DoD Awards $9.9M Antimony Metal Contract to United States Antimony Corporation, Lacking Competition
Contract Overview
Contract Amount: $9,948,099 ($9.9M)
Contractor: United States Antimony Corporation
Awarding Agency: Department of Defense
Start Date: 2025-09-26
End Date: 2027-09-25
Contract Duration: 729 days
Daily Burn Rate: $13.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Other
Official Description: ANTIMONY METAL INGOTS FIRST DELIVERY ORDER.
Place of Performance
Location: THOMPSON FALLS, SANDERS County, MONTANA, 59873
State: Montana Government Spending
Plain-Language Summary
Department of Defense obligated $9.9 million to UNITED STATES ANTIMONY CORPORATION for work described as: ANTIMONY METAL INGOTS FIRST DELIVERY ORDER. Key points: 1. Significant award for a niche material, Antimony Metal Ingots. 2. Sole supplier identified, raising concerns about price discovery and market leverage. 3. Potential for price volatility due to economic price adjustment clause. 4. Limited competition suggests a high-risk procurement environment.
Value Assessment
Rating: questionable
The contract's value is $9.9 million. Without competitive bids, it's difficult to assess if this price is optimal. The economic price adjustment clause introduces further uncertainty regarding the final cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits the government's ability to secure the best possible price and may lead to inflated costs.
Taxpayer Impact: Taxpayers may bear higher costs due to the absence of competitive bidding and the inclusion of an economic price adjustment clause.
Public Impact
Ensures supply of a critical, albeit specialized, material for defense needs. Potential for higher costs impacts overall defense budget allocation. Lack of competition may stifle innovation and market development for antimony sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Economic price adjustment
- Lack of competition
Positive Signals
- Ensures supply of critical material
Sector Analysis
The procurement falls under the 'Secondary Smelting, Refining, and Alloying of Nonferrous Metal' sector. Specific spending benchmarks for antimony metal ingots are not readily available, but the award size suggests a significant, potentially sole-source, requirement.
Small Business Impact
The data indicates no small business participation in this contract. The award to a single, likely established, supplier suggests limited opportunities for smaller businesses in this specific procurement.
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 the economic price adjustment closely.
Related Government Programs
- Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Sole-source award limits price competition.
- Economic price adjustment introduces cost uncertainty.
- Lack of small business participation.
- Potential for overpayment without competitive benchmarking.
Tags
secondary-smelting-refining-and-alloying, department-of-defense, mt, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $9.9 million to UNITED STATES ANTIMONY CORPORATION. ANTIMONY METAL INGOTS FIRST DELIVERY ORDER.
Who is the contractor on this award?
The obligated recipient is UNITED STATES ANTIMONY CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $9.9 million.
What is the period of performance?
Start: 2025-09-26. End: 2027-09-25.
What is the strategic importance of antimony metal ingots to the Department of Defense, justifying a sole-source award?
Antimony is a critical component in various defense applications, including flame retardants, batteries, and alloys for munitions. Its strategic importance may stem from specific defense systems requiring its unique properties, leading the DoD to identify a limited number of qualified suppliers, potentially resulting in a sole-source procurement to ensure supply chain stability for these vital applications.
How will the economic price adjustment clause be managed to mitigate taxpayer risk in this sole-source contract?
The economic price adjustment clause allows for changes in contract price based on fluctuations in specific economic factors, such as raw material costs. To mitigate taxpayer risk, the contracting officer must rigorously monitor the indices used for adjustment, ensure they accurately reflect market conditions, and negotiate fair adjustment caps. Transparency in reporting these adjustments is crucial for accountability.
What steps are being taken to explore competitive sourcing options for antimony metal ingots in the future?
Given the current sole-source award, the Defense Logistics Agency should proactively research the market for antimony metal ingots to identify potential new suppliers or encourage existing ones to scale up. This could involve market research studies, engaging with industry associations, and potentially issuing broad agency announcements to gauge interest and capability for future competitive procurements.
Industry Classification
NAICS: Manufacturing › Nonferrous Metal (except Aluminum) Production and Processing › Secondary Smelting, Refining, and Alloying of Nonferrous Metal (except Copper and Aluminum)
Product/Service Code: ORES, MINERALS AND PRIMARY PRODUCTS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 47 COX GULCH RD, THOMPSON FALLS, MT, 59873
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $9,948,099
Exercised Options: $9,948,099
Current Obligation: $9,948,099
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP800025D0007
IDV Type: IDC
Timeline
Start Date: 2025-09-26
Current End Date: 2027-09-25
Potential End Date: 2027-09-25 00:00:00
Last Modified: 2026-01-15
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