DoD awards $134M for 30-75mm guns to Heckler & Koch Inc. under full and open competition
Contract Overview
Contract Amount: $29,869,773 ($29.9M)
Contractor: Heckler & Koch, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-09-21
End Date: 2011-04-30
Contract Duration: 2,047 days
Daily Burn Rate: $14.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200512!501871!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1250 !A!N! !N! !P00003!20050921!20050630!070103346!134466999!134466999!N!HECKLER & KOCH INC !21480 PACIFIC BLVD !STERLING !VA!20166!75376!107!51!STERLING !LOUDOUN !VIRGINIA !+000000331774!N!N!000000000000!1010!GUNS, OVER 30 MM UP TO 75 MM !A5 !WEAPONS !000 !* !332995!E! !3! ! !D! ! !20200930!B! ! !A! !A!U!J!2!003!B! !Z!N!A! ! !Y!C!N! ! ! !Z!Z!A!A!000!A!B!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: ASHBURN, LOUDOUN County, VIRGINIA, 20147
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $29.9 million to HECKLER & KOCH, INC. for work described as: 200512!501871!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1250 !A!N! !N! !P00003!20050921!20050630!070103346!134466999!134466999!N!HECKLER & KOCH INC !21480 PACIFIC BLVD !STERLING !VA!20166!75376!107!51!STERLING !LOUD… Key points: 1. Contract awarded for specific caliber weapon systems. 2. Heckler & Koch Inc. is the sole awardee. 3. Full and open competition was utilized. 4. Contract duration spans over 6 years.
Value Assessment
Rating: good
The contract value of $134,466,999 over 2047 days suggests a reasonable price point for specialized weapon systems. Benchmarking against similar defense contracts for ordnance would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price, maximizing taxpayer value for these critical defense assets.
Public Impact
Ensures readiness of military forces with specialized weapon systems. Supports a key defense contractor, potentially impacting jobs. Procurement of specific caliber weapons for military applications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price escalation.
- Reliance on a single supplier for critical components.
Positive Signals
- Full and open competition ensures market access.
- Clear product definition for weapon systems.
Sector Analysis
This contract falls within the Defense sector, specifically related to ordnance manufacturing. Spending in this area is driven by military modernization and operational needs, with benchmarks varying significantly based on weapon system complexity and quantity.
Small Business Impact
The data indicates this contract was awarded to a large business (Heckler & Koch Inc.). There is no specific information provided regarding small business participation or subcontracting goals within this award.
Oversight & Accountability
The contract was awarded by the Department of Defense, with oversight likely managed by the Defense Contract Management Agency. The use of full and open competition suggests a structured procurement process aimed at accountability.
Related Government Programs
- Other Ordnance and Accessories Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for price increases over the contract's long duration.
- Dependence on a single manufacturer for critical ordnance.
- Limited visibility into specific performance metrics post-award.
- No explicit small business subcontracting noted.
Tags
other-ordnance-and-accessories-manufactu, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.9 million to HECKLER & KOCH, INC.. 200512!501871!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1250 !A!N! !N! !P00003!20050921!20050630!070103346!134466999!134466999!N!HECKLER & KOCH INC !21480 PACIFIC BLVD !STERLING !VA!20166!75376!107!51!STERLING !LOUDOUN !VIRGINIA !+000000331774!N!N!000000000000!1010!GUNS, OVER 30 MM UP TO 75 MM !A5 !WEAPONS !000 !* !332995!E! !3! ! !D! ! !202
Who is the contractor on this award?
The obligated recipient is HECKLER & KOCH, 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 $29.9 million.
What is the period of performance?
Start: 2005-09-21. End: 2011-04-30.
What is the specific operational requirement driving the need for 30-75mm caliber guns?
The specific operational requirement for 30-75mm caliber guns would typically relate to providing infantry units with enhanced firepower against light armored vehicles, fortifications, or for suppressive fire roles. These calibers offer a balance between portability and destructive capability, often exceeding the effectiveness of smaller caliber automatic weapons while remaining manageable for deployment.
How does the unit cost compare to similar international defense contracts for comparable weapon systems?
Comparing the unit cost requires detailed analysis of the specific weapon system's features, materials, and production volume against international benchmarks. Factors like technological sophistication, logistical support included, and the specific competitive landscape in other nations can significantly influence pricing, making direct comparisons challenging without granular data.
What are the long-term implications of this contract on the development of future weapon systems?
This contract could influence future weapon system development by validating Heckler & Koch's technology and production capabilities. It may also signal a continued demand for this caliber range, potentially encouraging further R&D in related areas. Conversely, a long-term reliance on existing platforms might slow the adoption of entirely new combat system concepts.
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: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Heckler & Koch Defense Inc. (UEI: 331266275)
Address: 21480 PACIFIC BLVD, STERLING, VA, 20166
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2005-09-21
Current End Date: 2011-04-30
Potential End Date: 2011-04-30 00:00:00
Last Modified: 2018-11-02
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