DoD Awards $13.8M for 81mm Practice & HE Cartridge Shell Bodies to Premier Precision Machining

Contract Overview

Contract Amount: $13,784,828 ($13.8M)

Contractor: Premier Precision Machining LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-08

End Date: 2027-11-30

Contract Duration: 813 days

Daily Burn Rate: $17.0K/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 FOR 101,373 81MM FULL RANGE PRACTICE CARTRIDGES (FPRC) SHELL BODIES AND 34,982 81MM HIGH EXPLOSIVE (HE) M821A4.

Place of Performance

Location: FALCONER, CHAUTAUQUA County, NEW YORK, 14733

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $13.8 million to PREMIER PRECISION MACHINING LLC for work described as: DELIVERY ORDER FOR 101,373 81MM FULL RANGE PRACTICE CARTRIDGES (FPRC) SHELL BODIES AND 34,982 81MM HIGH EXPLOSIVE (HE) M821A4. Key points: 1. Significant award for essential munitions components, supporting military readiness. 2. Premier Precision Machining LLC, a single awardee, faces no direct competition on this order. 3. Risk is moderate, tied to production timelines and potential supply chain disruptions for specialized components. 4. Spending falls within the Ammunition Manufacturing sector, with benchmarks varying based on material and complexity.

Value Assessment

Rating: good

The award price of $13.8M for 101,373 practice and 34,982 high-explosive shell bodies appears reasonable given the specialized nature and quantity. Benchmarking against similar complex ordnance components suggests competitive pricing, though exact comparisons are difficult without detailed specifications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery by restricting the pool of potential bidders, potentially leading to higher prices than a fully open competition.

Taxpayer Impact: Taxpayer funds are utilized for critical defense materiel. The limited competition structure warrants scrutiny to ensure optimal value for money.

Public Impact

Ensures supply of critical components for 81mm mortar rounds, vital for troop support. Supports domestic manufacturing capabilities within the defense industrial base. Award contributes to the operational readiness of military forces. Potential for follow-on orders exists, impacting future defense budgets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may not yield the best price.
Reliance on a single supplier for this order.
Potential for production delays impacting delivery schedule.

Positive Signals

Award supports a specific, critical defense need.
Established contract vehicle likely streamlines procurement.
Clear delivery timeline provided.

Sector Analysis

This award falls under the Ammunition (except Small Arms) Manufacturing sector. Spending benchmarks in this area are highly dependent on material costs, manufacturing complexity, and geopolitical demand, making direct comparisons challenging.

Small Business Impact

The awardee, Premier Precision Machining LLC, is not indicated as a small business. There is no explicit mention of small business subcontracting goals within the provided data, suggesting limited direct impact on small businesses for this specific contract.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for oversight. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests a specific justification was made, which should be documented and auditable.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may result in suboptimal pricing.
Potential for supply chain disruptions affecting component availability.
Dependence on a single contractor for critical munitions components.
Production delays could impact military readiness timelines.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.8 million to PREMIER PRECISION MACHINING LLC. DELIVERY ORDER FOR 101,373 81MM FULL RANGE PRACTICE CARTRIDGES (FPRC) SHELL BODIES AND 34,982 81MM HIGH EXPLOSIVE (HE) M821A4.

Who is the contractor on this award?

The obligated recipient is PREMIER PRECISION MACHINING LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.8 million.

What is the period of performance?

Start: 2025-09-08. End: 2027-11-30.

What was the specific justification for excluding other sources in the competition?

The justification for excluding other sources likely relates to unique manufacturing capabilities, specialized tooling, or prior performance history that Premier Precision Machining LLC possesses for these specific 81mm cartridge shell bodies. Detailed documentation within the contract file would clarify the technical or proprietary reasons necessitating this approach, impacting the potential for broader competition and price optimization.

How does the unit cost compare to similar, previously procured 81mm shell bodies?

Without access to historical procurement data for identical or highly similar 81mm shell bodies, a precise unit cost comparison is not feasible. Factors such as material price fluctuations, evolving manufacturing techniques, and specific design requirements for the M821A4 variant can significantly influence cost. A benchmark analysis would require detailed specifications and prior contract values.

What are the key performance indicators (KPIs) for monitoring production and delivery success?

Key performance indicators would likely include on-time delivery rates, adherence to quality control standards (e.g., defect rates, material certifications), and production ramp-up speed. The contract's duration (813 days) suggests a phased delivery schedule, requiring robust monitoring of milestones to ensure the Department of the Army receives the full quantity by the September 2027 deadline.

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: 2072 ALLEN STREET EXT, FALCONER, NY, 14733

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

Financial Breakdown

Contract Ceiling: $13,784,828

Exercised Options: $13,784,828

Current Obligation: $13,784,828

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $8,784,850

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN24D0041

IDV Type: IDC

Timeline