potential production delays, quality control failures, and supply chain disruptions. As a fixed-price contract, the government has cost certainty, but the contractor bears the risk of cost overruns. If Faxon Machining, LLC encounters unforeseen manufacturing challenges or material shortages, it could impact the delivery schedule, potentially affecting military readiness. The 'after exclusion of sources' aspect of the competition also introduces a risk if the excluded sources possessed unique capabilities or if the exclusion process was flawed, limiting the overall competitive landscape. Ensuring consistent quality of the bomb bodies is paramount, as defects could render them unusable or unsafe.

What is the track record of Faxon Machining, LLC in fulfilling defense contracts?

Faxon Machining, LLC has been awarded this contract, indicating they possess the necessary certifications, capabilities, and security clearances to manufacture defense articles. The fact that this is Delivery Order Number 6 suggests a history of successful performance on this specific contract, implying they have met previous delivery schedules and quality standards. To fully assess their track record, a review of their past performance on other government contracts, including any past performance evaluations, contract modifications, or disputes, would be necessary. However, securing multiple delivery orders on a competitive basis points towards a generally reliable performance history.

How does this contract contribute to the overall readiness of U.S. Air Force munitions?

This contract directly contributes to the readiness of U.S. Air Force munitions by ensuring the supply of BLU-136/B empty bomb bodies. These are critical components that form the casing for various types of munitions. By awarding this contract, the Air Force is securing the necessary physical structures to fill with explosives and guidance kits, enabling the creation of functional bombs. Consistent and timely delivery of these bomb bodies is essential for maintaining adequate stockpiles, supporting training exercises, and meeting operational demands during potential conflicts. The $25.5 million investment signifies a commitment to sustaining and potentially increasing the inventory of these vital ordnance components.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA821324R0200

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11101 ADWOOD DR, CINCINNATI, OH, 45240

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $25,545,090

Exercised Options: $25,545,090

Current Obligation: $25,545,090

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA868120D0001

IDV Type: IDC

Timeline