DoD Awards $402M Ammunition Contract to Global Military Products Inc
Contract Overview
Contract Amount: $401,956,810 ($402.0M)
Contractor: Global Military Products Inc
Awarding Agency: Department of Defense
Start Date: 2023-01-30
End Date: 2024-05-31
Contract Duration: 487 days
Daily Burn Rate: $825.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SAWS RFP 07 155MM HE COMPLETE REQUIREMENTS
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $402.0 million to GLOBAL MILITARY PRODUCTS INC for work described as: SAWS RFP 07 155MM HE COMPLETE REQUIREMENTS Key points: 1. Contract value of $401,956,810 for ammunition. 2. Awarded to Global Military Products Inc. 3. Full and open competition was utilized. 4. Sector is Defense (Ammunition Manufacturing).
Value Assessment
Rating: good
The contract value of $401,956,810 appears reasonable for the scope of ammunition manufacturing. Benchmarking against similar large-scale defense contracts for specialized munitions would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: Taxpayer funds are being utilized efficiently through a competitive bidding process, aiming to secure necessary ammunition at the best possible price.
Public Impact
Ensures supply of critical ammunition for defense operations. Supports the defense industrial base and manufacturing capabilities. Potential for job creation within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Dependence on a single contractor for a critical supply.
- Potential for cost overruns if not managed closely.
- Geopolitical factors impacting supply chain stability.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract type limits cost risk.
- Contract duration allows for sustained supply.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by military readiness requirements and geopolitical events, with significant government investment.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
The Department of the Army is the contracting agency, implying established oversight mechanisms. However, the duration and value necessitate continuous monitoring for performance and financial accountability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a single entity.
- Long contract duration (487 days).
- Potential for supply chain disruptions.
- Reliance on specific manufacturing capabilities.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $402.0 million to GLOBAL MILITARY PRODUCTS INC. SAWS RFP 07 155MM HE COMPLETE REQUIREMENTS
Who is the contractor on this award?
The obligated recipient is GLOBAL MILITARY PRODUCTS 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 $402.0 million.
What is the period of performance?
Start: 2023-01-30. End: 2024-05-31.
What is the specific type and quantity of ammunition being procured under this contract?
The provided data specifies the North American Industry Classification System (NAICS) code 332993 for Ammunition (except Small Arms) Manufacturing. However, it does not detail the exact types or quantities of ammunition. This information is crucial for understanding the specific military needs being met and for a more granular cost-effectiveness analysis.
How does the awarded price compare to historical pricing for similar ammunition procurements?
Benchmarking the awarded price of $401,956,810 against historical data for similar ammunition contracts is essential. Without this comparison, it's difficult to definitively assess if the price represents good value. Factors like inflation, material costs, and specific technical requirements influence price fluctuations over time.
What are the key performance indicators (KPIs) and quality assurance measures in place for this contract?
Effective oversight requires clearly defined KPIs and robust quality assurance measures. These should include specifications for defect rates, delivery timelines, and adherence to safety standards. The contract's success hinges on the agency's ability to monitor and enforce these measures throughout the contract period.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2701 N ROCKY POINT DR STE 1070, TAMPA, FL, 33607
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business
Financial Breakdown
Contract Ceiling: $401,956,810
Exercised Options: $401,956,810
Current Obligation: $401,956,810
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J22D0007
IDV Type: IDC
Timeline
Start Date: 2023-01-30
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 12:05:00
Last Modified: 2024-05-31
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