DoD awards $139M for M918E2 cartridges, with Amtec Corp. securing the contract
Contract Overview
Contract Amount: $139,288,352 ($139.3M)
Contractor: Amtec Corporation
Awarding Agency: Department of Defense
Start Date: 2025-12-30
End Date: 2027-11-30
Contract Duration: 700 days
Daily Burn Rate: $199.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 40MM M918E2 HIGH VELOCITY TARGET PRACTICE-DAY/ NIGHT/ THERMAL CARTRIDGES
Place of Performance
Location: JANESVILLE, ROCK County, WISCONSIN, 53546
Plain-Language Summary
Department of Defense obligated $139.3 million to AMTEC CORPORATION for work described as: 40MM M918E2 HIGH VELOCITY TARGET PRACTICE-DAY/ NIGHT/ THERMAL CARTRIDGES Key points: 1. Contract value of $139.3 million for specialized ammunition. 2. Amtec Corporation is the sole awardee. 3. Potential risks include reliance on a single supplier and long-term availability. 4. Spending falls within the Ammunition (except Small Arms) Manufacturing sector.
Value Assessment
Rating: good
The contract value of $139.3 million for M918E2 cartridges appears reasonable given the specialized nature and quantity. Benchmarking against similar high-velocity ammunition contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data indicates a single delivery order to AMTEC CORPORATION, which warrants further investigation into the competition dynamics for this specific award.
Taxpayer Impact: Taxpayer funds are being used for essential military training and readiness. The competitive award process aims to ensure fair pricing, but the long-term implications of a single supplier need monitoring.
Public Impact
Ensures readiness for military training exercises. Supports the defense industrial base. Provides specialized ammunition for day, night, and thermal operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Single awardee for a significant contract value.
- Long contract duration (2025-2027).
Positive Signals
- Awarded under full and open competition.
- Supports critical defense capabilities.
Sector Analysis
This contract falls under the Ammunition (except Small Arms) Manufacturing sector. Spending in this sector is driven by defense needs and technological advancements in ordnance.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army awarded this contract, implying oversight from a major defense agency. The contract's duration and value suggest regular performance monitoring and accountability measures should be in place.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Single awardee.
- Long-term contract.
- Potential for price escalation.
- Supply chain dependency.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, wi, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $139.3 million to AMTEC CORPORATION. 40MM M918E2 HIGH VELOCITY TARGET PRACTICE-DAY/ NIGHT/ THERMAL CARTRIDGES
Who is the contractor on this award?
The obligated recipient is AMTEC CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $139.3 million.
What is the period of performance?
Start: 2025-12-30. End: 2027-11-30.
What is the specific operational advantage of the M918E2 cartridge that justifies its procurement?
The M918E2 cartridge is designed for high-velocity target practice, offering day, night, and thermal capabilities. This allows for realistic training scenarios across various conditions, enhancing soldier proficiency and combat readiness. Its specific design likely provides a unique training benefit not easily replicated by standard ammunition.
Are there any identified risks associated with relying on AMTEC CORPORATION as the sole supplier for this critical ammunition?
Relying on a single supplier, AMTEC CORPORATION, for a significant contract like this presents potential risks. These include supply chain vulnerabilities, potential price increases in future procurements, and reduced leverage for the government if production issues arise. Contingency planning for alternative sources or ensuring robust supplier performance metrics is crucial.
How effectively does this contract contribute to the overall readiness and training objectives of the Department of the Army?
This contract directly supports the Army's training objectives by providing essential ammunition for realistic practice. The ability to train in day, night, and thermal conditions is vital for modern warfare readiness. The $139.3 million investment suggests a significant commitment to maintaining a high level of operational preparedness for relevant units.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: National Presto Industries, Inc.
Address: 4230 CAPITAL CIR, JANESVILLE, WI, 53546
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $139,288,352
Exercised Options: $139,288,352
Current Obligation: $139,288,352
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN24D0022
IDV Type: IDC
Timeline
Start Date: 2025-12-30
Current End Date: 2027-11-30
Potential End Date: 2027-11-30 12:11:00
Last Modified: 2025-12-30
More Contracts from Amtec Corporation
- Fixed Price W/ EPA Contract. This Contract IS for the Production of 40MM Grenade Systems Family of Ammunition: M430a1-Metal Pallet, M430a1-Wood Pallet, M433, M583A1, M781, M918, Mixed Belt, M385A1, M992, M585, M661, M662, and M433E1, and M583A1 — $965.1M (Department of Defense)
- 200508!000997!2100!w52p1j!u.s. Army Industrial Operations !w52p1j05c0030 !A!N! !N! ! !20050429!20100930!884356429!884356429!006196174!n!amtec Corporation !4230 Capital Circle DR !janesville !wi!53546!37825!105!55!janesville !rock !wisconsin !+000046910882!n!n!000046910882!1310!ammunition, Over 30 MM UP to 75 MM !A6 !ammunition !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !a!n!k!2!006!k! !Z!N!F! ! !n!b!n!n! ! !D! !b!a!000!a!b!y!c! ! ! ! ! !0001! ! — $675.2M (Department of Defense)
- 40MM Grenade Family Systems for Fy10-Fy14 — $542.5M (Department of Defense)
- 40 Millimeter Grenade Ammunition Contract — $539.6M (Department of Defense)
- 40MM Grenade Family Systems for FY10-14 — $296.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)