Army awards $21.8M contract for M107 System to Barrett Firearms Manufacturing, Inc
Contract Overview
Contract Amount: $21,791,196 ($21.8M)
Contractor: Barrett Firearms Manufacturing, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-09-08
End Date: 2009-02-27
Contract Duration: 903 days
Daily Burn Rate: $24.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M107 SYSTEM (ARMY)
Place of Performance
Location: MURFREESBORO, RUTHERFORD County, TENNESSEE, 37133
Plain-Language Summary
Department of Defense obligated $21.8 million to BARRETT FIREARMS MANUFACTURING, INC. for work described as: M107 SYSTEM (ARMY) Key points: 1. The contract value is $21.8 million. 2. Barrett Firearms Manufacturing, Inc. is the sole contractor. 3. The contract was not competed, raising potential value concerns. 4. The sector is Defense, specifically small arms manufacturing.
Value Assessment
Rating: questionable
The award amount of $21.8 million for the M107 System is difficult to benchmark without specific unit details. However, the lack of competition suggests potential for overpricing compared to a competitive environment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded sole-source, meaning it was not competed. This limits price discovery and may result in higher costs for the government compared to a competitive procurement.
Taxpayer Impact: The lack of competition could lead to taxpayers paying more than necessary for these small arms systems.
Public Impact
Procurement of small arms directly impacts soldier readiness and effectiveness. Sole-source contracts can limit innovation and access to a broader range of technologies. The duration of the contract (903 days) suggests a significant need for these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Potential for inflated pricing
Positive Signals
- Specific system for Army needs
- Firm fixed price contract
Sector Analysis
This contract falls within the Defense sector, specifically focusing on small arms and ordnance manufacturing. Spending in this area is critical for military operations, but competitive bidding is generally expected to ensure value.
Small Business Impact
The contractor, Barrett Firearms Manufacturing, Inc., is not identified as a small business in this data. Therefore, this contract does not appear to directly benefit small businesses.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair and reasonable pricing. Further review of the justification for sole-source procurement is recommended.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition
- Potential for overpricing
- Limited market research implied
- No small business participation noted
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, tn, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $21.8 million to BARRETT FIREARMS MANUFACTURING, INC.. M107 SYSTEM (ARMY)
Who is the contractor on this award?
The obligated recipient is BARRETT FIREARMS MANUFACTURING, 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 $21.8 million.
What is the period of performance?
Start: 2006-09-08. End: 2009-02-27.
What was the specific justification for awarding this contract sole-source instead of competing it?
The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent need, or lack of adequate competition. Without access to the specific justification document, it's impossible to determine the precise reasons. However, such justifications are crucial for ensuring that sole-source awards are made only when truly necessary and in the best interest of the government.
How does the unit cost of the M107 System compare to similar sniper or anti-materiel rifles procured competitively?
A direct comparison of the unit cost is challenging without detailed specifications and quantities for the M107 System and comparable competitively procured rifles. However, the absence of competition inherently suggests that the government may not have achieved the lowest possible price. A thorough cost analysis against market research for similar systems would be needed to definitively assess value.
What is the long-term strategic impact of relying on a single source for critical small arms like the M107 System?
Relying on a single source can create long-term strategic risks, including potential supply chain vulnerabilities, lack of technological advancement due to limited market pressure, and dependence on one manufacturer's pricing decisions. While it ensures a specific capability, it can hinder broader military modernization efforts and reduce negotiating leverage over time.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
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
Address: 5926 MILLER LANE, CHRISTIANA, TN, 04
Business Categories: Category Business, Small Business
Financial Breakdown
Contract Ceiling: $33,252,516
Exercised Options: $21,791,196
Current Obligation: $21,791,196
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-08
Current End Date: 2009-02-27
Potential End Date: 2009-02-27 00:00:00
Last Modified: 2010-11-12
More Contracts from Barrett Firearms Manufacturing, Inc.
- 200312!001084!2100!AE30 !tacom - Picatinny !daae3003c1126 !A!N! !N! !20030609!20060930!137250973!137250973!137250973!n!barrett Firearms MFG Inc !5926 Miller Lane !christiana !tn!37037!14900!009!47!christie Hill !blount !tennessee !+000003419832!n!n!000000000000!1005!guns, Through 30 MM !A5 !weapons !1000!NOT Discernable or Classified !332992!E! !3! ! ! ! ! !99990909!B! ! !A! !d!u!j!1!001!n!1a!z!n!z! ! !y!b!n!y! ! !A! !a!a!000!a!b!n! ! ! ! ! ! !0001! ! — $21.5M (Department of Defense)
- Delivery Order — $13.5M (Department of Defense)
View all Barrett Firearms Manufacturing, Inc. federal contracts →
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)