DoD Awards $33.2M for Metal Parts Testing, Highlighting Ammunition Manufacturing Needs
Contract Overview
Contract Amount: $33,211,006 ($33.2M)
Contractor: IMT Defense Corp
Awarding Agency: Department of Defense
Start Date: 2023-04-20
End Date: 2025-10-31
Contract Duration: 925 days
Daily Burn Rate: $35.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M1128 METAL PARTS INITIAL FIRST ARTICLE TEST.
Place of Performance
Location: CHAMPAIGN, CHAMPAIGN County, ILLINOIS, 43082
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $33.2 million to IMT DEFENSE CORP for work described as: M1128 METAL PARTS INITIAL FIRST ARTICLE TEST. Key points: 1. Significant award for initial testing of metal parts, crucial for ammunition production. 2. Competition method indicates potential for price discovery, but exclusion of sources warrants scrutiny. 3. Risk associated with sole-source exclusion and potential impact on future pricing. 4. Spending falls within the Ammunition Manufacturing sector, requiring specialized oversight.
Value Assessment
Rating: fair
The award amount of $33.2M for initial testing appears substantial. Benchmarking against similar initial article testing contracts is difficult without more specific details on the scope and complexity of the metal parts involved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This suggests a limited competition where specific sources were excluded, potentially impacting the price discovery process and overall value for money.
Taxpayer Impact: The exclusion of sources may limit competitive pressure, potentially leading to higher costs for taxpayers compared to a truly full and open competition.
Public Impact
Ensures quality and readiness of critical ammunition components. Supports defense industrial base and manufacturing capabilities. Potential for increased costs due to limited competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about price reasonableness.
- Exclusion of sources may not be fully justified.
- Contract duration is lengthy for initial testing.
Positive Signals
- Focus on initial article testing ensures component quality.
- Award supports a key defense manufacturing capability.
Sector Analysis
This contract falls under Ammunition (except Small Arms) Manufacturing. Spending in this sector is critical for national defense, but often involves specialized processes and limited supplier bases, making oversight challenging.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army. Oversight will be crucial to ensure the testing meets all requirements and that the limited competition was appropriately justified and managed.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition (exclusion of sources)
- Potential for price inflation
- Lack of small business participation
- Extended contract duration for initial testing
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, oh, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.2 million to IMT DEFENSE CORP. M1128 METAL PARTS INITIAL FIRST ARTICLE TEST.
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 $33.2 million.
What is the period of performance?
Start: 2023-04-20. End: 2025-10-31.
What specific criteria were used to exclude sources in this 'full and open competition after exclusion of sources' award, and how does this impact the overall value for taxpayer dollars?
The justification for excluding specific sources is critical. If based on unique capabilities or security requirements, it might be defensible. However, if the exclusion was arbitrary, it could stifle competition, leading to inflated prices and reduced value. A thorough review of the source selection documentation is necessary to assess the validity of the exclusion and its impact on cost-effectiveness.
What are the primary risks associated with awarding a $33.2M contract for initial article testing under limited competition, particularly concerning long-term supply chain reliability?
The primary risks include potential price inflation due to reduced competition, and a narrowed supplier base that could create future vulnerabilities. If the excluded sources possess critical expertise or capacity, their absence could hinder long-term supply chain resilience and innovation. Ensuring robust quality control and performance monitoring is paramount to mitigate immediate risks.
How effective is the current contract structure in ensuring the quality and timely delivery of these critical metal parts, given the extended duration and limited competition?
The effectiveness hinges on stringent performance metrics and oversight. The 925-day duration for initial testing suggests a complex process. While firm fixed price aims for cost control, limited competition might reduce incentives for efficiency. Regular progress reviews and quality assurance checks are vital to ensure the contract achieves its objectives without compromising quality or incurring unnecessary costs.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W15QKN22R0008
Offers Received: 2
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, Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $33,211,006
Exercised Options: $33,211,006
Current Obligation: $33,211,006
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN23D0026
IDV Type: IDC
Timeline
Start Date: 2023-04-20
Current End Date: 2025-10-31
Potential End Date: 2026-01-31 12:01:00
Last Modified: 2026-01-15
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