DoD Awards $78.4M Contract to IMT Defense for 155mm M795 Shell Production for Ukraine
Contract Overview
Contract Amount: $78,445,740 ($78.4M)
Contractor: IMT Defense Corp
Awarding Agency: Department of Defense
Start Date: 2023-11-21
End Date: 2028-08-31
Contract Duration: 1,745 days
Daily Burn Rate: $45.0K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MANUFACTURE, PRODUCE, AND DELIVER 155MM M795 METAL PARTS IN SUPPORT OF UKRAINE
Plain-Language Summary
Department of Defense obligated $78.4 million to IMT DEFENSE CORP for work described as: MANUFACTURE, PRODUCE, AND DELIVER 155MM M795 METAL PARTS IN SUPPORT OF UKRAINE Key points: 1. Significant award for critical munitions supporting international allies. 2. Sole-source award raises questions about price discovery and competition. 3. High-value contract for a specific defense commodity. 4. Potential for follow-on orders given ongoing geopolitical needs.
Value Assessment
Rating: fair
The contract value of $78.4M for 155mm M795 metal parts appears substantial. Without specific unit counts or detailed cost breakdowns, a direct comparison to similar contracts is difficult. However, the lack of competition suggests potential for higher-than-market pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may not yield the best value for taxpayers, as alternative suppliers were not considered.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the most cost-effective pricing available for these critical munitions.
Public Impact
Direct support to Ukraine's defense efforts. Impacts the global supply chain for artillery ammunition. Highlights U.S. commitment to providing military aid. Potential for increased domestic production capacity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- Limited price transparency
Positive Signals
- Supports allied defense needs
- Addresses critical munitions shortage
- Long-term delivery schedule
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending in this area is heavily influenced by geopolitical events and national security priorities. Benchmarks are often classified or difficult to ascertain due to the specialized nature of the products.
Small Business Impact
The awardee, IMT Defense Corp, is not identified as a small business. There is no indication that subcontracting opportunities for small businesses were a primary consideration in this sole-source award.
Oversight & Accountability
The Department of Defense awarded this contract. Oversight will focus on contract performance, delivery schedules, and adherence to the firm fixed price terms. The lack of competition warrants closer scrutiny of pricing and justification.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Lack of transparency on pricing justification.
- Potential for cost overruns without competitive pressure.
- Dependence on a single supplier for critical munitions.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $78.4 million to IMT DEFENSE CORP. MANUFACTURE, PRODUCE, AND DELIVER 155MM M795 METAL PARTS IN SUPPORT OF UKRAINE
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 $78.4 million.
What is the period of performance?
Start: 2023-11-21. End: 2028-08-31.
What is the justification for the sole-source award, and what steps were taken to ensure fair pricing without competition?
The justification for a sole-source award typically involves factors like urgency, unique capabilities, or lack of alternative sources. For this contract, the specific rationale needs to be documented by the agency. Without competition, the Department of Defense likely relied on historical pricing, market research on available capacity, or cost analysis to establish a fair price, though transparency on these methods is limited.
What is the projected cost per 155mm M795 metal part, and how does it compare to industry benchmarks?
The provided data does not include the quantity of metal parts to be produced, making a precise per-unit cost calculation impossible. The total award is $78.4 million. Without knowing the number of units, it's difficult to establish a per-unit cost and compare it to industry benchmarks. This lack of detail hinders a thorough value assessment.
What is the long-term strategic impact of this sole-source award on the domestic production capacity for 155mm artillery shells?
This award could bolster domestic production capacity for critical 155mm shells, especially given the high demand from Ukraine. However, a sole-source award might not incentivize broader market investment or competition, potentially concentrating production with one entity. The long-term impact depends on whether this leads to sustained investment and capacity expansion beyond immediate needs.
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: $78,445,740
Exercised Options: $78,445,740
Current Obligation: $78,445,740
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: 2023-11-21
Current End Date: 2028-08-31
Potential End Date: 2028-08-31 12:08:00
Last Modified: 2025-09-09
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