Department of the Army awards $39.9M contract for 120MM mortar shell bodies to Premier Precision Machining LLC

Contract Overview

Contract Amount: $39,908,434 ($39.9M)

Contractor: Premier Precision Machining LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-26

End Date: 2028-06-30

Contract Duration: 1,008 days

Daily Burn Rate: $39.6K/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: PPM DELIVERY ORDER #1 120MM MORTAR SHELL BODIES

Place of Performance

Location: FALCONER, CHAUTAUQUA County, NEW YORK, 14733

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $39.9 million to PREMIER PRECISION MACHINING LLC for work described as: PPM DELIVERY ORDER #1 120MM MORTAR SHELL BODIES Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a deliberate selection process. 2. The contract duration of approximately 3.3 years suggests a sustained need for these critical munitions components. 3. The firm-fixed-price contract type aims to provide cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 332993 points to a specialized manufacturing sector. 5. This award represents a significant investment in the defense industrial base for artillery components.

Value Assessment

Rating: good

The awarded amount of $39.9 million for 120mm mortar shell bodies appears reasonable given the specialized nature of the product and the firm-fixed-price contract type. Benchmarking against similar contracts for munitions components is challenging without more specific data on quantity and specifications. However, the award to a single contractor suggests a competitive process that likely yielded a fair market price. The duration of the contract also implies a stable demand, which can sometimes lead to better pricing through economies of scale.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, specific sources were excluded, possibly due to pre-qualification requirements, past performance, or specific technical capabilities. The number of bidders is not explicitly stated, but the designation suggests a controlled competitive environment rather than a completely unrestricted one. This approach can sometimes lead to more specialized or technically adept contractors being considered.

Taxpayer Impact: While not a completely unrestricted open competition, the process aimed to ensure fair pricing by considering multiple qualified sources. The exclusion of certain sources warrants further understanding to ensure maximum taxpayer value was achieved.

Public Impact

The primary beneficiaries are the U.S. Army units requiring 120mm mortar ammunition for training and operational readiness. This contract ensures the continued supply of essential components for indirect fire support capabilities. The manufacturing will likely occur in New York, potentially supporting local jobs and the regional economy. The contract contributes to the readiness and effectiveness of the U.S. military's ground forces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources, which could impact price discovery.
Reliance on a single contractor for a critical component could pose supply chain risks if not managed proactively.

Positive Signals

Award to a single, presumably qualified, contractor suggests a focused and potentially efficient manufacturing process.
Firm-fixed-price contract provides cost predictability for the government.
Longer contract duration may allow for production efficiencies and stable supply.

Sector Analysis

The defense manufacturing sector, specifically focusing on ordnance and ammunition components, is a critical but often specialized area. This contract falls under the 'Ammunition (except Small Arms) Manufacturing' industry. The market for such components is driven by military demand, requiring high standards of quality, reliability, and production capacity. Spending in this sector is often characterized by long-term contracts and significant R&D investment to maintain technological superiority.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Premier Precision Machining LLC's size status is not provided, but the nature of defense manufacturing for critical components often involves larger, specialized firms. There is no explicit mention of subcontracting requirements for small businesses within this award notice, suggesting that the prime contractor will likely handle the majority of the work. This could limit opportunities for small businesses to participate directly in this specific contract.

Oversight & Accountability

The contract is subject to standard Department of Defense oversight mechanisms. As a delivery order under a larger contract vehicle, its execution will be monitored by the issuing agency (Department of the Army). The firm-fixed-price nature provides a degree of financial oversight. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of the Army Ammunition Procurement
120mm Mortar Systems
Defense Industrial Base Manufacturing
Ordnance Production Contracts

Risk Flags

Limited competition due to source exclusion
Single source reliance for critical component

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.9 million to PREMIER PRECISION MACHINING LLC. PPM DELIVERY ORDER #1 120MM MORTAR SHELL BODIES

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 $39.9 million.

What is the period of performance?

Start: 2025-09-26. End: 2028-06-30.

What is the specific quantity of 120mm mortar shell bodies being procured under this delivery order?

The provided data does not explicitly state the quantity of 120mm mortar shell bodies. The award amount is $39,908,434, and the contract duration is approximately 1008 days (around 3.3 years). Without a specified unit price or total quantity, it is difficult to determine the exact number of shell bodies. The 'br' field shows 39592, which might represent a quantity or a related metric, but its exact meaning in relation to the shell bodies is not defined in the provided schema. Further clarification from the contract details would be needed to ascertain the precise quantity.

How does the awarded amount compare to historical spending on similar mortar shell bodies?

Direct historical spending comparisons for this specific contract are not available within the provided data. However, the award of $39.9 million over approximately 3.3 years suggests a significant and sustained procurement effort. To benchmark effectively, one would need to analyze past contracts for 120mm mortar shell bodies, considering factors like quantity, material specifications, and inflation. The 'full and open competition after exclusion of sources' suggests a deliberate process to achieve competitive pricing, but without comparative data points, a precise value-for-money assessment against historical trends is limited.

What are the specific technical specifications or requirements for these 120mm mortar shell bodies?

The provided data identifies the item as 'PPM DELIVERY ORDER #1 120MM MORTAR SHELL BODIES' and assigns the NAICS code 332993 (Ammunition (except Small Arms) Manufacturing). However, it does not detail the specific technical specifications, materials, or performance requirements for these shell bodies. These details are typically found in the Statement of Work (SOW) or technical exhibits associated with the contract. Understanding these specifications is crucial for assessing the complexity of manufacturing and the appropriateness of the awarded price.

What is the track record of Premier Precision Machining LLC in fulfilling defense contracts, particularly for munitions?

Information regarding the specific track record of Premier Precision Machining LLC in fulfilling defense contracts, especially for munitions, is not included in the provided data snippet. A comprehensive assessment would require reviewing their past performance history, including on-time delivery, quality adherence, and overall contract success rates with government agencies. Databases like the Federal Procurement Data System (FPDS) or CPARS (Contractor Performance Assessment Reporting System) would typically contain such information, allowing for an evaluation of their reliability and capability in this specialized manufacturing area.

What are the potential risks associated with relying on a single contractor for this critical defense component?

Relying on a single contractor, even one selected through a competitive process, introduces several potential risks. These include supply chain disruptions due to unforeseen events affecting the contractor (e.g., natural disasters, labor issues, financial instability), potential for price increases in future contract modifications or renewals if competition is not re-established, and a reduced ability for the government to leverage competition for better terms. Furthermore, if the contractor faces quality control issues, the entire supply of this critical component could be jeopardized, impacting military readiness.

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: 2

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, HUBZone Firm, Limited Liability Corporation, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,908,434

Exercised Options: $39,908,434

Current Obligation: $39,908,434

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,904,662

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15QKN25D0030

IDV Type: IDC

Timeline