DoD Awards $48M for BLU-111 ECP Production to Grand Valley Manufacturing Co
Contract Overview
Contract Amount: $48,079,939 ($48.1M)
Contractor: Grand Valley Manufacturing CO
Awarding Agency: Department of Defense
Start Date: 2022-06-30
End Date: 2023-12-29
Contract Duration: 547 days
Daily Burn Rate: $87.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BLU-111 ECP PRODUCTION 1
Place of Performance
Location: TITUSVILLE, CRAWFORD County, PENNSYLVANIA, 16354
Plain-Language Summary
Department of Defense obligated $48.1 million to GRAND VALLEY MANUFACTURING CO for work described as: BLU-111 ECP PRODUCTION 1 Key points: 1. Contract awarded to Grand Valley Manufacturing Co. for $48.1M. 2. Ammunition manufacturing sector, specifically for BLU-111 ECP. 3. Full and open competition was utilized. 4. Delivery order under an existing contract. 5. No small business participation noted.
Value Assessment
Rating: fair
The contract value of $48.1M for BLU-111 ECP production appears to be within a reasonable range for specialized ordnance manufacturing. Benchmarking against similar advanced munitions development and production contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: Taxpayer funds are being utilized for defense procurement. The competitive nature of the award aims to ensure efficient use of these funds for critical munitions.
Public Impact
Ensures continued production of essential munitions for the Air Force. Supports a specific manufacturing capability within the defense industrial base. Highlights the role of competitive bidding in defense contracting. Potential for follow-on orders based on performance and need.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Specific munition type may have limited suppliers.
- Reliance on delivery orders can obscure overall contract value trends.
Positive Signals
- Awarded via full and open competition.
- Clear end-date for this specific delivery order.
- Firm fixed price contract provides cost certainty.
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 military readiness requirements and technological upgrades to existing ordnance.
Small Business Impact
The data indicates no small business participation in this specific contract award. Efforts to ensure small businesses have opportunities in the defense supply chain, particularly in specialized manufacturing, may be warranted.
Oversight & Accountability
The use of a delivery order under an existing contract suggests prior oversight. However, ongoing monitoring of performance, cost, and adherence to the firm fixed price terms is crucial for accountability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost creep if not managed tightly.
- Dependence on specific manufacturing capabilities.
- Limited visibility into the overall contract vehicle.
- No small business involvement.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.1 million to GRAND VALLEY MANUFACTURING CO. BLU-111 ECP PRODUCTION 1
Who is the contractor on this award?
The obligated recipient is GRAND VALLEY MANUFACTURING CO.
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 $48.1 million.
What is the period of performance?
Start: 2022-06-30. End: 2023-12-29.
What is the historical cost performance of Grand Valley Manufacturing Co. on similar defense contracts?
Analyzing Grand Valley Manufacturing Co.'s past performance on comparable defense contracts is essential for assessing their reliability and cost-effectiveness. A review of previous awards, delivery timelines, and any cost overruns or underruns would provide valuable insights into their capabilities and pricing strategies, helping to validate the current contract's value and mitigate future risks.
Are there any identified risks associated with the BLU-111 ECP's technological maturity or supply chain for this specific production run?
Assessing the technological maturity of the BLU-111 ECP and the stability of its supply chain is critical. Risks could include obsolescence of components, reliance on single-source suppliers for critical parts, or unforeseen production challenges. Understanding these factors helps determine the likelihood of successful and timely delivery, and potential cost impacts.
How does the unit cost of the BLU-111 ECP under this contract compare to similar advanced munitions programs?
Benchmarking the unit cost of the BLU-111 ECP against comparable advanced munitions programs is key to evaluating its cost-effectiveness. Differences in complexity, technology, production volume, and contract type can influence pricing. A thorough comparison would reveal if this contract represents a fair market price or if there are opportunities for cost savings in future procurements.
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
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 701 E SPRING ST, TITUSVILLE, PA, 16354
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,079,939
Exercised Options: $48,079,939
Current Obligation: $48,079,939
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA865622DA006
IDV Type: IDC
Timeline
Start Date: 2022-06-30
Current End Date: 2023-12-29
Potential End Date: 2023-12-29 00:00:00
Last Modified: 2023-10-02
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