DoD Awards $8.8M for X-Ray System to Support Artillery Complex at Iowa Army Ammunition Plant
Contract Overview
Contract Amount: $8,816,866 ($8.8M)
Contractor: American Ordnance LLC
Awarding Agency: Department of Defense
Start Date: 2023-07-19
End Date: 2026-05-15
Contract Duration: 1,031 days
Daily Burn Rate: $8.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Defense
Official Description: PROCUREMENT OF X-RAY SYSTEM FOR LARGE CALIBER AMMUNITION IN SUPPORT OF THE FUTURE ARTILLERY COMPLEX AT IOWA ARMY AMMUNITION PLANT.
Place of Performance
Location: MIDDLETOWN, DES MOINES County, IOWA, 52638
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $8.8 million to AMERICAN ORDNANCE LLC for work described as: PROCUREMENT OF X-RAY SYSTEM FOR LARGE CALIBER AMMUNITION IN SUPPORT OF THE FUTURE ARTILLERY COMPLEX AT IOWA ARMY AMMUNITION PLANT. Key points: 1. The procurement is for a specialized X-ray system crucial for quality control of large caliber ammunition. 2. American Ordnance LLC, the contractor, is a key player in ordnance manufacturing. 3. The contract value is significant, reflecting the specialized nature of the equipment and its strategic importance. 4. This spending falls under facilities support services, indicating a focus on infrastructure for defense production.
Value Assessment
Rating: good
The contract value of $8.8M appears reasonable for a specialized X-ray system for large caliber ammunition, considering the advanced technology and quality assurance requirements. Benchmarking against similar specialized industrial equipment procurements 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 that likely led to a fair market price. The award type is a delivery order, indicating it's part of a larger contract vehicle.
Taxpayer Impact: Taxpayer funds are being used to enhance the quality control capabilities of critical defense manufacturing infrastructure, ensuring the reliability of artillery ammunition.
Public Impact
Enhances quality control for critical artillery ammunition production. Supports the modernization of defense manufacturing capabilities at the Iowa Army Ammunition Plant. Ensures the readiness and effectiveness of military artillery systems. Invests in advanced technology for national defense.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Warning Flags
- Potential for cost overruns if system integration proves more complex than anticipated.
- Dependence on a single supplier for critical components or maintenance.
Positive Signals
- Strategic investment in defense industrial base modernization.
- Competitive award process likely secured favorable pricing.
- Direct support for critical munitions production.
Sector Analysis
This procurement falls within the defense manufacturing and industrial equipment sector. Spending benchmarks for specialized quality assurance systems in this area can vary widely based on technological sophistication and application, but this value appears aligned with significant capital investments.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The primary contractor, American Ordnance LLC, is a large entity, suggesting this contract was not directly awarded to small businesses.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for overseeing this procurement. Standard contract management and oversight procedures would apply to ensure delivery and performance requirements are met.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Specialized technology procurement
- Critical defense infrastructure support
- Quality assurance for munitions
- Full and open competition award
- Long-term delivery order
Tags
facilities-support-services, department-of-defense, ia, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.8 million to AMERICAN ORDNANCE LLC. PROCUREMENT OF X-RAY SYSTEM FOR LARGE CALIBER AMMUNITION IN SUPPORT OF THE FUTURE ARTILLERY COMPLEX AT IOWA ARMY AMMUNITION PLANT.
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 $8.8 million.
What is the period of performance?
Start: 2023-07-19. End: 2026-05-15.
What is the expected lifespan and maintenance cost of this X-ray system?
The expected lifespan and associated maintenance costs for this specialized X-ray system are critical factors for long-term value assessment. While the contract duration is over 1000 days, understanding the total cost of ownership beyond the initial procurement is essential for budgeting and operational planning. Further details on warranty, service agreements, and projected upkeep expenses would be beneficial.
How does this X-ray system compare to alternative quality control technologies for large caliber ammunition?
The selection of this specific X-ray system implies it offers superior capabilities or cost-effectiveness compared to alternative quality control technologies for large caliber ammunition. Understanding the technical specifications and performance metrics that differentiate it from other methods, such as ultrasonic testing or visual inspection, would clarify its value proposition and ensure it represents the best available technology for the intended purpose.
What are the specific risks associated with the integration and operationalization of this new X-ray system within the existing artillery complex?
Integration risks could include compatibility issues with existing infrastructure, the need for specialized training for personnel, and potential delays in deployment. Operational risks might involve system downtime, calibration challenges, or unforeseen maintenance requirements. A thorough risk mitigation plan addressing these potential challenges is crucial for ensuring the system's effective and timely contribution to ammunition production.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Address: 17575 HIGHWAY 79, MIDDLETOWN, IA, 52638
Business Categories: Category Business, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $8,816,866
Exercised Options: $8,816,866
Current Obligation: $8,816,866
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $7,609,804
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W52P1J09G0001
IDV Type: IDC
Timeline
Start Date: 2023-07-19
Current End Date: 2026-05-15
Potential End Date: 2026-05-15 12:05:00
Last Modified: 2025-12-29
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