DoD's $10.3M contract for ammunition manufacturing awarded to North American Aerodynamics, Inc

Contract Overview

Contract Amount: $10,337,047 ($10.3M)

Contractor: North American Aerodynamics, Inc.

Awarding Agency: Department of Defense

Start Date: 2004-03-15

End Date: 2010-12-14

Contract Duration: 2,465 days

Daily Burn Rate: $4.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200407!000603!2100!W15QKN!TACOM - PICATINNY !W15QKN04C1082 !A!N! !N! ! !20040315!20080930!011262789!011262789!011262789!N!NORTH AMERICAN AERODYNAMICS !110 CARVER DR !ROXBORO !NC!27573!58160!145!37!ROXBORO !PERSON !N CAROLINA!+000001264971!N!N!000000000000!1315!AMMUNITION, 75 MM THROUGH 125 MM !S1 !SERVICES !000 !* !332992!E! !3! ! ! ! ! !99990909!B! ! !B! !A!N!J!2!003!C! !Z!N!Z! ! !N!B!N!N! ! !A! !A!A!00 !A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: ROXBORO, PERSON County, NORTH CAROLINA, 27573

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $10.3 million to NORTH AMERICAN AERODYNAMICS, INC. for work described as: 200407!000603!2100!W15QKN!TACOM - PICATINNY !W15QKN04C1082 !A!N! !N! ! !20040315!20080930!011262789!011262789!011262789!N!NORTH AMERICAN AERODYNAMICS !110 CARVER DR !ROXBORO !NC!27573!58160!145!37!ROXBORO !PERS… Key points: 1. Contract value of $10.3 million for ammunition manufacturing. 2. Awarded by the Department of Defense, managed by DCMA. 3. Contract duration of approximately 6.8 years. 4. Procurement type: Firm Fixed Price. 5. Competed under Full and Open Competition. 6. North American Aerodynamics, Inc. is the sole awardee. 7. Ammunition type: 75mm through 125mm. 8. Small business set-aside status: Not Applicable.

Value Assessment

Rating: fair

The contract value of $10.3 million for ammunition manufacturing over nearly 7 years suggests a moderate annual spend. Without specific details on the quantity and type of ammunition produced, a direct value-for-money assessment is challenging. However, the firm fixed-price nature indicates that the contractor assumes the risk for cost overruns, which can be beneficial for the government. Benchmarking against similar contracts for ammunition manufacturing would provide a clearer picture of whether this price point is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows 3 bids were received. A higher number of bids generally suggests more robust competition, which can lead to better pricing and innovation. With three bidders, there was some level of competition, but it's not as extensive as might be seen in larger, more broadly competed procurements.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring the government receives offers from multiple qualified vendors.

Public Impact

The primary beneficiaries are the U.S. military units requiring the specified ammunition. The contract delivers essential munitions for training and operational readiness. The geographic impact is primarily centered around the contractor's facility in North Carolina. Workforce implications include employment opportunities at North American Aerodynamics, Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition remains limited.
Dependence on a single contractor for a specific type of ammunition could pose supply chain risks.
Limited transparency on the specific performance metrics and quality control measures for the ammunition produced.

Positive Signals

Awarded under full and open competition, suggesting a fair process.
Firm Fixed Price contract shifts cost risk to the contractor.
Contract duration provides stability for supply and planning.
Contractor is located within the United States (North Carolina).

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. The North American Industry Classification System (NAICS) code 332992, Small Arms Ammunition Manufacturing, represents a niche but critical part of the defense industrial base. Spending in this area is driven by military readiness requirements and modernization efforts. Comparable spending benchmarks would involve analyzing other contracts for similar caliber ammunition or related ordnance manufacturing.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb: false' field. North American Aerodynamics, Inc. is identified as the prime contractor. There is no explicit information provided regarding subcontracting plans or goals for small businesses within this specific award. Therefore, the direct impact on the small business ecosystem from this particular contract is not detailed, though the prime contractor's own size and business structure would be a factor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency regarding specific performance metrics and quality assurance processes would be detailed in the contract's statement of work and subsequent performance reports, which are not publicly detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Ammunition Procurement
Ordnance and Small Arms Manufacturing
Defense Contract Management Agency Contracts
Firm Fixed Price Defense Contracts

Risk Flags

Limited competition (3 bidders)
Lack of detailed performance metrics in summary data
Potential supply chain single-source risk if contractor capabilities are unique

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.3 million to NORTH AMERICAN AERODYNAMICS, INC.. 200407!000603!2100!W15QKN!TACOM - PICATINNY !W15QKN04C1082 !A!N! !N! ! !20040315!20080930!011262789!011262789!011262789!N!NORTH AMERICAN AERODYNAMICS !110 CARVER DR !ROXBORO !NC!27573!58160!145!37!ROXBORO !PERSON !N CAROLINA!+000001264971!N!N!000000000000!1315!AMMUNITION, 75 MM THROUGH 125 MM !S1 !SERVICES !000 !* !332992!E! !3! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is NORTH AMERICAN AERODYNAMICS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2004-03-15. End: 2010-12-14.

What is the specific type and quantity of ammunition covered by this contract?

The contract specifies ammunition ranging from 75mm through 125mm. However, the exact quantities for each caliber or the total number of rounds are not detailed in the provided data. This level of specificity is crucial for a comprehensive analysis of unit cost and overall value. Without this information, it's difficult to benchmark the price against industry standards or determine the precise volume of munitions being procured for military readiness.

How does the per-unit cost of this ammunition compare to market rates or similar government contracts?

A per-unit cost benchmark cannot be calculated with the available data, as the total quantity of ammunition is unknown. To assess value for money, one would need to compare the contract's total value ($10.3 million) against the number of units procured. Additionally, comparing this contract's pricing structure to other government contracts for similar ammunition calibers, awarded around the same period, would be necessary. Factors like specific technical requirements, quality standards, and delivery schedules can significantly influence per-unit costs, making direct comparisons complex.

What is North American Aerodynamics, Inc.'s track record with Department of Defense contracts, particularly for ammunition?

The provided data indicates North American Aerodynamics, Inc. was awarded this specific contract. Further investigation into their contract history with the DoD, including past performance evaluations, previous awards for similar items, and any history of contract modifications or disputes, would be necessary to fully assess their track record. Understanding their experience in manufacturing ammunition within the specified caliber range is key to evaluating their capability and reliability for this requirement.

What were the key performance indicators (KPIs) and quality assurance measures stipulated in the contract?

The provided summary data does not include details on the specific Key Performance Indicators (KPIs) or quality assurance measures. Typically, such contracts would outline requirements for production timelines, defect rates, material quality, and testing protocols. The effectiveness of the contract in delivering reliable ammunition hinges on these unstated performance standards and the rigor of the government's oversight and acceptance processes.

How has historical spending on 75mm-125mm ammunition by the DoD trended over the past decade?

Analyzing historical spending trends for this specific ammunition range would require access to broader federal procurement databases. Such an analysis would reveal whether this $10.3 million contract represents an increase, decrease, or stable level of investment compared to previous years. Understanding these trends can provide context on the DoD's evolving needs, potential budget allocations, and the overall market dynamics for ammunition procurement.

What is the strategic importance of this contract within the broader DoD ammunition supply chain?

The strategic importance relates to ensuring the availability of specific caliber ammunition (75mm-125mm) for military operations and training. Contracts like this contribute to maintaining domestic manufacturing capabilities for critical defense materiel. The duration and value suggest a sustained need, highlighting its role in the DoD's long-term supply chain strategy for munitions, potentially supporting specific weapon systems or readiness objectives.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 110 CARVER DR, ROXBORO, NC, 13

Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline