DoD Awards $23.3M for Ammunition Manufacturing to American Ordnance LLC
Contract Overview
Contract Amount: $23,277,027 ($23.3M)
Contractor: American Ordnance LLC, Milan O
Awarding Agency: Department of Defense
Start Date: 2005-02-07
End Date: 2009-04-30
Contract Duration: 1,543 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200508!500531!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1177 !A!N! !N! ! !20050207!20100209!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48660!053!47!MILAN !GIBSON !TENNESSEE !+000002134563!N!N!000002210228!1310!AMMUNITION, OVER 30 MM UP TO 75 MM !A6 !AMMUNITION !000 !* !332993!A!A!3! ! ! ! ! !20200930!B! ! !A! !A!U!J!1!004!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: MILAN, GIBSON County, TENNESSEE, 38358
Plain-Language Summary
Department of Defense obligated $23.3 million to AMERICAN ORDNANCE LLC, MILAN O for work described as: 200508!500531!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1177 !A!N! !N! ! !20050207!20100209!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48660!053!47!MILAN !GIBS… Key points: 1. Contract awarded for ammunition manufacturing, specifically for rounds over 30mm up to 75mm. 2. American Ordnance LLC, based in Milan, TN, secured the contract. 3. The contract was awarded under full and open competition. 4. This spending falls within the broader Defense sector, specifically Army procurement.
Value Assessment
Rating: good
The contract value of $23.3 million over approximately 4 years appears reasonable for specialized ammunition manufacturing. Benchmarking against similar, though not identical, ammunition contracts suggests this pricing is within expected ranges.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving a fair price for the procured ammunition.
Public Impact
Ensures supply of critical ammunition for military operations. Supports a US-based manufacturer, contributing to domestic industrial capacity. Potential for follow-on contracts based on performance and future needs. Impacts readiness and logistical capabilities of the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract modifications.
- Dependence on a single supplier for this specific ammunition type.
Positive Signals
- Awarded through full and open competition.
- Supports domestic manufacturing capabilities.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls under the Defense sector, specifically within the Army's procurement of ammunition. Spending on ammunition is a consistent requirement for military readiness, with benchmarks varying based on type, quantity, and technological sophistication.
Small Business Impact
The prime contractor, American Ordnance LLC, is not identified as a small business in this data. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating oversight by a major defense agency. The firm fixed price structure provides some level of cost control, but ongoing performance monitoring is crucial.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for sole-source dependency in the future.
- Price volatility of raw materials for ammunition.
- Geopolitical factors impacting supply chains.
- Technological obsolescence of ammunition types.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, tn, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to AMERICAN ORDNANCE LLC, MILAN O. 200508!500531!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1177 !A!N! !N! ! !20050207!20100209!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48660!053!47!MILAN !GIBSON !TENNESSEE !+000002134563!N!N!000002210228!1310!AMMUNITION, OVER 30 MM UP TO 75 MM !A6 !AMMUNITION !000 !* !332993!A!A!3! ! ! ! ! !202
Who is the contractor on this award?
The obligated recipient is AMERICAN ORDNANCE LLC, MILAN O.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2005-02-07. End: 2009-04-30.
What is the specific type and quantity of ammunition being procured under this contract?
The contract specifies ammunition for rounds over 30mm up to 75mm, with the National Stock Number (NSN) 332993. The exact quantity is not detailed in the provided data, but the contract value suggests a significant volume over its duration.
Are there any identified risks associated with the sole-source nature of the manufacturer for this specific ammunition type?
While the award itself was competitive, the data implies American Ordnance LLC may be a primary or sole source for this specific ammunition category. Risks could include supply chain disruptions, price escalation if competition diminishes in the future, or limited options if performance issues arise.
How does the performance of American Ordnance LLC on this contract compare to industry standards for ammunition manufacturing?
The provided data does not include performance metrics for this contract. Evaluating performance would require access to contract delivery records, quality control reports, and any past performance evaluations to compare against industry standards for reliability and timeliness.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2280 HWY 104, SUITE 2, MILAN, TN, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-02-07
Current End Date: 2009-04-30
Potential End Date: 2009-04-30 00:00:00
Last Modified: 2012-07-11
More Contracts from American Ordnance LLC, Milan O
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)