DoD Awards $146.8M Contract for Ammunition Manufacturing to SAAB, Inc. Under Full and Open Competition
Contract Overview
Contract Amount: $146,779,022 ($146.8M)
Contractor: Saab, Inc
Awarding Agency: Department of Defense
Start Date: 2024-08-28
End Date: 2028-08-30
Contract Duration: 1,463 days
Daily Burn Rate: $100.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: XM919 IAM
Plain-Language Summary
Department of Defense obligated $146.8 million to SAAB, INC for work described as: XM919 IAM Key points: 1. Contract Value: $146.8 million over approximately 4 years. 2. Competition: Awarded via full and open competition, indicating a competitive bidding process. 3. Risk: Firm Fixed Price contract type mitigates cost overrun risk for the government. 4. Sector: Defense sector, specifically ammunition manufacturing.
Value Assessment
Rating: good
The contract value of $146.8 million for ammunition manufacturing appears reasonable given the duration and scope. Benchmarking against similar large-scale ammunition production contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is expected to yield favorable pricing for taxpayers, ensuring efficient use of public funds for essential defense materiel.
Public Impact
Ensures supply of critical ammunition for defense operations. Supports manufacturing capabilities within the defense industrial base. Potential for job creation in the defense manufacturing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type.
- Significant contract value indicates critical need.
Sector Analysis
This contract falls within the defense industrial base, specifically focusing on ammunition manufacturing. Spending in this sector is crucial for national security and readiness, with typical contract values varying widely based on quantity and type of ordnance.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. SAAB, Inc. is a large corporation, suggesting that small businesses may have participated as subcontractors, but direct award to SMBs is not evident.
Oversight & Accountability
The Department of Defense, through the Defense Contract Management Agency, is responsible for overseeing this contract. Standard oversight procedures for contract performance, quality, and delivery are expected to be in place.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for supply chain disruptions affecting delivery.
- Dependence on a single large contractor for critical munitions.
- Geopolitical factors could impact raw material availability or cost.
- Long-term sustainment and obsolescence planning for ammunition types.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $146.8 million to SAAB, INC. XM919 IAM
Who is the contractor on this award?
The obligated recipient is SAAB, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $146.8 million.
What is the period of performance?
Start: 2024-08-28. End: 2028-08-30.
What is the historical performance of SAAB, Inc. in fulfilling similar defense contracts, particularly regarding on-time delivery and quality standards?
Assessing SAAB, Inc.'s past performance is crucial for understanding potential risks and ensuring successful contract execution. Reviewing their track record on previous ammunition or defense manufacturing contracts, including any history of delays, quality issues, or cost overruns, would provide valuable insight into their reliability and capability to meet the demands of this new award.
How does the unit cost of the ammunition procured under this contract compare to similar items purchased by other allied nations or through different procurement channels?
Benchmarking the unit cost against international procurements or alternative government purchasing methods can reveal potential cost savings or inefficiencies. If this contract's pricing is significantly higher, it may warrant further investigation into the specific requirements, production complexities, or market conditions that influenced the final price.
What are the specific types and quantities of ammunition being procured, and how do these align with current and projected military operational needs?
Understanding the precise nature of the ammunition and its strategic relevance is key to evaluating the contract's effectiveness. Aligning the procurement with documented military requirements ensures that taxpayer funds are being used to acquire necessary materiel, rather than surplus or outdated inventory, thereby maximizing the return on investment for national defense.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Saab Defense and Security USA LLC
Address: 5717 ENTERPRISE PKWY, EAST SYRACUSE, NY, 13057
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Manufacturer of Goods, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $146,779,022
Exercised Options: $146,779,022
Current Obligation: $146,779,022
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN24D0032
IDV Type: IDC
Timeline
Start Date: 2024-08-28
Current End Date: 2028-08-30
Potential End Date: 2028-08-30 00:00:00
Last Modified: 2026-02-02
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