DoD Awards $166M Contract for Massive Ordnance Penetrator Warhead Cases to Superior Forge & Steel Corp

Contract Overview

Contract Amount: $16,620,180 ($16.6M)

Contractor: Superior Forge & Steel Corp

Awarding Agency: Department of Defense

Start Date: 2023-09-16

End Date: 2025-11-30

Contract Duration: 806 days

Daily Burn Rate: $20.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MASSIVE ORDNANCE PENETRATOR WARHEAD CASES

Place of Performance

Location: LIMA, ALLEN County, OHIO, 45804

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to SUPERIOR FORGE & STEEL CORP for work described as: MASSIVE ORDNANCE PENETRATOR WARHEAD CASES Key points: 1. The contract is for warhead cases for the Massive Ordnance Penetrator, a significant munition. 2. Superior Forge & Steel Corp is the sole awardee, raising questions about competition. 3. The contract value is substantial at $166.2 million. 4. The duration extends to November 2025, indicating a long-term need.

Value Assessment

Rating: questionable

The contract value of $166.2 million is significant. Without comparable contract data for similar specialized warhead cases, it is difficult to definitively assess pricing fairness. The firm-fixed-price structure provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach limits price discovery and potentially increases costs for taxpayers as competitive pressures are absent.

Taxpayer Impact: The lack of competition for this substantial contract may result in higher costs for taxpayers compared to a fully competed procurement.

Public Impact

Ensures readiness for strategic air capabilities by providing critical components for advanced munitions. Supports a specific defense contractor, potentially impacting regional employment. Highlights the specialized nature of defense manufacturing and supply chains. Raises concerns about the cost-effectiveness of sole-source defense procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
Lack of transparency in pricing due to non-competitive nature.
Potential for cost overruns without competitive pressure.

Positive Signals

Ensures supply of critical warhead components.
Firm-fixed-price contract provides cost predictability.
Supports a US-based manufacturer.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition components. Spending in this area is driven by national security requirements and the development of advanced weaponry. Benchmarks are difficult to establish due to the highly specialized nature of the product.

Small Business Impact

The awardee, Superior Forge & Steel Corp, is not identified as a small business. This contract does not appear to include specific provisions or set-asides for small business participation.

Oversight & Accountability

The Department of the Air Force is the contracting activity. Oversight will focus on contract performance, delivery schedules, and adherence to the firm-fixed-price terms. The sole-source nature warrants scrutiny regarding justification and fair pricing.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Sole-source award lacks competitive pricing.
Potential for inflated costs due to non-competition.
Limited transparency on cost justification.
Long contract duration increases exposure to price changes if not adequately fixed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to SUPERIOR FORGE & STEEL CORP. MASSIVE ORDNANCE PENETRATOR WARHEAD CASES

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 $16.6 million.

What is the period of performance?

Start: 2023-09-16. End: 2025-11-30.

What is the justification for the sole-source award of this critical warhead case contract?

The justification for a sole-source award typically involves factors such as unique capabilities, proprietary technology, or urgent and compelling needs where only one source can reasonably fulfill the requirement. Without specific documentation, it's presumed the Air Force determined Superior Forge & Steel Corp possessed the exclusive ability to produce these specialized warhead cases to meet program specifications and timelines.

How does the firm-fixed-price structure mitigate risks associated with a sole-source award for these specialized components?

A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed, shifting most of the risk to the contractor. While it provides cost predictability for the government, it doesn't inherently guarantee the 'best' price, especially in a sole-source scenario. The government still bears the risk of paying a potentially inflated price if the baseline cost was not rigorously assessed or negotiated.

What is the long-term strategic value of securing a reliable supply chain for Massive Ordnance Penetrator warhead cases?

Securing a reliable supply chain for advanced munitions like the Massive Ordnance Penetrator is strategically vital for maintaining deterrence and ensuring operational readiness. These weapons are designed for deep penetration of hardened targets, making them crucial for specific mission profiles. Consistent availability of components like warhead cases ensures the Air Force can deploy these capabilities effectively when needed.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $16,620,180

Exercised Options: $16,620,180

Current Obligation: $16,620,180

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA868120D0020

IDV Type: IDC

Timeline