DoD awards $133.9M for Ukraine ammo, with 155mm metal parts procured via sole-source contract
Contract Overview
Contract Amount: $133,867,136 ($133.9M)
Contractor: IMT Defense Corp
Awarding Agency: Department of Defense
Start Date: 2022-11-22
End Date: 2026-07-31
Contract Duration: 1,347 days
Daily Burn Rate: $99.4K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER IS FOR FIRST ARTICLE TEST AND PROCUREMENT OF 155MM M795 METAL PARTS ASSEMBLIES IN SUPPORT OF DOD STOCKPILE REPLENISHMENT FROM THE UKRAINE DRAWDOWN.
Plain-Language Summary
Department of Defense obligated $133.9 million to IMT DEFENSE CORP for work described as: THIS DELIVERY ORDER IS FOR FIRST ARTICLE TEST AND PROCUREMENT OF 155MM M795 METAL PARTS ASSEMBLIES IN SUPPORT OF DOD STOCKPILE REPLENISHMENT FROM THE UKRAINE DRAWDOWN. Key points: 1. Contract supports critical Ukraine drawdown needs through stockpile replenishment. 2. Sole-source award raises questions about price discovery and potential for overpayment. 3. High value suggests significant strategic importance and urgency. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. Long performance period indicates a substantial production and delivery timeline. 6. Procurement of metal parts for ammunition highlights a specific manufacturing need.
Value Assessment
Rating: questionable
The contract value of $133.9 million for 155mm metal parts assemblies is substantial. Without a competitive bidding process, it is difficult to benchmark the value for money. The firm fixed-price structure is appropriate for this type of procurement, but the lack of competition means the government cannot be assured it received the best possible price. Further analysis would require comparing this unit cost to similar procurements for 155mm ammunition components, especially those awarded competitively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed. This approach is typically used when only one source is capable of meeting the requirement, or in urgent situations. The lack of competition limits the government's ability to leverage market forces to achieve the lowest possible price and may indicate a lack of available suppliers or a rushed procurement process.
Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without multiple bids, the government cannot verify if the price offered is the most cost-effective available on the market.
Public Impact
Directly benefits Ukraine by providing essential ammunition components for defense. Supports the Department of Defense's strategic goal of replenishing critical munitions stockpiles. Impacts the defense industrial base, specifically manufacturers of ammunition components. Ensures continued availability of 155mm artillery shells, a key weapon system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price competition, potentially increasing costs for taxpayers.
- Urgency of the Ukraine situation may have led to expedited procurement without full market analysis.
- Long contract duration could expose the government to risks if market conditions change significantly.
Positive Signals
- Firm Fixed Price contract type provides cost certainty and shifts performance risk to the contractor.
- Procurement directly supports a critical national security objective and allied support.
- Delivery order structure allows for phased funding and management of a large requirement.
Sector Analysis
This contract falls within the defense industrial base, specifically the manufacturing of ammunition components. The market for such specialized metal parts is often concentrated among a few key suppliers due to stringent quality and security requirements. The value of this single contract is significant, representing a substantial portion of the annual spending in this niche sector. Comparable spending benchmarks would typically involve other large-scale ammunition production contracts, often awarded through competitive processes.
Small Business Impact
This contract does not appear to have a small business set-aside. Given the nature of ammunition component manufacturing, it is likely that the prime contractor is a large defense industrial firm. There is no explicit information regarding subcontracting plans for small businesses, which could be a missed opportunity to engage the small business defense supply chain.
Oversight & Accountability
The contract is subject to standard Department of Defense oversight mechanisms. As a delivery order under a larger contract vehicle, its execution will be monitored by the contracting officer and relevant program management offices. Transparency is generally maintained through contract databases, though specific details of the sole-source justification and pricing negotiations may be limited. Inspector General reviews could be initiated if performance issues or allegations of impropriety arise.
Related Government Programs
- Department of Defense Ammunition Procurement
- Ukraine Security Assistance Initiative
- Foreign Military Sales
- Defense Production Act Investments
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for cost overruns
- Long performance period
Tags
defense, department-of-defense, department-of-the-army, ammunition, delivery-order, firm-fixed-price, sole-source, ukraine, stockpile-replenishment, metal-parts-manufacturing, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $133.9 million to IMT DEFENSE CORP. THIS DELIVERY ORDER IS FOR FIRST ARTICLE TEST AND PROCUREMENT OF 155MM M795 METAL PARTS ASSEMBLIES IN SUPPORT OF DOD STOCKPILE REPLENISHMENT FROM THE UKRAINE DRAWDOWN.
Who is the contractor on this award?
The obligated recipient is IMT DEFENSE CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $133.9 million.
What is the period of performance?
Start: 2022-11-22. End: 2026-07-31.
What is the specific justification for awarding this contract on a sole-source basis?
The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. The justification for sole-sourcing typically falls under specific exceptions to full and open competition, such as urgency, unique capabilities, or lack of market availability. Given the context of supporting Ukraine's drawdown, urgency is a likely factor. However, without explicit documentation from the agency, the precise reason remains unconfirmed. This lack of competition prevents an independent assessment of whether alternative sources could have met the requirement, potentially at a lower cost or with faster delivery.
How does the unit cost of these 155mm metal parts compare to historical or market rates?
The total contract value is $133,867,136.38 for an unspecified quantity of 155mm M795 metal parts assemblies, though the contract notes 'procurement of 155mm M795 METAL PARTS ASSEMBLIES'. To determine a unit cost, the total value would need to be divided by the number of units procured. The data provided does not explicitly state the quantity. Without the quantity, a direct unit cost calculation is impossible. Furthermore, as this was a sole-source award, direct comparison to competitively bid contracts for similar components is the most viable benchmarking method, but such data is not available in the provided snippet.
What are the key performance indicators (KPIs) and delivery milestones for this contract?
The contract has a performance period from November 22, 2022, to July 31, 2026, indicating a duration of approximately 45 months. While the data specifies the start and end dates, it does not detail specific Key Performance Indicators (KPIs) or granular delivery milestones. Typically, such large-value contracts would include phased delivery schedules, quality acceptance criteria, and performance metrics related to production output and defect rates. These details are usually found within the full contract document or associated statements of work, which are not provided here.
What is the track record of IMT Defense Corp in fulfilling similar defense contracts?
Information regarding IMT Defense Corp's specific track record with similar defense contracts is not detailed in the provided data snippet. To assess their performance history, one would need to examine past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. A thorough review would involve searching federal procurement databases and agency performance records to understand their reliability, quality of work, and adherence to schedules on previous engagements, particularly those involving ammunition components.
What is the risk associated with the long performance period and potential supply chain disruptions?
The contract's duration, spanning from late 2022 to mid-2026, presents inherent risks. Extended timelines increase vulnerability to fluctuations in raw material costs, labor availability, and geopolitical events that could disrupt the supply chain. For a sole-source contract, the government has less leverage to adjust pricing or terms if market conditions shift unfavorably. Mitigation strategies might include contract clauses addressing escalation, requiring the contractor to maintain certain inventory levels, or establishing clear communication protocols for identifying and addressing potential disruptions early.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W15QKN23R0006
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2410 N 5TH ST, CHAMPAIGN, IL, 61822
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $133,867,136
Exercised Options: $133,867,136
Current Obligation: $133,867,136
Actual Outlays: $13,242,145
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15QKN23D0009
IDV Type: IDC
Timeline
Start Date: 2022-11-22
Current End Date: 2026-07-31
Potential End Date: 2026-07-31 00:00:00
Last Modified: 2025-09-09
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