DoD Awards $36.8M for BLU-136/B Warhead Cases to Faxon Machining, LLC
Contract Overview
Contract Amount: $36,849,000 ($36.8M)
Contractor: Faxon Machining, LLC
Awarding Agency: Department of Defense
Start Date: 2025-04-30
End Date: 2026-11-09
Contract Duration: 558 days
Daily Burn Rate: $66.0K/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: BLU-136/B NEXT GENERATION AREA ATACK WARHEAD CASE
Place of Performance
Location: CINCINNATI, HAMILTON County, OHIO, 45240
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $36.8 million to FAXON MACHINING, LLC for work described as: BLU-136/B NEXT GENERATION AREA ATACK WARHEAD CASE Key points: 1. Contract awarded for advanced warhead cases, indicating a need for enhanced munitions. 2. Faxon Machining, LLC, a single awardee, suggests potential specialization or limited market. 3. The firm fixed price contract type aims to control costs for this specific delivery order. 4. This procurement falls under the Ammunition (except Small Arms) Manufacturing sector.
Value Assessment
Rating: fair
The award amount of $36.8 million for 2 units appears high. Benchmarking against similar complex ordnance manufacturing contracts is difficult without more detailed specifications. The unit price is exceptionally high, suggesting either a highly specialized product or potential overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may restrict price discovery and potentially lead to higher costs compared to broader competitive solicitations.
Taxpayer Impact: Taxpayer funds are being used for advanced munitions development. The limited competition raises concerns about achieving the best possible value for the investment.
Public Impact
Enhances U.S. Air Force's aerial attack capabilities with next-generation warhead technology. Supports domestic manufacturing in Ohio, potentially creating or sustaining specialized jobs. Procurement of advanced munitions is critical for national defense readiness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may inflate costs.
- High per-unit cost requires justification.
- Sole source award after exclusion of sources needs scrutiny.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Supports domestic defense manufacturing.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending in this area is driven by modernization efforts and operational readiness requirements.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small businesses were excluded or if the prime contractor intends to subcontract to them.
Oversight & Accountability
The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation warrants oversight to ensure the exclusion was justified and that fair pricing was achieved. The Department of the Air Force is responsible for ensuring accountability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises cost concerns.
- High unit price requires justification.
- Potential for sole-source award after exclusion.
- Lack of small business participation noted.
- Contract duration is substantial for a single delivery order.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.8 million to FAXON MACHINING, LLC. BLU-136/B NEXT GENERATION AREA ATACK WARHEAD CASE
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 $36.8 million.
What is the period of performance?
Start: 2025-04-30. End: 2026-11-09.
What specific technological advancements justify the high cost of the BLU-136/B warhead case compared to existing munitions?
The justification for the high cost likely lies in the 'NEXT GENERATION AREA ATTACK' capabilities. This implies advanced features such as improved penetration, enhanced fragmentation patterns, or integration with new guidance systems. Detailed technical specifications and performance metrics would be required to fully assess the value proposition against the significant per-unit expenditure.
What were the specific reasons for excluding other potential sources in the full and open competition?
Excluding sources after initial full and open competition typically occurs when only a limited number of offerors possess the unique technical capabilities, specialized manufacturing processes, or necessary security clearances required for the specific defense article. Documentation justifying this exclusion is crucial for ensuring fair and transparent procurement practices and preventing potential anti-competitive outcomes.
How does the performance of the BLU-136/B warhead case compare to its predecessors, and does this justify the investment?
The 'NEXT GENERATION' designation suggests significant performance improvements over legacy warhead cases. These could include increased lethality, reduced collateral damage, or enhanced effectiveness against hardened targets. A thorough comparison of key performance indicators (KPIs) against older systems, alongside the cost-benefit analysis, is necessary to determine if the investment is truly justified by the enhanced capabilities.
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
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: $36,849,000
Exercised Options: $36,849,000
Current Obligation: $36,849,000
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
Start Date: 2025-04-30
Current End Date: 2026-11-09
Potential End Date: 2026-11-09 00:00:00
Last Modified: 2025-07-08
More Contracts from Faxon Machining, LLC
- Delivery Order #7 for Blu-136/B Next Generation Area Attack Warhead Case. NSN: 1325-01-674-1609 — $25.8M (Department of Defense)
- This IS Delivery Order Number 6 for Blu-136/B Empty Bomb Body Assembly Production. NSN 1325-01-674-1609 — $25.5M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)