Army awards $13M contract for large caliber gun components, with a 5-year performance period

Contract Overview

Contract Amount: $13,042,332 ($13.0M)

Contractor: Triumph Group Inc

Awarding Agency: Department of Defense

Start Date: 2005-03-17

End Date: 2010-08-22

Contract Duration: 1,984 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200510!500608!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1248 !A!N! !N! ! !20050317!20090316!090013256!809877491!807636451!N!TRIUMPH GROUP INC !500 COTTAGE GROVE ROAD !BLOOMFIELD !CT!06002!05910!003!09!BLOOMFIELD !HARTFORD !CONN !+000001739558!N!N!000000000000!1025!GUNS, OVER 150 MM THROUGH 200 MM !A5 !WEAPONS !000 !* !332995!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!J!2!005!A! !Z!N!A! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: STAMFORD, FAIRFIELD County, CONNECTICUT, 06904

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to TRIUMPH GROUP INC for work described as: 200510!500608!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1248 !A!N! !N! ! !20050317!20090316!090013256!809877491!807636451!N!TRIUMPH GROUP INC !500 COTTAGE GROVE ROAD !BLOOMFIELD !CT!06002!05910!003!09!BLOOMFIELD !HART… Key points: 1. Contract awarded for critical gun components, indicating a need for specialized manufacturing capabilities. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contractor, Triumph Group Inc., has a history of performing on defense contracts. 4. The contract duration of approximately 5 years suggests a long-term requirement for these components. 5. The specific item, 'Guns, Over 150 mm Through 200 mm', points to a niche but important defense manufacturing segment.

Value Assessment

Rating: good

The contract value of approximately $13 million over five years appears reasonable for specialized defense components. Benchmarking against similar contracts for large caliber gun parts is challenging due to the niche nature of the product. However, the firm fixed-price structure suggests the contractor assumed significant cost risk, which can be favorable for the government if managed effectively. The award to a single contractor implies they offered the best value under the competitive process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 5 bids indicates a healthy level of competition for this specialized defense requirement. A competitive process like this generally leads to better price discovery and ensures the government receives offers from multiple qualified vendors.

Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award. It also ensures that taxpayer funds are being used efficiently by selecting the best value offer.

Public Impact

The primary beneficiaries are the U.S. Army's artillery and weapons systems requiring large caliber gun components. The contract delivers essential parts for the maintenance and production of specific military hardware. The geographic impact is primarily centered in Connecticut, where the contractor is located, potentially supporting local jobs. The contract supports specialized manufacturing jobs within the defense industrial base, particularly in ordnance manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions if the sole awardee faces production issues.
Reliance on a single contractor for critical components could pose a long-term risk if competition diminishes in the future.
The specific nature of the components may limit the pool of qualified manufacturers, impacting future competition.

Positive Signals

Award under full and open competition suggests a robust bidding process.
Firm fixed-price contract shifts cost risk to the contractor.
The contractor's established presence in defense manufacturing indicates experience and capability.

Sector Analysis

This contract falls within the defense industrial base, specifically the manufacturing of ordnance and accessories. The market for large caliber gun components is specialized, often dominated by a few key players due to stringent quality and technical requirements. Spending in this sector is driven by military modernization programs and readiness requirements. Comparable spending benchmarks are difficult to ascertain due to the niche nature, but defense procurement for weapon systems components represents a significant portion of the overall defense budget.

Small Business Impact

The contract data indicates that small business participation was not a primary focus, as the award was made to a large business (Triumph Group Inc.) and there is no explicit mention of small business set-asides or subcontracting goals. This suggests that the specialized nature of the components may have limited the opportunities for small businesses to compete directly or serve as prime contractors. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified components. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Weapons Systems Procurement
Ordnance Manufacturing
Defense Industrial Base Support
Tactical Vehicle Components
Artillery Systems

Risk Flags

Long-term reliance on a single supplier for critical components.
Potential for limited future competition due to specialized nature of the product.
Supply chain vulnerability if contractor faces unforeseen production challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to TRIUMPH GROUP INC. 200510!500608!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1248 !A!N! !N! ! !20050317!20090316!090013256!809877491!807636451!N!TRIUMPH GROUP INC !500 COTTAGE GROVE ROAD !BLOOMFIELD !CT!06002!05910!003!09!BLOOMFIELD !HARTFORD !CONN !+000001739558!N!N!000000000000!1025!GUNS, OVER 150 MM THROUGH 200 MM !A5 !WEAPONS !000 !* !332995!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is TRIUMPH GROUP INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2005-03-17. End: 2010-08-22.

What is the specific technical specification for 'Guns, Over 150 mm Through 200 mm' and how does it relate to current Army weapon systems?

The National Stock Number (NSN) 332995 refers to 'Guns, Over 150 mm Through 200 mm'. This classification typically encompasses components or complete gun systems within that specific caliber range. While the exact weapon system is not detailed in the provided data, components in this size range are often associated with large caliber artillery pieces, naval guns, or heavy vehicle-mounted cannons. The Army utilizes various artillery systems, such as self-propelled howitzers (e.g., M109 Paladin variants) and potentially components for larger caliber cannons on armored vehicles. The contract's focus on this specific size suggests a need for replacement parts, upgrades, or new production runs for existing or planned systems that utilize guns within the 150-200 mm diameter.

How does the firm fixed-price contract type impact the risk and potential cost savings for the government?

A Firm Fixed Price (FFP) contract is generally considered advantageous for the government when the scope of work is well-defined and the risks are understood. Under an FFP contract, the contractor agrees to a set price for the goods or services, regardless of their actual costs. This shifts the primary cost risk to the contractor. If the contractor's costs are lower than anticipated, they realize a higher profit. Conversely, if costs exceed the agreed-upon price, the contractor absorbs the loss. For the government, this structure provides cost certainty, making budgeting more predictable and eliminating the risk of cost overruns. It incentivizes the contractor to manage their costs efficiently to maximize profit, which can indirectly lead to better value for the government if the initial price was competitive.

What is Triumph Group Inc.'s track record with the Department of Defense, particularly in ordnance manufacturing?

Triumph Group Inc. is a well-established aerospace and defense manufacturer with a significant history of supplying components and systems to the U.S. military. While their portfolio is broad, encompassing aircraft structures, systems, and components, they also have capabilities relevant to defense manufacturing, including complex machining and fabrication. Their involvement in ordnance manufacturing, as indicated by this contract, aligns with their expertise in producing high-specification, critical components. Publicly available contract data often shows Triumph Group holding numerous contracts with various branches of the DoD, including the Army, Navy, and Air Force, for a range of products. Their track record generally reflects experience in meeting stringent military specifications and delivery schedules, though like any large contractor, specific performance can vary by contract.

What are the potential implications of a 5-year contract duration for the supply chain and future competition?

A 5-year contract duration for specialized components like large caliber gun parts suggests a stable, long-term demand from the Army. For the supply chain, this provides predictability, allowing the contractor (Triumph Group Inc.) to invest in necessary tooling, materials, and workforce planning. This stability can lead to more efficient production and potentially better pricing over the contract's life. However, a long-term commitment to a single supplier can also stifle future competition. During the contract period, other potential manufacturers may have fewer opportunities to develop the necessary expertise or production capacity for these specific components. Upon contract expiration, the government may face a limited field of bidders if competitors have not maintained or developed relevant capabilities, potentially leading to higher prices or longer lead times in subsequent procurements.

How does the 'Other Ordnance and Accessories Manufacturing' industry classification (NAICS 332995) compare to broader defense manufacturing sectors in terms of market size and competition?

The NAICS code 332995, 'Other Ordnance and Accessories Manufacturing,' represents a niche segment within the broader defense manufacturing industry. While the overall defense industrial base is vast, this specific sub-sector focuses on specialized items like ammunition, bombs, missiles, and gun components. The market size for this particular segment is smaller compared to major areas like aircraft manufacturing or shipbuilding, but it is critical for military readiness. Competition within this niche can be intense among a smaller group of highly specialized firms, or it can be limited if the technical barriers to entry are very high, as is often the case with ordnance. Companies operating in this space must adhere to rigorous quality control, safety standards, and often possess unique manufacturing technologies, which can create significant barriers for new entrants.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 500 COTTAGE GROVE ROAD, BLOOMFIELD, CT, 01

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline