DoD awards $334M for Ammunition Manufacturing, with 2 orders placed
Contract Overview
Contract Amount: $334,199,060 ($334.2M)
Contractor: Global Military Products Inc
Awarding Agency: Department of Defense
Start Date: 2023-04-17
End Date: 2026-12-31
Contract Duration: 1,354 days
Daily Burn Rate: $246.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: PURCHASE OF AMMUNITION
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $334.2 million to GLOBAL MILITARY PRODUCTS INC for work described as: PURCHASE OF AMMUNITION Key points: 1. Significant contract value of $334 million for ammunition. 2. Global Military Products Inc. is the sole awardee. 3. Contract spans over 3 years, indicating long-term need. 4. Ammunition manufacturing falls under a critical defense sector.
Value Assessment
Rating: good
The contract value of $334,199,060 for ammunition manufacturing appears reasonable given the sector and duration. Benchmarking against similar large-scale defense procurement contracts 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. However, with only two delivery orders issued, the extent of actual competition realized is unclear.
Taxpayer Impact: Taxpayer funds are being utilized for essential defense materiel, with the expectation of competitive pricing driving value.
Public Impact
Ensures supply of critical ammunition for military operations. Supports defense industrial base and manufacturing capabilities. Potential for job creation within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of delivery orders issued.
- Sole awardee may limit future competitive pressure.
Positive Signals
- Awarded under full and open competition.
- Long-term contract ensures supply chain stability.
Sector Analysis
This contract falls within the defense industrial sector, specifically focusing on ammunition manufacturing. Spending in this area is crucial for national security and is often subject to specialized procurement regulations and market dynamics.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. Analysis of subcontracting opportunities for small businesses would be necessary to assess their participation in this contract.
Oversight & Accountability
The Department of the Army is the contracting agency, responsible for oversight. The contract's duration and value suggest regular reporting and performance monitoring are in place.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for price increases due to limited competition.
- Dependence on a single contractor for critical supplies.
- Uncertainty regarding the realization of full competition benefits.
- Long contract duration may not adapt quickly to changing needs.
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 $334.2 million to GLOBAL MILITARY PRODUCTS INC. PURCHASE OF AMMUNITION
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 $334.2 million.
What is the period of performance?
Start: 2023-04-17. End: 2026-12-31.
What is the typical profit margin for ammunition manufacturers in the defense sector?
Profit margins for ammunition manufacturers can vary based on production volume, contract terms, and market competition. Generally, defense contracts aim for a reasonable profit, often in the range of 5-15%, but this can be influenced by fixed-price structures and overhead costs. Specific data for Global Military Products Inc. would require access to their financial reports or more detailed contract pricing breakdowns.
What are the primary risks associated with a sole awardee for ammunition manufacturing?
A primary risk with a sole awardee is the potential for reduced competition and price escalation in future procurements or modifications. It can also lead to supply chain vulnerabilities if the sole provider faces production issues or financial instability. Dependence on a single source may also limit innovation and responsiveness to evolving military requirements.
How effectively does this contract ensure the long-term availability of critical ammunition types?
The contract's duration (ending 2026) and significant value suggest a strong commitment to ensuring the availability of specific ammunition types. However, effectiveness hinges on the contractor's performance, adherence to delivery schedules, and the ability to scale production if demand increases. Continuous monitoring of production capacity and inventory levels is crucial.
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
Solicitation ID: W519TC23RNS08
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: $334,199,060
Exercised Options: $334,199,060
Current Obligation: $334,199,060
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: 2023-04-17
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 12:12:00
Last Modified: 2026-01-07
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