Army awards $6.9M for Mortar Weapons System Components to Elbit America, Inc

Contract Overview

Contract Amount: $6,926,447 ($6.9M)

Contractor: Elbitamerica, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-29

End Date: 2025-09-30

Contract Duration: 154 days

Daily Burn Rate: $45.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR THE PROCUREMENT OF MORTAR WEAPONS SYSTEM COMPONENTS.

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76179

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to ELBITAMERICA, INC. for work described as: DELIVERY ORDER FOR THE PROCUREMENT OF MORTAR WEAPONS SYSTEM COMPONENTS. Key points: 1. Contract awarded for critical mortar system components, indicating ongoing defense needs. 2. Elbit America, Inc. is a significant player in defense manufacturing. 3. The contract value is moderate, but component criticality warrants attention. 4. Spending falls within the Defense sector, specifically ordnance manufacturing.

Value Assessment

Rating: good

The contract value of $6.9M for mortar weapon system components appears reasonable given the specialized nature of defense manufacturing. Benchmarking against similar, highly technical defense procurements suggests this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the best value for the government. This method allows all qualified vendors to bid, fostering price discovery.

Taxpayer Impact: Full and open competition aims to secure the best possible price for taxpayers by leveraging market forces.

Public Impact

Ensures continued readiness and operational capability for Army forces. Supports the defense industrial base and associated manufacturing jobs. Potential for follow-on contracts or broader system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Component obsolescence risk
  • Supply chain disruptions
  • Geopolitical impacts on defense spending

Positive Signals

  • Awarded under full and open competition
  • Clear delivery timeline
  • Experienced contractor

Sector Analysis

This procurement falls within the Defense sector, specifically the manufacturing of ordnance and related accessories. Spending benchmarks for such specialized components can vary widely based on technological complexity and volume.

Small Business Impact

While the prime contractor is Elbit America, Inc., the contract details do not specify any subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The Department of the Army is responsible for oversight of this delivery order. Standard procurement regulations and quality assurance processes are expected to be in place to ensure compliance and performance.

Related Government Programs

  • Small Arms, Ordnance, and Ordnance Accessories Manufacturing
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Potential supply chain dependencies
  • Contractor performance history review needed
  • Long-term sustainment strategy unclear
  • Dependency on specific technological advancements

Tags

small-arms-ordnance-and-ordnance-accesso, department-of-defense, tx, delivery-order, 1m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to ELBITAMERICA, INC.. DELIVERY ORDER FOR THE PROCUREMENT OF MORTAR WEAPONS SYSTEM COMPONENTS.

Who is the contractor on this award?

The obligated recipient is ELBITAMERICA, 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 $6.9 million.

What is the period of performance?

Start: 2025-04-29. End: 2025-09-30.

What is the specific impact of these components on the overall mortar weapon system's performance and lifespan?

The specific impact hinges on the criticality of these components. If they are key structural or operational parts, their quality and reliability directly influence the system's effectiveness, accuracy, and longevity. Failure or subpar performance of these components could lead to system malfunctions, reduced combat effectiveness, and increased maintenance costs, ultimately impacting soldier safety and mission success.

What are the primary risks associated with relying on Elbit America, Inc. for these critical components?

Primary risks include potential supply chain vulnerabilities, especially if Elbit America, Inc. relies on single-source suppliers for sub-components. There's also the risk of performance issues or delays, which could impact Army readiness. Dependence on a single large contractor might also limit future competitive pricing if this becomes a sole-source situation later.

How does the firm-fixed-price contract structure influence cost control and contractor performance?

A firm-fixed-price contract shifts most of the cost risk to the contractor, incentivizing efficiency and cost control. This structure provides budget certainty for the government. However, it can also lead contractors to cut corners on quality if not adequately monitored, or to inflate initial bids to cover potential unforeseen costs, making robust oversight crucial.

Industry Classification

NAICS: ManufacturingOther Fabricated Metal Product ManufacturingSmall Arms, Ordnance, and Ordnance Accessories 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: Elbit Systems Ltd

Address: 4700 MARINE CREEK PKWY, FORT WORTH, TX, 76179

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: $6,926,447

Exercised Options: $6,926,447

Current Obligation: $6,926,447

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $5,507,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN22D0018

IDV Type: IDC

Timeline

Start Date: 2025-04-29

Current End Date: 2025-09-30

Potential End Date: 2025-09-30 12:09:00

Last Modified: 2025-12-31

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