Army awards $11.5M for M2/M2A1 machine gun requirements to Ohio Ordnance Works Inc

Contract Overview

Contract Amount: $11,528,428 ($11.5M)

Contractor: Ohio Ordnance Works Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-11

End Date: 2027-07-30

Contract Duration: 687 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: DELIVERY ORDER FOR M2/M2A1 MACHINE GUN REQUIREMENTS

Place of Performance

Location: CHARDON, GEAUGA County, OHIO, 44024

State: Ohio Government Spending

Plain-Language Summary

Department of Defense obligated $11.5 million to OHIO ORDNANCE WORKS INC for work described as: DELIVERY ORDER FOR M2/M2A1 MACHINE GUN REQUIREMENTS Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 687 days indicates a medium-term supply need. 3. Fixed-price contract type aims to control costs for the government. 4. The award is a delivery order, implying it's part of a larger contract vehicle. 5. Focus on small arms manufacturing highlights a critical defense supply chain component.

Value Assessment

Rating: good

The contract value of $11.5 million for M2/M2A1 machine gun requirements appears reasonable given the nature of defense procurement. Without specific per-unit cost data or direct comparisons to identical contracts, a precise value-for-money assessment is challenging. However, the fixed-price contract type suggests an effort to establish a predictable cost for the government. The award to a single contractor for this delivery order implies that Ohio Ordnance Works Inc. was selected based on competitive factors or existing contract terms.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition after Exclusion of Sources,' which typically means the solicitation was broadly advertised, but specific sources were excluded for defined reasons, or it implies a competitive process was used to select from a pre-qualified list. The presence of two bids (no: 2) indicates some level of competition, though the exact number of bidders could be higher if the exclusion criteria were applied to a wider pool. This level of competition is generally favorable for price discovery.

Taxpayer Impact: A competitive bidding process, even with exclusions, helps ensure that taxpayer funds are used efficiently by driving down prices through market forces.

Public Impact

The U.S. Army benefits from the acquisition of essential M2/M2A1 machine gun systems. This contract supports the readiness and operational capabilities of U.S. military personnel. The geographic impact is primarily centered in Ohio, where Ohio Ordnance Works Inc. is located, potentially creating or sustaining local jobs. The contract directly impacts the defense manufacturing sector, specifically in small arms production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if 'exclusion of sources' significantly narrowed the bidder pool.
Reliance on a single contractor for this specific delivery order could pose supply chain risks if not managed effectively.

Positive Signals

Awarded under a full and open competition framework, indicating a structured procurement process.
Fixed-price contract type provides cost certainty for the government.
The contractor is based in Ohio, potentially supporting domestic manufacturing capabilities.

Sector Analysis

The defense sector, particularly the small arms and ordnance manufacturing segment, is characterized by specialized production capabilities and stringent quality requirements. This contract fits within the broader category of defense procurement for essential weaponry. Market size for such specialized components can be substantial, driven by military modernization and sustainment needs. Comparable spending benchmarks would involve analyzing other contracts for similar weapon systems or components awarded by various branches of the U.S. military.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false). Ohio Ordnance Works Inc. is likely a small business itself, given its size and specialization, but the contract was not formally designated as a small business set-aside. There is no explicit information on subcontracting plans, but large defense contracts often include provisions for small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting command and potentially the Department of Defense's Inspector General. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is generally maintained through contract award databases like FPDS, though specific performance details may be sensitive.

Related Government Programs

Department of the Army Small Arms Procurement
Ordnance and Accessories Manufacturing Contracts
M2 Machine Gun Sustainment
M2A1 Machine Gun Modernization

Risk Flags

Limited Competition Potential
Supply Chain Dependency
Quality Assurance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.5 million to OHIO ORDNANCE WORKS INC. DELIVERY ORDER FOR M2/M2A1 MACHINE GUN REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is OHIO ORDNANCE WORKS 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 $11.5 million.

What is the period of performance?

Start: 2025-09-11. End: 2027-07-30.

What is the historical spending pattern for M2/M2A1 machine gun requirements by the Department of Defense?

Analyzing historical spending for M2/M2A1 machine gun requirements reveals a consistent need for these weapon systems within the Department of Defense. Over the past five fiscal years, spending on these specific platforms and related components has fluctuated based on modernization efforts, operational tempo, and inventory replenishment cycles. For instance, significant investments were made during periods of heightened conflict requiring robust small arms support. While exact figures vary annually, the aggregate spending demonstrates a sustained commitment to maintaining and upgrading these critical assets. This particular $11.5 million award represents a portion of that ongoing investment, reflecting the continuous demand for reliable and effective machine gun systems in the U.S. military's arsenal. Further analysis would require examining specific contract awards for these items across different Army and Marine Corps commands.

How does the pricing of this contract compare to similar M2/M2A1 machine gun procurements?

Benchmarking the pricing of this $11.5 million contract for M2/M2A1 machine gun requirements against similar procurements is challenging without access to detailed cost breakdowns and unit prices for comparable awards. However, the contract type, 'FIRM FIXED PRICE,' suggests that the government has negotiated a set price, aiming for cost certainty. The number of bids received (2) provides a limited indication of competition. If this price is significantly higher or lower than historical awards for comparable quantities and configurations, it would warrant further investigation into factors such as inflation, specific technical requirements, or market conditions at the time of award. A thorough comparison would involve analyzing unit costs from previous contracts awarded to different manufacturers or even the same contractor for similar items.

What are the primary risks associated with this contract and the contractor's performance?

The primary risks associated with this contract include potential supply chain disruptions, quality control issues, and schedule delays. Given that this is a delivery order for specific weapon systems, any interruption in the manufacturing process or material sourcing by Ohio Ordnance Works Inc. could impact the Army's operational readiness. The contractor's track record in delivering complex defense systems on time and to specification is a key factor. While the fixed-price nature of the contract mitigates cost overrun risks for the government, it places the financial risk on the contractor if production costs exceed estimates. Furthermore, the 'after exclusion of sources' clause in the competition type warrants scrutiny to ensure that the exclusion criteria were justified and did not unduly limit competition, potentially leading to a less optimal price.

What is the expected effectiveness of the M2/M2A1 machine guns procured under this contract?

The M2/M2A1 machine guns are expected to be highly effective, as they are proven, reliable weapon systems integral to U.S. military operations. The M2 Browning machine gun, in its various iterations including the M2A1 variant, is a heavy machine gun known for its stopping power and versatility, used against personnel, unarmored vehicles, and light fortifications. The effectiveness of the procured weapons hinges on the quality of manufacturing and adherence to stringent military specifications by Ohio Ordnance Works Inc. The Army's requirement for these systems indicates their continued strategic importance. Assuming the contractor meets all quality and performance standards, the delivered weapons will enhance the firepower and combat capabilities of the units receiving them, contributing directly to mission success in diverse operational environments.

What is the significance of Ohio Ordnance Works Inc. being awarded this contract?

The significance of Ohio Ordnance Works Inc. being awarded this $11.5 million contract lies in its role as a specialized defense manufacturer contributing to the U.S. Army's small arms capabilities. As a company focused on ordnance and accessories, this award validates its expertise and capacity to produce critical weaponry. For the company, it represents a substantial revenue stream and reinforces its position within the defense industrial base. The award also highlights the Army's strategy of leveraging specialized contractors to meet specific equipment needs, potentially fostering innovation and competition within niche segments of the defense market. The geographic location in Ohio may also have implications for regional economic impact and employment within the defense manufacturing sector.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 310 PARK DR, CHARDON, OH, 44024

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $11,528,428

Exercised Options: $11,528,428

Current Obligation: $11,528,428

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN24D0046

IDV Type: IDC

Timeline