DoD Awards $2.6M for Prefabricated Metal Buildings to Armag Corp Under Full and Open Competition
Contract Overview
Contract Amount: $2,638,724 ($2.6M)
Contractor: Armag Corp
Awarding Agency: Department of Defense
Start Date: 2025-03-30
End Date: 2025-09-30
Contract Duration: 184 days
Daily Burn Rate: $14.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ARMORIES AND MAGAZINES
Place of Performance
Location: BARDSTOWN, NELSON County, KENTUCKY, 40004
State: Kentucky Government Spending
Plain-Language Summary
Department of Defense obligated $2.6 million to ARMAG CORP for work described as: ARMORIES AND MAGAZINES Key points: 1. The contract is for armories and magazines, a niche but critical component for military readiness. 2. Armag Corp, the sole awardee, faces competition from other manufacturers in the prefabricated metal building sector. 3. Potential risks include supply chain disruptions and the need for specialized construction expertise. 4. The spending falls within the broader construction and defense manufacturing sectors.
Value Assessment
Rating: good
The award price of $2.64 million for 184 days of work appears reasonable given the specialized nature of armories and magazines. Benchmarking against similar DoD contracts for prefabricated secure structures would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is expected to yield fair market prices and ensure the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive process for essential defense infrastructure.
Public Impact
Enhances military readiness by providing secure storage for weapons and ammunition. Supports domestic manufacturing and jobs within the prefabricated building industry. Ensures compliance with stringent security and durability standards for defense facilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if material prices increase significantly.
- Dependence on a single supplier for specialized components.
- Delivery timeline may be impacted by unforeseen logistical challenges.
Positive Signals
- Awarded through full and open competition, indicating a competitive price.
- Clear delivery dates suggest a well-defined project scope.
- Contract is firm-fixed-price, providing cost certainty.
Sector Analysis
This contract falls under the construction and defense manufacturing sectors, specifically focusing on prefabricated metal buildings. Benchmarks for similar secure facility construction projects would be relevant for a deeper analysis.
Small Business Impact
While the awardee is Armag Corp, the data does not indicate if they are a small business. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
The Department of the Navy's oversight is crucial to ensure timely delivery, quality construction, and adherence to security specifications. Regular progress reports and site inspections would be standard oversight mechanisms.
Related Government Programs
- Prefabricated Metal Building and Component Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for supply chain disruptions impacting delivery.
- Dependence on a single awardee for specialized construction.
- Need for rigorous quality control to meet security standards.
- Risk of cost escalation if material prices fluctuate unexpectedly.
Tags
prefabricated-metal-building-and-compone, department-of-defense, ky, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.6 million to ARMAG CORP. ARMORIES AND MAGAZINES
Who is the contractor on this award?
The obligated recipient is ARMAG CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $2.6 million.
What is the period of performance?
Start: 2025-03-30. End: 2025-09-30.
What is the typical cost per square foot for prefabricated armories of this type, and how does Armag Corp's pricing compare?
Determining the exact cost per square foot is challenging without detailed specifications like size, insulation, and security features. However, industry averages for secure prefabricated structures can range significantly. A comparative analysis against similar DoD contracts awarded through full and open competition would be necessary to assess if Armag Corp's pricing is competitive and reflects fair market value for the specified security and durability requirements.
What are the primary risks associated with the supply chain for specialized components needed for these armories, and what mitigation strategies are in place?
Primary supply chain risks include potential shortages or price volatility of specialized steel, security hardware, and advanced locking mechanisms. Mitigation strategies could involve pre-ordering critical materials, identifying alternative suppliers, and building buffer stock. The Department of the Navy likely has contingency plans to address potential delays or disruptions to ensure project completion.
How effectively does this contract contribute to the Department of the Navy's long-term infrastructure goals and readiness posture?
This contract directly contributes to the Navy's readiness by providing secure, modern facilities for storing sensitive equipment and munitions. By addressing infrastructure needs through competitive procurement, it ensures taxpayer funds are used efficiently. The timely completion of these armories will bolster operational capabilities and reduce risks associated with inadequate storage solutions.
Industry Classification
NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Prefabricated Metal Building and Component Manufacturing
Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0017422R0014
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 300 ARMAG AVE, BARDSTOWN, KY, 40004
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,638,724
Exercised Options: $2,638,724
Current Obligation: $2,638,724
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017422D0031
IDV Type: IDC
Timeline
Start Date: 2025-03-30
Current End Date: 2025-09-30
Potential End Date: 2027-09-30 00:00:00
Last Modified: 2026-01-06
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