Army awards $370M contract for optical instruments, test equipment, and accessories to FN Manufacturing LLC

Contract Overview

Contract Amount: $59,190,007 ($59.2M)

Contractor: FN America LLC

Awarding Agency: Department of Defense

Start Date: 2005-09-23

End Date: 2008-07-31

Contract Duration: 1,042 days

Daily Burn Rate: $56.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!501996!2100!W15QKN!TACOM - PICATINNY !W15QKN05C0616 !A!N! !N! ! !20050923!20070630!098401086!098401086!370005936!N!F N MANUFACTURING LLC !797 OLD CLEMSON RD !COLUMBIA !SC!29229!16000!079!45!COLUMBIA !RICHLAND !S CAROLINA!+000020935368!N!N!000020935368!6650!OPTICAL INSTRUMENTS, TEST EQUIP, COMPS & ACCYS !A5 !WEAPONS !000 !* !332994!E! !3! ! ! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29229

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $59.2 million to FN AMERICA LLC for work described as: 200512!501996!2100!W15QKN!TACOM - PICATINNY !W15QKN05C0616 !A!N! !N! ! !20050923!20070630!098401086!098401086!370005936!N!F N MANUFACTURING LLC !797 OLD CLEMSON RD !COLUMBIA !SC!29229!16000!079!45!COLUMBIA !RICH… Key points: 1. Contract awarded for optical instruments and related equipment, indicating a need for specialized surveillance or targeting capabilities. 2. The contract's duration of over 2.5 years suggests a sustained requirement for these specialized items. 3. Awarded to a single manufacturer, raising questions about potential cost efficiencies and market alternatives. 4. The significant dollar value points to a substantial investment in defense-related optical technology. 5. Geographic concentration of the awardee in South Carolina may have local economic implications.

Value Assessment

Rating: fair

The contract value of $370,005,936 for optical instruments and test equipment appears substantial. Without specific details on the exact items procured, it is difficult to benchmark against similar contracts. However, the absence of competition suggests that pricing may not have been subjected to market pressures, potentially leading to a less favorable price for the government compared to a competitively bid contract. Further analysis would require detailed itemization and comparison with industry standards for similar equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, FN Manufacturing LLC, was solicited. This approach is typically used when a unique product or service is required, or when only one responsible source is available. The lack of competition means that the government did not benefit from multiple bids, which could have driven down prices and spurred innovation. The justification for a sole-source award would need to be thoroughly reviewed to ensure it was appropriate.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as there is no competitive pressure to ensure the best possible price. This limits the government's ability to leverage market forces for cost savings.

Public Impact

The primary beneficiaries of this contract are likely military personnel requiring advanced optical instruments for operational effectiveness. The contract delivers specialized optical instruments, test equipment, and accessories essential for defense operations. The geographic impact is concentrated in Columbia, South Carolina, where FN Manufacturing LLC is located, potentially supporting local employment and the regional economy. Workforce implications may include job creation or retention at FN Manufacturing LLC and its supply chain within South Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential for cost savings.
Lack of competition may reduce incentive for contractor to offer innovative solutions.
Contract duration and value warrant close monitoring for performance and cost overruns.

Positive Signals

Award to an established manufacturer suggests a degree of confidence in their capabilities.
Focus on specialized equipment indicates investment in critical defense technology.
Contracting with a domestic manufacturer supports U.S. industrial base.

Sector Analysis

This contract falls within the broader defense manufacturing sector, specifically focusing on optical instruments and test equipment. The market for such specialized defense components is often characterized by high barriers to entry due to technological complexity and stringent quality requirements. While specific market size data for this niche is not provided, the overall defense electronics and optics market is substantial. This contract represents a significant procurement within this specialized segment, likely supporting advanced targeting, surveillance, or reconnaissance systems for the U.S. Army.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to involve significant subcontracting opportunities for small businesses based on the available data. The award to a single, likely larger, manufacturer suggests that the primary focus was on specialized capabilities rather than broad small business participation. Further investigation into subcontracting plans would be necessary to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Defense Contract Management Agency (DCMA). Accountability measures would be tied to the contract's performance requirements and delivery schedules. Transparency is generally facilitated through contract databases, though detailed justifications for sole-source awards and specific performance metrics may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Combat Systems
Defense Optics and Electro-Optical Systems
Military Test and Measurement Equipment
Ordnance and Small Arms Manufacturing

Risk Flags

Sole-source award
Lack of competition
Potential for cost overruns
Dependency on a single supplier

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $59.2 million to FN AMERICA LLC. 200512!501996!2100!W15QKN!TACOM - PICATINNY !W15QKN05C0616 !A!N! !N! ! !20050923!20070630!098401086!098401086!370005936!N!F N MANUFACTURING LLC !797 OLD CLEMSON RD !COLUMBIA !SC!29229!16000!079!45!COLUMBIA !RICHLAND !S CAROLINA!+000020935368!N!N!000020935368!6650!OPTICAL INSTRUMENTS, TEST EQUIP, COMPS & ACCYS !A5 !WEAPONS !000 !* !332994!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is FN AMERICA LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $59.2 million.

What is the period of performance?

Start: 2005-09-23. End: 2008-07-31.

What specific types of optical instruments and test equipment are being procured under this contract?

The contract data indicates the procurement of 'OPTICAL INSTRUMENTS, TEST EQUIP, COMPS & ACCYS' under the Product Service Code (PSC) 6650. While the specific item details are not fully elaborated in the provided data, this PSC typically covers a range of optical devices such as telescopes, binoculars, periscopes, optical sighting equipment, and associated test and calibration instruments. Given the 'WEAPONS' and 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' (NAICS 332994) context, these optical instruments are likely intended for integration with or support of weapon systems, potentially including targeting systems, fire control systems, or advanced surveillance equipment used by the Army.

What is the historical spending pattern for similar optical instruments and test equipment by the Department of the Army?

Analyzing historical spending for similar optical instruments and test equipment by the Department of the Army requires access to comprehensive procurement databases. However, general trends indicate consistent and significant investment in electro-optical and infrared (EO/IR) systems, targeting pods, and advanced optics for various platforms, including ground vehicles, aircraft, and individual soldier systems. The Army's budget typically allocates substantial funds towards modernization efforts that include such specialized equipment. Without specific contract numbers or detailed historical data for this particular PSC and related items, a precise historical spending pattern cannot be determined from the provided data alone. However, the nature of defense procurement suggests a continuous need for such technologies, often awarded through a mix of competitive and sole-source contracts depending on technological maturity and availability.

What is the track record of FN Manufacturing LLC in delivering similar defense contracts?

FN Manufacturing LLC, often associated with FN America, has a well-established track record in manufacturing firearms and related defense equipment for the U.S. military and other government agencies. They are known for producing a range of small arms, including rifles and machine guns, and have also been involved in supplying components and systems. While their primary reputation is in firearms, their capabilities can extend to integrated systems that include optical or sighting components. The award of this substantial contract suggests that the Army has confidence in FN Manufacturing LLC's ability to produce or integrate the specified optical instruments and test equipment, likely based on past performance, quality standards, and production capacity relevant to defense requirements.

How does the pricing of this contract compare to market rates for similar optical instruments?

Benchmarking the pricing of this contract against market rates for similar optical instruments is challenging without detailed specifications of the procured items and a clear understanding of the quantities involved. As this was a sole-source award, direct price comparisons with competitively bid contracts are not feasible. Generally, sole-source procurements may not achieve the same level of price efficiency as competitive ones. To assess value for money, one would need to compare the unit costs (if determinable) against industry benchmarks for comparable military-grade optical systems, considering factors like technological sophistication, durability, and specific performance requirements. The absence of competition limits the ability to definitively state if the pricing is optimal.

What are the potential risks associated with this sole-source contract for optical instruments?

The primary risk associated with this sole-source contract is the potential for inflated pricing due to the lack of competitive bidding. Without competing offers, FN Manufacturing LLC may have had less incentive to offer the most cost-effective solution. Another risk is the potential for vendor lock-in, where the government becomes dependent on a single supplier for critical components, limiting future flexibility and potentially increasing long-term costs. Furthermore, if FN Manufacturing LLC faces production issues or delays, there are no immediate alternative sources to mitigate the impact on the Army's operational readiness. Ensuring robust contract oversight and performance management becomes crucial to mitigate these risks.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Societ Herstalienne Pour LA Finance L'industrielle ET LE C (UEI: 370005936)

Address: 797 OLD CLEMSON RD, COLUMBIA, SC, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline