DoD awards $5.2M for mortar shell bodies, with delivery expected by late 2026

Contract Overview

Contract Amount: $5,244,167 ($5.2M)

Contractor: Global Military Products Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-24

End Date: 2026-09-30

Contract Duration: 736 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER #2 60/81MM MORTAR SHELL BODIES

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $5.2 million to GLOBAL MILITARY PRODUCTS INC for work described as: DELIVERY ORDER #2 60/81MM MORTAR SHELL BODIES Key points: 1. Contract value appears reasonable given the specialized nature of ammunition manufacturing. 2. Competition was conducted under a full and open process, suggesting a competitive market. 3. The contract duration of over two years indicates a sustained need for these components. 4. This award falls within the broader category of defense manufacturing, a critical sector. 5. Performance risk appears moderate, typical for established defense suppliers.

Value Assessment

Rating: good

The awarded amount of $5.24 million for 60/81mm mortar shell bodies is a specific line item within a larger potential contract ceiling. Without more data on the total ceiling or prior delivery orders, a direct comparison is difficult. However, the price per unit, if calculable, would be the key metric for benchmarking against similar defense contracts. Given the nature of defense procurement, fixed-price contracts aim to control costs, and this award appears to be within a reasonable range for specialized ordnance components.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific designation suggests that while the initial solicitation may have been broad, certain sources were excluded, potentially narrowing the competitive pool. The presence of 3 bidders indicates some level of competition, but the exclusion of sources warrants further investigation to understand its impact on price discovery and overall market fairness.

Taxpayer Impact: The exclusion of sources, even with multiple bidders, could potentially limit the most competitive pricing from reaching taxpayers. A fully open competition without exclusions typically yields better price discovery.

Public Impact

The Department of the Army benefits from the acquisition of essential mortar shell components. This contract ensures the supply of critical ammunition parts for military operations. The geographic impact is primarily within Florida, where the contractor is located. Workforce implications include continued employment at Global Military Products Inc. and its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Reliance on a single delivery order for a significant portion of the contract value.

Positive Signals

Award to a single contractor indicates a clear point of accountability.
Fixed-price contract type helps to manage cost certainty for the government.
Contract duration suggests a stable and predictable supply chain for the DoD.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. The market for ordnance components is highly specialized, often dominated by a few key players due to stringent quality and security requirements. Spending in this area is directly tied to national defense budgets and geopolitical needs. Comparable spending benchmarks would typically be found within the broader 'Weapons, Missiles, and Ammunition' categories of defense procurement data.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The focus remains on larger defense contractors capable of meeting the specialized requirements for ammunition manufacturing.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability is established through the firm fixed-price contract terms and delivery schedules. Transparency is facilitated by public contract databases, though detailed operational oversight specifics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Ammunition Procurement
Ordnance Manufacturing Contracts
Military Equipment Supply Chain

Risk Flags

Potential for limited competition due to source exclusion.
Dependence on a single delivery order for a significant contract value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.2 million to GLOBAL MILITARY PRODUCTS INC. DELIVERY ORDER #2 60/81MM MORTAR SHELL BODIES

Who is the contractor on this award?

The obligated recipient is GLOBAL MILITARY PRODUCTS INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2024-09-24. End: 2026-09-30.

What is the historical spending pattern for 60/81mm mortar shell bodies by the Department of Defense?

Analyzing historical spending for 60/81mm mortar shell bodies requires a deep dive into historical contract databases, filtering by product codes (PSC) related to ammunition and specific keywords. The Department of Defense (DoD) consistently procures such components as they are fundamental to infantry and artillery operations. Spending levels can fluctuate based on operational tempo, inventory levels, modernization programs, and geopolitical events. For instance, periods of increased conflict or strategic shifts towards conventional warfare often see a rise in demand and subsequent spending. Without access to a comprehensive historical database for this specific item, it's challenging to provide exact figures, but it's reasonable to assume multi-million dollar annual expenditures across various contracts and vendors to maintain adequate stockpiles and operational readiness.

How does the price per unit for these mortar shell bodies compare to similar contracts awarded in the past year?

To accurately compare the price per unit, we would need the total quantity of shell bodies procured under this $5.24 million delivery order. Assuming the 'DELIVERY ORDER #2 60/81MM MORTAR SHELL BODIES' implies a specific quantity, we could calculate a unit price. Benchmarking this against other contracts for similar components (e.g., 60mm or 81mm mortar shells, or even similar caliber artillery shells) awarded by the DoD or other military branches in the last 12-18 months would be crucial. Factors like material costs, manufacturing complexity, quality assurance requirements, and the specific vendor's overhead and profit margins influence unit pricing. A higher unit price might be justified by superior material specifications, tighter tolerances, or a more complex manufacturing process. Conversely, a significantly lower unit price could indicate greater efficiency, economies of scale, or more aggressive competition.

What are the specific risks associated with Global Military Products Inc. as a contractor for this type of ordnance?

Risks associated with Global Military Products Inc. (GMP) as a contractor for ordnance components like mortar shell bodies can be assessed through several lenses. Firstly, their track record in delivering similar defense articles on time and to specification is paramount. Any history of past performance issues, such as delays, quality defects, or contract disputes, would represent a significant risk. Secondly, their financial stability and capacity to scale production to meet demand are critical; a contractor facing financial distress could jeopardize supply continuity. Thirdly, compliance with stringent defense manufacturing standards (e.g., ITAR, quality certifications) is essential. Non-compliance can lead to production halts or rejection of goods. Finally, the 'exclusion of sources' in the competition process, as noted, could indicate potential concerns about GMP's ability to compete broadly or past issues that led to source exclusion, which warrants further investigation into the specific reasons.

What is the expected impact of this contract on the overall readiness and supply chain of the U.S. Army's mortar capabilities?

This contract directly supports the U.S. Army's readiness by ensuring a supply of critical components for 60mm and 81mm mortar shells. These mortars are essential indirect fire support weapons for infantry units, providing crucial battlefield capabilities. By securing these shell bodies, the Army can maintain or replenish its stocks, ensuring that units have the necessary ammunition for training, deployment, and combat operations. The impact on the supply chain is also significant; it validates and sustains a segment of the defense industrial base responsible for ordnance manufacturing. This award contributes to the stability of GMP and potentially its subcontractors, reinforcing the specialized manufacturing capacity needed to support the military's long-term ammunition requirements and reducing reliance on potentially vulnerable or less capable suppliers.

How does the contract type (Firm Fixed Price) influence the government's risk and the contractor's incentive for efficiency?

The Firm Fixed Price (FFP) contract type places the majority of the cost risk on the contractor, Global Military Products Inc. This means that GMP is obligated to deliver the specified mortar shell bodies for the agreed-upon price, regardless of their actual costs incurred during production. This provides the government with significant cost certainty, as the total expenditure is known upfront. For the contractor, the FFP structure creates a strong incentive to manage costs efficiently and maintain high productivity to maximize profit margins. If GMP can produce the shell bodies below the fixed price, their profit increases. Conversely, if costs exceed the fixed price due to unforeseen issues like material price increases or production inefficiencies, GMP absorbs those losses. This contract type is generally favored for well-defined requirements where cost and performance risks can be reasonably estimated.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2701 N ROCKY POINT DR STE 980, TAMPA, FL, 33607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $5,244,167

Exercised Options: $5,244,167

Current Obligation: $5,244,167

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN24D0031

IDV Type: IDC

Timeline