DoD's $162M M232A1 Production Contract Awarded to Armtec Defense Products in FY08
Contract Overview
Contract Amount: $162,421,460 ($162.4M)
Contractor: Armtec Defense Products CO.
Awarding Agency: Department of Defense
Start Date: 2008-09-26
End Date: 2015-07-31
Contract Duration: 2,499 days
Daily Burn Rate: $65.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BASE YEAR 1 (FY08) M232A1 PRODUCTION
Place of Performance
Location: COACHELLA, RIVERSIDE County, CALIFORNIA, 92236
Plain-Language Summary
Department of Defense obligated $162.4 million to ARMTEC DEFENSE PRODUCTS CO. for work described as: BASE YEAR 1 (FY08) M232A1 PRODUCTION Key points: 1. The contract, valued at over $162 million, was awarded to Armtec Defense Products. 2. This award represents a significant investment in ordnance manufacturing. 3. The contract was not competed, raising questions about price discovery. 4. The sector is Other Ordnance and Accessories Manufacturing, a niche but critical area for defense.
Value Assessment
Rating: questionable
The contract's value is substantial, but without competition, it's difficult to assess if the pricing is optimal. Benchmarking against similar ordnance contracts would be necessary for a thorough evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these ordnance supplies.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long contract duration (2008-2015) suggests a sustained need for this ordnance. The specific nature of ordnance manufacturing can sometimes limit the pool of qualified contractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration without re-competition
Positive Signals
- Award to a specific defense manufacturer
- Definitive contract type suggests clear terms
Sector Analysis
This contract falls within the Other Ordnance and Accessories Manufacturing sector. Spending in this area is driven by defense procurement needs and can be subject to limited competition due to specialized requirements.
Small Business Impact
The contract was awarded to Armtec Defense Products, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to understand the justification for the sole-source award and ensure fair pricing was achieved through negotiation.
Related Government Programs
- Other Ordnance and Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency on justification
- Long-term commitment without re-evaluation
Tags
other-ordnance-and-accessories-manufactu, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $162.4 million to ARMTEC DEFENSE PRODUCTS CO.. BASE YEAR 1 (FY08) M232A1 PRODUCTION
Who is the contractor on this award?
The obligated recipient is ARMTEC DEFENSE PRODUCTS CO..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $162.4 million.
What is the period of performance?
Start: 2008-09-26. End: 2015-07-31.
What was the justification for not competing this large ordnance contract?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services, or in cases of urgent and compelling need. Further investigation into the contract file would be required to ascertain the specific rationale.
What is the potential cost impact of this sole-source award on taxpayers?
Sole-source contracts often carry a higher cost risk for taxpayers compared to competitively awarded contracts. Without competitive pressure, the contractor may not have the same incentive to offer the lowest possible price. The absence of a competitive benchmark makes it difficult to quantify the exact overpayment, but it is a common concern with non-competed awards.
How effective has Armtec Defense Products been in fulfilling this contract's requirements?
The provided data does not include performance metrics or quality ratings for Armtec Defense Products on this contract. Effectiveness would typically be assessed through contract close-out reports, performance reviews, and any documented issues related to delivery, quality, or adherence to specifications. This information would likely reside within the contracting agency's records.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Other Ordnance and Accessories Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
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: Esterline Technologies Corporation (UEI: 043190826)
Address: 85-901 AVE 53, COACHELLA, CA, 92236
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $162,421,460
Exercised Options: $162,421,460
Current Obligation: $162,421,460
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-09-26
Current End Date: 2015-07-31
Potential End Date: 2015-07-31 12:07:00
Last Modified: 2016-10-06
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