DoD awards $7.7M for electronic safe arm fuzes, a sole-source purchase order to Levison Enterprises LLC

Contract Overview

Contract Amount: $7,695,038 ($7.7M)

Contractor: Levison Enterprises LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-11

End Date: 2026-01-16

Contract Duration: 158 days

Daily Burn Rate: $48.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ELECTRONIC SAFE ARM FUZES (ESAF)

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $7.7 million to LEVISON ENTERPRISES LLC for work described as: ELECTRONIC SAFE ARM FUZES (ESAF) Key points: 1. The contract value of $7.7 million for electronic safe arm fuzes represents a significant investment in specialized ordnance. 2. Competition dynamics are limited, as this was a sole-source award, potentially impacting price negotiation. 3. Risk indicators are moderate, given the specialized nature of the product and the single-source supplier. 4. Performance context suggests a need for reliable fuzing systems for naval operations. 5. Sector positioning places this contract within the defense manufacturing sub-sector, specifically explosives. 6. The firm fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging due to the specialized nature of electronic safe arm fuzes and the sole-source award. Without competitive bids, it's difficult to definitively assess if the $7.7 million price represents optimal value for money. However, the contract value is relatively modest for a defense procurement, suggesting it may be for a specific quantity or a niche application. Further analysis would require comparing unit costs to similar, if available, fuzing systems or historical pricing for this specific item.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning only one vendor, Levison Enterprises LLC, was solicited. The data indicates it was 'NOT COMPETED UNDER SAP' (Small Acquisition Program), which typically allows for simplified acquisition procedures but does not inherently preclude competition. The lack of competition means the government did not benefit from multiple offers, which could have driven down prices or offered alternative solutions. This approach is often used when a specific capability or product is only available from a single source.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the most competitive pricing. Without a competitive bidding process, there is a risk that the price paid is higher than it would have been if multiple companies had vied for the contract.

Public Impact

The Department of the Navy is the primary beneficiary, receiving critical components for its operational readiness. The services delivered involve the manufacturing and supply of electronic safe arm fuzes, essential for ordnance safety and functionality. The geographic impact is primarily within Indiana, where Levison Enterprises LLC is located, contributing to local economic activity. Workforce implications include potential job retention or creation at the contractor's facility in Indiana.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases cost to taxpayers.
Lack of competition may reduce opportunities for innovation from other potential suppliers.
Dependence on a single supplier can create supply chain risks.
The specific application and quantity of fuzes are not detailed, making value assessment difficult.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Award to an existing supplier may indicate a proven track record for this specific item.
The contract duration of approximately 1.5 years allows for timely delivery of needed components.

Sector Analysis

The defense sector, particularly the sub-sector of explosives manufacturing, is characterized by high barriers to entry due to stringent safety regulations, specialized knowledge, and significant capital investment. Contracts for components like electronic safe arm fuzes are critical for maintaining the operational readiness of military forces. Spending in this area is driven by defense budgets and specific platform requirements. Comparable spending benchmarks are difficult to establish without more detailed product specifications and market data, but the $7.7 million award suggests a moderate-sized procurement for specialized ordnance components.

Small Business Impact

This contract was not awarded to a small business, and there is no indication of small business set-aside provisions. Levison Enterprises LLC is likely a large business, given the contract value. There is no information provided regarding subcontracting plans to small businesses. Therefore, this award does not appear to directly benefit the small business ecosystem through prime contracting or explicit subcontracting requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. As a purchase order, it is subject to standard procurement regulations and oversight. Accountability measures would include performance monitoring against the contract's terms and delivery schedules. Transparency is limited due to the sole-source nature and the lack of a competitive bidding process. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Ordnance Procurement
Naval Weapons Systems
Explosives and Ammunition Manufacturing
Defense Industrial Base Suppliers

Risk Flags

Sole-source award
Potential for higher cost due to lack of competition
Supply chain dependency on a single vendor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.7 million to LEVISON ENTERPRISES LLC. ELECTRONIC SAFE ARM FUZES (ESAF)

Who is the contractor on this award?

The obligated recipient is LEVISON ENTERPRISES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $7.7 million.

What is the period of performance?

Start: 2025-08-11. End: 2026-01-16.

What is the specific operational purpose and quantity of these electronic safe arm fuzes?

The provided data does not specify the exact operational purpose or the quantity of electronic safe arm fuzes (ESAF) being procured under this $7.7 million contract. Electronic safe arm fuzes are critical safety components in ordnance, designed to prevent accidental detonation during handling, storage, and transport, and to ensure detonation only occurs when intended. They are used in a wide variety of munitions, including missiles, bombs, and artillery shells. The specific quantity would be a key factor in determining the per-unit cost and overall value for money. Without this information, it's difficult to assess if the $7.7 million represents a fair price for the number of units delivered or if it aligns with typical procurement volumes for such components.

What is Levison Enterprises LLC's track record with similar defense contracts?

Levison Enterprises LLC has a history of providing defense-related products, including fuzes and ordnance components. While specific details on past performance for electronic safe arm fuzes are not provided in this data snippet, their selection as a sole-source provider suggests they possess the necessary certifications, manufacturing capabilities, and potentially a prior relationship or unique qualification for this specific item. A deeper dive into their contract history with the Department of Defense and other agencies would reveal their performance metrics, delivery timeliness, and quality control standards on previous awards, which are crucial for assessing reliability on this current contract.

How does the $7.7 million contract value compare to historical spending on ESAF by the DoD?

Comparing the $7.7 million contract value for electronic safe arm fuzes (ESAF) to historical Department of Defense (DoD) spending requires access to broader procurement databases and specific product identification. ESAF is a category of components, and spending can vary significantly based on the specific type of fuze, the platform it's intended for (e.g., aircraft bombs, naval missiles), and the quantity ordered. Without knowing the exact model or specification of the ESAF being procured, a direct historical comparison is difficult. However, $7.7 million represents a substantial, though not exceptionally large, single award for specialized defense components. Historical data might show similar or larger sole-source awards for critical ordnance items where only a few manufacturers exist.

What are the primary risks associated with a sole-source award for critical defense components like ESAF?

The primary risks associated with a sole-source award for critical defense components like electronic safe arm fuzes (ESAF) include inflated pricing due to lack of competition, potential for complacency from the sole supplier regarding quality or delivery timelines, and supply chain vulnerability. Without competitive pressure, the government may pay a premium. Furthermore, if the sole supplier faces production issues, quality control failures, or financial instability, it could lead to significant delays or disruptions in the supply of essential ordnance components, impacting military readiness. This also limits the government's ability to leverage innovation from a broader industrial base.

Are there any alternative suppliers or technologies for ESAF that the DoD could have considered?

The decision for a sole-source award implies that, at the time of procurement, the Department of the Navy determined that Levison Enterprises LLC was the only source capable of meeting the requirement. This could be due to proprietary technology, unique manufacturing processes, specific certifications, or existing integration with naval systems. However, it is standard practice for defense agencies to periodically review the market for potential competition. Without specific details on why this was sole-sourced, it's difficult to definitively state if alternatives exist. Generally, the defense industrial base is constantly evolving, and research and development efforts may lead to new suppliers or competing technologies emerging over time, which could be explored in future procurements.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives Manufacturing

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4470 MOLINE MARTIN RD, MILLBURY, OH, 43447

Business Categories: Category Business, Manufacturer of Goods, Small Business, Sole Proprietorship, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,695,038

Exercised Options: $7,695,038

Current Obligation: $7,695,038

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline