DoD awards $35.7M contract for small arms, ordnance to UKRSPECEXPORT, raising competition concerns
Contract Overview
Contract Amount: $35,677,107 ($35.7M)
Contractor: Ukrspecexport State Company for Export and Import of Military and Special Products and Services
Awarding Agency: Department of Defense
Start Date: 2016-09-28
End Date: 2019-02-01
Contract Duration: 856 days
Daily Burn Rate: $41.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF NSW
Plain-Language Summary
Department of Defense obligated $35.7 million to UKRSPECEXPORT STATE COMPANY FOR EXPORT AND IMPORT OF MILITARY AND SPECIAL PRODUCTS AND SERVICES for work described as: PURCHASE OF NSW Key points: 1. Significant contract value awarded to a foreign entity. 2. Lack of competition raises questions about price discovery. 3. Potential risks associated with sole-source foreign procurement. 4. Spending falls within the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector.
Value Assessment
Rating: questionable
The contract value of $35.7M for small arms and ordnance is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition suggests taxpayers may have paid a premium for these goods.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. Reliance on a single foreign supplier could pose supply chain risks. Limited transparency in the procurement process hinders public scrutiny.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Foreign vendor
- Lack of transparency
Positive Signals
- Definitive contract type
- Firm fixed price
Sector Analysis
This contract falls under the 'Small Arms, Ordnance, and Ordnance Accessories Manufacturing' sector. Spending benchmarks for this specific niche are difficult to ascertain without competitive data.
Small Business Impact
The data indicates this contract was not awarded to a small business, and the vendor is a foreign state-owned company.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the government received the best possible value and to understand the justification for not competing the contract.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competition
- Foreign vendor
- Potential for overpayment
- Supply chain risk
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $35.7 million to UKRSPECEXPORT STATE COMPANY FOR EXPORT AND IMPORT OF MILITARY AND SPECIAL PRODUCTS AND SERVICES. PURCHASE OF NSW
Who is the contractor on this award?
The obligated recipient is UKRSPECEXPORT STATE COMPANY FOR EXPORT AND IMPORT OF MILITARY AND SPECIAL PRODUCTS AND SERVICES.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $35.7 million.
What is the period of performance?
Start: 2016-09-28. End: 2019-02-01.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves specific circumstances such as the existence of only one responsible source, urgent and compelling needs, or national security requirements. Without further documentation, the specific rationale for this $35.7M contract remains unclear, making it difficult to assess its necessity and potential impact on value.
What are the potential risks associated with procuring ordnance from a single foreign supplier?
Procuring ordnance from a single foreign supplier, especially on a sole-source basis, introduces several risks. These include potential supply chain disruptions due to geopolitical factors, quality control issues if oversight is limited, and long-term dependency that could impact future procurement flexibility and pricing power.
How does the firm fixed price contract type mitigate or exacerbate the risks of a sole-source award?
A firm fixed price contract aims to establish a set price regardless of the contractor's actual costs. While this can provide cost certainty for the buyer, in a sole-source scenario, it doesn't guarantee a competitive price. The risk is that the fixed price might be set at a higher level than it would have been under competitive conditions.
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
Parent Company: THE Cabinet of Ministers of Ukraine
Address: 36, KYIV
Business Categories: Category Business, Foreign Owned, International Organization, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $35,677,107
Exercised Options: $35,677,107
Current Obligation: $35,677,107
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-28
Current End Date: 2019-02-01
Potential End Date: 2019-02-01 12:02:00
Last Modified: 2022-06-06
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