DoD awards $24.5M for BLU-136/B Warhead Cases to Major Tool & Machine Inc
Contract Overview
Contract Amount: $24,541,952 ($24.5M)
Contractor: Major Tool & Machine Inc
Awarding Agency: Department of Defense
Start Date: 2025-04-30
End Date: 2026-11-09
Contract Duration: 558 days
Daily Burn Rate: $44.0K/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 ATTACK WARHEAD CASE
Place of Performance
Location: INDIANAPOLIS, MARION County, INDIANA, 46218
State: Indiana Government Spending
Plain-Language Summary
Department of Defense obligated $24.5 million to MAJOR TOOL & MACHINE INC for work described as: BLU-136/B NEXT GENERATION AREA ATTACK WARHEAD CASE Key points: 1. Contract awarded to Major Tool & Machine Inc. for ammunition manufacturing. 2. The contract is for the BLU-136/B Next Generation Area Attack Warhead Case. 3. Spending falls under the Ammunition (except Small Arms) Manufacturing sector. 4. The contract value is $24,541,952. 5. Delivery is expected by November 2026.
Value Assessment
Rating: fair
The contract value of $24.5M for warhead cases appears within a reasonable range for specialized defense manufacturing. Benchmarking against similar complex ordnance components would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for advanced munitions development, supporting national defense capabilities.
Public Impact
Enhances Air Force's precision strike capabilities with advanced warhead technology. Supports domestic manufacturing and jobs in the defense industrial base. Contributes to the modernization of military ordnance systems. Potential for follow-on contracts based on performance and future needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Reliance on a single contractor for critical components.
- Potential for schedule delays in advanced manufacturing.
Positive Signals
- Investment in advanced warhead technology.
- Supports domestic defense manufacturing.
- Clear delivery timeline established.
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 contract was awarded to Major Tool & Machine Inc., a large business. There is no indication of small business subcontracting in the provided data.
Oversight & Accountability
The Department of the Air Force, under the Department of Defense, is responsible for oversight. The contract type (Firm Fixed Price) aims to control costs, but monitoring performance and delivery is crucial.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Limited competition raises concerns about cost efficiency.
- Potential for sole-source dependency if follow-on work is required.
- Complexity of advanced ordnance manufacturing can lead to production challenges.
- Contract performance monitoring is essential due to the critical nature of the item.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, in, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to MAJOR TOOL & MACHINE INC. BLU-136/B NEXT GENERATION AREA ATTACK WARHEAD CASE
Who is the contractor on this award?
The obligated recipient is MAJOR TOOL & MACHINE INC.
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 $24.5 million.
What is the period of performance?
Start: 2025-04-30. End: 2026-11-09.
What is the specific technological advancement of the BLU-136/B warhead case compared to previous models, and how does this justify the investment?
The BLU-136/B represents a next-generation area attack warhead case, implying enhanced lethality, precision, or safety features over older models. While the exact technological leap isn't detailed, such advancements are crucial for maintaining battlefield superiority and reducing collateral damage. The $24.5M investment is likely justified by the strategic military advantage these improved capabilities offer, ensuring U.S. forces remain equipped with state-of-the-art ordnance.
Given the limited competition, what measures are in place to ensure Major Tool & Machine Inc. is not overcharging for the warhead cases?
The contract is Firm Fixed Price, which shifts cost risk to the contractor. However, the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that while competition occurred, it wasn't fully open. Oversight agencies within the DoD will likely monitor production costs and contractor performance. Price reasonableness will be assessed against historical data and industry benchmarks, with potential for audits if significant cost variances arise.
How will the successful production and delivery of these warhead cases impact the Air Force's operational readiness and future combat capabilities?
The successful delivery of the BLU-136/B warhead cases is critical for equipping the Air Force with advanced munitions necessary for modern combat scenarios. These cases are integral to precision strike capabilities, potentially increasing effectiveness against area targets while minimizing unintended harm. Timely delivery ensures that aircrews have access to the latest ordnance, directly enhancing operational readiness and bolstering the Air Force's ability to project power effectively in future conflicts.
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
Parent Company: Maine Machine Products Company
Address: 1458 E 19TH ST, INDIANAPOLIS, IN, 46218
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $24,541,952
Exercised Options: $24,541,952
Current Obligation: $24,541,952
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA868120D0002
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: 2026-02-26
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