DoD awards $8.6M for Tantalum Ingots to Global Advanced Metals USA Inc
Contract Overview
Contract Amount: $8,610,400 ($8.6M)
Contractor: Global Advanced Metals USA Inc
Awarding Agency: Department of Defense
Start Date: 2025-09-11
End Date: 2028-09-09
Contract Duration: 1,094 days
Daily Burn Rate: $7.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TANTALUM INGOTS
Place of Performance
Location: BOYERTOWN, BERKS County, PENNSYLVANIA, 19512
Plain-Language Summary
Department of Defense obligated $8.6 million to GLOBAL ADVANCED METALS USA INC for work described as: TANTALUM INGOTS Key points: 1. Significant award for a critical raw material. 2. Sole supplier identified, raising competition concerns. 3. Long-term contract (2025-2028) suggests ongoing need. 4. Potential for price volatility in the metals market.
Value Assessment
Rating: fair
The award amount of $8.6M over approximately 4 years is difficult to benchmark without specific quantity and grade details. However, given the specialized nature of tantalum, pricing is likely influenced by global market conditions and limited production capacity.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition scenario. This limits price discovery and potentially leads to higher costs for the government compared to a competitive bidding process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these essential materials.
Public Impact
Ensures supply of a critical material for defense applications. Potential for price increases due to lack of competition. Dependence on a single supplier could pose supply chain risks. Supports a specialized industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Potential market volatility
Positive Signals
- Ensures critical material supply
- Supports specialized manufacturer
Sector Analysis
This award falls within the Nonferrous Metal Smelting and Refining sector. Spending in this area is crucial for defense manufacturing, but often subject to global commodity price fluctuations and geopolitical supply chain risks.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as the prime contractor or potentially as subcontractors. Further analysis would be needed to determine any indirect small business participation.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure fair pricing and prevent potential overspending. The Defense Logistics Agency should monitor market trends and explore future competitive opportunities.
Related Government Programs
- Nonferrous Metal (except Aluminum) Smelting and Refining
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits competition.
- Long-term contract duration.
- Potential for price volatility in the metals market.
- Lack of transparency on specific quantity and grade.
- No indication of small business participation.
Tags
nonferrous-metal-except-aluminum-smeltin, department-of-defense, pa, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.6 million to GLOBAL ADVANCED METALS USA INC. TANTALUM INGOTS
Who is the contractor on this award?
The obligated recipient is GLOBAL ADVANCED METALS USA INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $8.6 million.
What is the period of performance?
Start: 2025-09-11. End: 2028-09-09.
What is the estimated per-unit cost of the tantalum ingots, and how does it compare to market benchmarks?
Without specific quantity and grade information, a precise per-unit cost cannot be determined. However, given the sole-source nature and the specialized market for tantalum, the price is likely at the higher end of market rates. Further investigation into market indices for comparable tantalum grades is recommended to assess value.
What are the specific risks associated with relying on a single supplier for tantalum ingots, particularly for defense applications?
Reliance on a single supplier creates significant supply chain vulnerability. Risks include potential production disruptions, price gouging, and geopolitical leverage. For defense, this could impact readiness and national security if the supply is interrupted or becomes prohibitively expensive.
How effective is the current contracting strategy in ensuring a stable and cost-effective supply of tantalum for the Department of Defense?
The current sole-source strategy ensures immediate supply but is likely not cost-effective in the long run. While it meets the immediate need, it forfeits the benefits of competition, potentially leading to higher costs and increased risk. Exploring options for future competition or strategic sourcing is crucial for long-term effectiveness.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Nonferrous Metal (except Aluminum) Smelting and Refining
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Global Advanced Metals USA, Inc.
Address: 1223 COUNTY LINE RD, BOYERTOWN, PA, 19512
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $108,610,400
Exercised Options: $8,610,400
Current Obligation: $8,610,400
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SP800025D0005
IDV Type: IDC
Timeline
Start Date: 2025-09-11
Current End Date: 2028-09-09
Potential End Date: 2028-09-09 00:00:00
Last Modified: 2026-01-06
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