DoD awards $1.1M for .50 Caliber Ammunition to OCR Global Inc

Contract Overview

Contract Amount: $11,062,086 ($11.1M)

Contractor: OCR Global Inc.

Awarding Agency: Department of Defense

Start Date: 2024-11-18

End Date: 2026-03-31

Contract Duration: 498 days

Daily Burn Rate: $22.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: .50 CALIBER LINKED, 4 BALL, 1 TRACER AMMUNITION

Plain-Language Summary

Department of Defense obligated $11.1 million to OCR GLOBAL INC. for work described as: .50 CALIBER LINKED, 4 BALL, 1 TRACER AMMUNITION Key points: 1. Contract awarded for .50 caliber linked ammunition, including ball and tracer rounds. 2. Full and open competition was utilized for this delivery order. 3. The contract spans from November 2024 to March 2026. 4. The North American Industry Classification System (NAICS) code is 332992 (Small Arms Ammunition Manufacturing).

Value Assessment

Rating: fair

The contract value of $1.1M for ammunition over approximately 1.5 years appears reasonable, but without specific per-unit cost data or historical benchmarks for this exact type of ammunition, a precise valuation is difficult. Pricing is likely influenced by raw material costs and manufacturing complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust price discovery process. Multiple bidders likely submitted proposals, allowing the Department of the Navy to select the most advantageous offer based on price and other factors. This method generally promotes competitive pricing.

Taxpayer Impact: Taxpayer funds are being used for essential military supplies. The competitive nature of the award aims to ensure efficient use of these funds, though the final price reflects market conditions and specific product requirements.

Public Impact

Ensures supply of critical ammunition for naval operations. Supports defense readiness and personnel safety. Procurement process aims for cost-effectiveness through competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific per-unit cost data for detailed value analysis.
Potential for price fluctuations in raw materials affecting final cost.

Positive Signals

Awarded under full and open competition.
Clear delivery timeline and defined product specifications.
Supports essential military operational needs.

Sector Analysis

This contract falls under the defense sector, specifically for the manufacturing of small arms ammunition. Spending in this area is driven by military readiness requirements and geopolitical factors. Benchmarks for ammunition pricing can vary significantly based on caliber, type (ball, tracer, armor-piercing), quantity, and manufacturer.

Small Business Impact

The data indicates that neither small business set-aside nor subcontracting goals were specified for this contract. This suggests that the primary awardee, OCR Global Inc., is likely not a small business, or if it is, the contract was not specifically reserved for small business participation.

Oversight & Accountability

The Department of the Navy is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance with terms, quality standards, and timely delivery. Performance monitoring will be key.

Related Government Programs

Small Arms Ammunition Manufacturing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of detailed cost breakdown.
Potential raw material price volatility.
No specific small business participation noted.
Limited visibility into specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to OCR GLOBAL INC.. .50 CALIBER LINKED, 4 BALL, 1 TRACER AMMUNITION

Who is the contractor on this award?

The obligated recipient is OCR GLOBAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2024-11-18. End: 2026-03-31.

What is the specific per-unit cost for the ball and tracer rounds, and how does it compare to industry benchmarks for similar ammunition?

The provided data does not include specific per-unit costs for the ball and tracer ammunition. A detailed analysis would require access to the awarded price breakdown. Comparing this to industry benchmarks would involve researching current market prices for .50 caliber ammunition from various manufacturers, considering factors like quantity discounts, material costs, and specific performance requirements outlined in the contract.

What are the potential risks associated with the supply chain for raw materials used in this ammunition, and how are they being mitigated?

Risks include potential shortages or price volatility of key materials like copper, lead, and propellants, influenced by global demand and geopolitical events. Mitigation strategies might involve diversifying suppliers, maintaining strategic stockpiles, or using alternative materials where feasible. The contract's duration and fixed-price nature could expose the contractor to these risks if not adequately managed.

How effectively does this ammunition procurement contribute to the Department of the Navy's overall operational readiness and mission accomplishment?

This procurement directly supports the operational readiness of naval forces by ensuring a supply of critical .50 caliber ammunition. This caliber is used in various platforms for defense and offensive capabilities. Timely delivery and quality assurance are crucial for mission accomplishment, ensuring personnel have the necessary resources to execute their duties effectively.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0016422RJN03

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4116 WALNEY RD STE D, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,062,086

Exercised Options: $11,062,086

Current Obligation: $11,062,086

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0016424DJN03

IDV Type: IDC

Timeline