DoD awards $22.6M for 81/120MM Mortar Propelling Charges to American Ordnance LLC
Contract Overview
Contract Amount: $22,567,146 ($22.6M)
Contractor: American Ordnance LLC
Awarding Agency: Department of Defense
Start Date: 2023-03-23
End Date: 2025-04-30
Contract Duration: 769 days
Daily Burn Rate: $29.3K/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: 81/120MM MORTAR PROPELLING CHARGES
Place of Performance
Location: MIDDLETOWN, DES MOINES County, IOWA, 52638
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $22.6 million to AMERICAN ORDNANCE LLC for work described as: 81/120MM MORTAR PROPELLING CHARGES Key points: 1. Contract awarded to a single vendor, American Ordnance LLC. 2. The contract is for ammunition manufacturing, specifically mortar propelling charges. 3. The award was made under 'Full and Open Competition After Exclusion of Sources'. 4. This indicates a specific reason for excluding other potential sources despite open competition. 5. The total value is $22.6 million over a period of 769 days.
Value Assessment
Rating: fair
The contract value of $22.6 million for mortar propelling charges appears to be within a reasonable range for specialized ammunition. Benchmarking against similar, publicly available contracts for large-caliber ammunition components is difficult due to proprietary pricing and specific technical requirements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting that while competition was sought, only specific sources were eligible or considered. This method can impact price discovery by limiting the pool of bidders, potentially leading to higher prices than a truly open competition.
Taxpayer Impact: Taxpayer funds are being used for essential defense materiel. The limited competition aspect warrants scrutiny to ensure the best possible price was achieved for the taxpayer.
Public Impact
Ensures supply of critical ammunition components for military operations. Supports a specific defense contractor, potentially impacting regional employment. Highlights the complexity of defense procurement, balancing competition with specialized needs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method raises questions about price optimization.
- Lack of transparency in source exclusion criteria.
- Reliance on a single vendor for critical components.
Positive Signals
- Addresses a specific and necessary defense requirement.
- Awarded to a known entity within the defense industrial base.
- Fixed-price contract type helps control costs.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending in this area is driven by military readiness requirements and geopolitical factors. Benchmarks are often classified or highly specific to the munition type.
Small Business Impact
The contract was not awarded to a small business. There is no indication of subcontracting opportunities for small businesses within the provided data.
Oversight & Accountability
The 'Full and Open Competition After Exclusion of Sources' designation suggests a specific justification was provided and likely reviewed by oversight bodies. However, the details of this justification and the subsequent review process are not publicly available.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for higher costs due to limited competition.
- Supply chain risk associated with single-source dependency.
- Lack of transparency regarding source exclusion criteria.
- No explicit small business participation noted.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.6 million to AMERICAN ORDNANCE LLC. 81/120MM MORTAR PROPELLING CHARGES
Who is the contractor on this award?
The obligated recipient is AMERICAN ORDNANCE 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 $22.6 million.
What is the period of performance?
Start: 2023-03-23. End: 2025-04-30.
What specific technical or logistical factors justified the exclusion of other sources in this 'Full and Open Competition'?
The justification for excluding other sources typically relates to unique technical capabilities, specialized manufacturing processes, proprietary technology, or critical security requirements that only a limited number of contractors can meet. For mortar propelling charges, this could involve specific energetic material formulations, precise manufacturing tolerances, or existing integration with existing weapon systems that make switching suppliers impractical or costly.
How does the pricing of these propelling charges compare to industry benchmarks for similar ammunition components, considering the limited competition?
Direct comparison to industry benchmarks is challenging without access to proprietary cost data or classified pricing information. However, the 'limited competition' aspect suggests that the price might be higher than if a broader range of suppliers were involved. The fixed-price contract type provides some cost control, but the absence of robust competition could mean taxpayers are not receiving the absolute lowest possible price.
What is the long-term strategic impact of relying on a single supplier for these critical ammunition components?
Long-term reliance on a single supplier for critical components like mortar propelling charges can create supply chain vulnerabilities. If the sole supplier faces production issues, financial instability, or geopolitical disruptions, the military's ability to procure these essential items could be severely impacted. This necessitates careful monitoring and potentially developing alternative sources or surge capacity plans.
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: 17575 HIGHWAY 79, MIDDLETOWN, IA, 52638
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $22,567,146
Exercised Options: $22,567,146
Current Obligation: $22,567,146
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J18D0058
IDV Type: IDC
Timeline
Start Date: 2023-03-23
Current End Date: 2025-04-30
Potential End Date: 2025-04-30 00:00:00
Last Modified: 2026-01-21
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