DoD awards $7.2M for 12 Gauge Breaching Ammunition, with 2 contracts awarded
Contract Overview
Contract Amount: $7,228,849 ($7.2M)
Contractor: Defense Technology, LLC
Awarding Agency: Department of Defense
Start Date: 2019-09-18
End Date: 2026-11-30
Contract Duration: 2,630 days
Daily Burn Rate: $2.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: CARTRIDGE, 12 GAUGE, BREACHING M1030
Place of Performance
Location: CASPER, NATRONA County, WYOMING, 82601
State: Wyoming Government Spending
Plain-Language Summary
Department of Defense obligated $7.2 million to DEFENSE TECHNOLOGY, LLC for work described as: CARTRIDGE, 12 GAUGE, BREACHING M1030 Key points: 1. Spending on specialized ammunition for breaching operations. 2. Competition was full and open, suggesting market availability. 3. Risk is moderate due to the specialized nature of the product. 4. Sector is Defense, specifically small arms ammunition manufacturing.
Value Assessment
Rating: good
The total award amount is $7.2M across two contracts. Pricing details per unit are not explicitly provided, but the firm fixed price contract type suggests cost certainty.
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 could bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: Taxpayer funds are being used for essential defense materiel, with competition aiming for cost-effectiveness.
Public Impact
Ensures readiness for military breaching operations. Supports domestic manufacturing of specialized ammunition. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract actions.
- Dependence on a single manufacturer for specialized components.
Positive Signals
- Full and open competition utilized.
- Firm fixed price contract type provides cost predictability.
- Long-term contract duration allows for sustained supply.
Sector Analysis
This spending falls within the Defense sector, specifically small arms ammunition manufacturing. Benchmarks for this niche market are difficult to ascertain without specific product comparisons, but overall defense spending on ammunition is substantial.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract award, as the 'sb' field is false. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for defense contracts would apply, focusing on delivery, quality, and adherence to contract terms.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration may outpace technological advancements.
- Potential for price escalation in future contract modifications.
- Limited visibility into subcontractor performance.
- Dependence on specific manufacturing capabilities.
Tags
small-arms-ammunition-manufacturing, department-of-defense, wy, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.2 million to DEFENSE TECHNOLOGY, LLC. CARTRIDGE, 12 GAUGE, BREACHING M1030
Who is the contractor on this award?
The obligated recipient is DEFENSE TECHNOLOGY, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $7.2 million.
What is the period of performance?
Start: 2019-09-18. End: 2026-11-30.
What is the average per-unit cost of this breaching ammunition compared to similar products on the market?
Without specific per-unit cost data or detailed specifications for comparable products, a precise benchmark is not possible. However, the firm fixed price contract and full and open competition suggest an effort to achieve a competitive price. Further investigation into historical pricing for similar ammunition types or market research reports would be necessary for a definitive comparison.
What are the primary risks associated with the long-term supply of this specialized ammunition?
Key risks include potential supply chain disruptions for specialized components, reliance on a limited number of manufacturers capable of producing this specific breaching round, and the possibility of obsolescence if newer technologies emerge. Geopolitical factors affecting raw material availability and manufacturing capacity also pose risks to sustained supply.
How effectively does this contract support the Department of the Army's operational requirements for breaching missions?
The contract's long duration (ending in 2026) and firm fixed price structure suggest a commitment to ensuring a consistent and predictable supply of this critical munition. Full and open competition implies that the chosen product meets necessary specifications and is competitively sourced, supporting operational readiness for breaching scenarios.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W15QKN19R0022
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BAE Systems PLC
Address: 1855 S LOOP AVE, CASPER, WY, 82601
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $16,305,429
Exercised Options: $7,228,849
Current Obligation: $7,228,849
Actual Outlays: $226,368
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-18
Current End Date: 2026-11-30
Potential End Date: 2026-11-30 12:11:00
Last Modified: 2026-01-07
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