DoD awards $32.1M for BLU-137/B warhead production to Superior Forge & Steel Corp

Contract Overview

Contract Amount: $32,146,608 ($32.1M)

Contractor: Superior Forge & Steel Corp

Awarding Agency: Department of Defense

Start Date: 2021-07-01

End Date: 2023-05-31

Contract Duration: 699 days

Daily Burn Rate: $46.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLU-137/B PENETRATOR WARHEAD PRODUCTION FULL RATE PRODUCTION 3

Place of Performance

Location: LIMA, ALLEN County, OHIO, 45804

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $32.1 million to SUPERIOR FORGE & STEEL CORP for work described as: BLU-137/B PENETRATOR WARHEAD PRODUCTION FULL RATE PRODUCTION 3 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for the production of BLU-137/B penetrator warheads, a key component for munitions. 3. The award value of $32.1 million indicates a significant investment in this specific ordnance. 4. The contract duration of 699 days suggests a sustained production requirement. 5. The fixed-price contract type aims to control costs for the government. 6. The award was made by the Department of the Air Force, indicating a specific military need.

Value Assessment

Rating: fair

The award value of $32.1 million for warhead production needs further benchmarking against similar contracts for munitions components. Without specific unit costs or detailed scope of work, a precise value-for-money assessment is challenging. However, the firm fixed-price contract type provides some cost certainty for the government. The base award amount of $4.59 million suggests this initial award is for a portion of the potential work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 5 bidders indicates a healthy level of competition for this defense manufacturing requirement. This competitive environment is generally expected to drive more favorable pricing and terms for the government.

Taxpayer Impact: The full and open competition suggests taxpayers are likely benefiting from a more competitive price discovery process, potentially leading to cost savings compared to a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Air Force, receiving critical warhead components for their munitions. The services delivered include the production and manufacturing of BLU-137/B penetrator warheads. The geographic impact is concentrated in Ohio, where Superior Forge & Steel Corp. is located. Workforce implications include potential job creation or sustained employment at the contractor's facility.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if initial estimates do not fully capture production complexities.
Dependence on a single contractor for a critical warhead component could pose supply chain risks.
The specific performance metrics and quality control measures are not detailed in the provided data.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm fixed-price contract type provides cost predictability for the government.
The contractor, Superior Forge & Steel Corp., is producing a specific, identified defense component.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. The market for specialized ordnance components is often characterized by a limited number of highly capable manufacturers. Government spending in this area is driven by national security requirements and the need to maintain a robust defense industrial base. Comparable spending benchmarks would typically involve analyzing historical awards for similar warhead systems or other high-explosive munitions.

Small Business Impact

The provided data indicates that small business participation was not a primary focus for this specific award, as the 'sb' (small business set-aside) field is false. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor is expected to handle the majority of the production, and the impact on the small business ecosystem may be indirect, potentially through the contractor's own supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated by the public nature of contract awards, though detailed performance data may be restricted. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Air Force Munitions Production
Ordnance Manufacturing Contracts
Defense Industrial Base Support
Warhead Component Production

Risk Flags

Potential supply chain vulnerabilities for specialized materials.
Complexity of manufacturing advanced ordnance components.
Dependence on a single source for critical warhead production.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.1 million to SUPERIOR FORGE & STEEL CORP. BLU-137/B PENETRATOR WARHEAD PRODUCTION FULL RATE PRODUCTION 3

Who is the contractor on this award?

The obligated recipient is SUPERIOR FORGE & STEEL CORP.

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 $32.1 million.

What is the period of performance?

Start: 2021-07-01. End: 2023-05-31.

What is the historical spending pattern for BLU-137/B warhead production by the Department of Defense?

Analyzing historical spending for the BLU-137/B warhead production requires access to historical contract databases. Without specific historical data for this particular warhead, it's difficult to provide precise figures. However, the current award of $32.1 million for a 699-day period suggests a significant, ongoing requirement. Defense spending on munitions components can fluctuate based on geopolitical events, inventory needs, and modernization programs. Typically, such production contracts are awarded periodically to ensure supply chain readiness and to meet operational demands. A comprehensive review would involve examining prior awards for this specific warhead, as well as similar penetrator warhead systems, to identify trends in contract values, quantities, and contractor performance over time.

How does the awarded price compare to similar warhead production contracts?

A direct comparison of the awarded price of $32.1 million for the BLU-137/B warhead production to similar contracts is challenging without access to a detailed database of comparable defense procurements. Key factors influencing price include the specific technical specifications of the warhead, the quantity ordered, the complexity of manufacturing, and the prevailing market conditions for raw materials and skilled labor. The base award amount of $4.59 million suggests this is an initial delivery order, and the total value could increase. To perform a robust benchmark, one would need to identify contracts for warheads with similar penetration capabilities, explosive payloads, and intended delivery platforms, and then normalize for quantity and contract duration. The firm fixed-price nature of this contract provides a degree of cost certainty, but the ultimate value-for-money depends on the negotiated unit prices and the contractor's ability to meet production targets efficiently.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) for this BLU-137/B warhead production contract. However, in defense contracts of this nature, typical KPIs often include on-time delivery rates, adherence to quality specifications (e.g., defect rates, material compliance), production yield, and cost control. The Department of the Air Force would likely have established performance standards within the contract's statement of work. Contractor performance is usually monitored through regular progress reports, inspections, and potentially through formal performance evaluations like Contractor Performance Assessment Reporting System (CPARS). Failure to meet critical KPIs could result in penalties, reduced future opportunities, or contract termination, depending on the severity of the performance issues.

What is Superior Forge & Steel Corp.'s track record with similar defense manufacturing contracts?

Superior Forge & Steel Corp.'s track record with similar defense manufacturing contracts is a crucial factor in assessing the risk and potential success of this award. While the provided data confirms they are the recipient of this $32.1 million contract, it does not offer historical performance details. A thorough assessment would involve reviewing their past performance on contracts for munitions components, ordnance, or other complex metal fabrication for the Department of Defense or other government agencies. This includes examining past CPARS reports, any history of contract disputes, on-time delivery performance, and quality control successes or failures. A strong track record suggests a lower risk of production issues, while a history of performance problems would raise concerns about the government's ability to receive timely and quality delivery.

What are the potential risks associated with the production of the BLU-137/B warhead, and how are they being mitigated?

Potential risks in the production of the BLU-137/B warhead include supply chain disruptions for critical raw materials, manufacturing complexities leading to production delays or quality issues, and potential cost overruns if initial estimates are inaccurate, despite the firm fixed-price structure. Mitigation strategies typically involve robust quality assurance protocols, detailed production planning, proactive supplier management to ensure material availability, and contingency planning for unforeseen challenges. The government's oversight, including regular progress reviews and inspections, also serves as a mitigation measure. Furthermore, the competitive nature of the award may incentivize the contractor to proactively manage risks to ensure profitability and maintain a positive performance record for future opportunities.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA868117R0036

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1820 MC CLAIN RD, LIMA, OH, 45804

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

Financial Breakdown

Contract Ceiling: $32,146,608

Exercised Options: $32,146,608

Current Obligation: $32,146,608

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA868118D0018

IDV Type: IDC

Timeline