DoD awards $60M contract for TRINITROTOLUENE FLAKE to Paramount Enterprises International, Inc

Contract Overview

Contract Amount: $59,999,884 ($60.0M)

Contractor: Paramount Enterprises International, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2027-04-30

Contract Duration: 1,317 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRINITROTOLUENE FLAKE

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19112

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $60.0 million to PARAMOUNT ENTERPRISES INTERNATIONAL, INC. for work described as: TRINITROTOLUENE FLAKE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 1300 days indicates a long-term need for these explosives. 3. Fixed-price contract type may offer cost certainty for the government, but limits flexibility. 4. The North American Industry Classification System (NAICS) code 325920 points to explosives manufacturing. 5. Awarded by the Department of the Army, highlighting a specific defense procurement need. 6. The contract value of nearly $60 million represents a significant investment in this material.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The firm fixed-price structure aims to control costs, but the total value is substantial. Comparing this to similar contracts for explosives manufacturing would require access to proprietary pricing data and specific product quality standards. The raw dollar amount suggests a significant quantity or high-specification product is being procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this specific requirement. While multiple bidders participated, the exact number of potential competitors in the explosives manufacturing sector for this type of product is unknown.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better quality products.

Public Impact

The Department of Defense is the primary beneficiary, securing a supply of essential explosives. Services delivered include the manufacturing and supply of TRINITROTOLUENE FLAKE. The geographic impact is primarily tied to the contractor's manufacturing facilities and the DoD's operational areas. Workforce implications may include employment in specialized manufacturing roles within the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Dependence on a single contractor for a critical defense material.
Ensuring consistent quality and safety standards for explosives manufacturing.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm fixed-price contract provides cost predictability for the government.
Long-term contract duration suggests a stable and ongoing requirement.

Sector Analysis

The explosives manufacturing sector is a critical component of the defense industrial base, supplying essential materials for military operations. This sector is characterized by stringent safety regulations, specialized production capabilities, and often operates under government contracts. The market size for defense-related explosives is substantial, driven by national security needs. This contract fits within the broader category of defense procurement for specialized chemical manufacturing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Paramount Enterprises International, Inc. voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and procurement regulations. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified goods at an agreed-upon price. Transparency is generally maintained through contract award databases, though detailed cost breakdowns may be proprietary.

Related Government Programs

Department of Defense Procurement
Explosives Manufacturing
Ordnance and Ammunition Supply
Chemical Manufacturing Contracts

Risk Flags

Supply Chain Risk
Safety and Handling of Explosives
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $60.0 million to PARAMOUNT ENTERPRISES INTERNATIONAL, INC.. TRINITROTOLUENE FLAKE

Who is the contractor on this award?

The obligated recipient is PARAMOUNT ENTERPRISES INTERNATIONAL, 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 $60.0 million.

What is the period of performance?

Start: 2023-09-21. End: 2027-04-30.

What is the historical spending pattern for TRINITROTOLUENE FLAKE by the Department of Defense?

Analyzing historical spending for TRINITROTOLUENE FLAKE by the Department of Defense requires access to detailed procurement databases. Without specific historical data, it's difficult to establish a trend. However, the current award of nearly $60 million over approximately 3.5 years suggests a consistent and significant demand for this material. Future spending will likely depend on evolving military requirements, geopolitical factors, and the availability of alternative materials or technologies. It is advisable to consult official government spending reports or contract databases for precise historical figures and to identify any fluctuations in procurement volume or value over time.

How does the per-unit cost of TRINITROTOLUENE FLAKE in this contract compare to market rates or similar government contracts?

Determining the per-unit cost benchmark for TRINITROTOLUENE FLAKE in this contract is not possible with the provided data. The contract value is a total award amount, and the quantity of 'TRINITROTOLUENE FLAKE' is not specified. To perform a per-unit cost comparison, one would need to know the exact quantity (e.g., kilograms, tons) being procured under this $59,999,884 contract. Additionally, market rates for specialized explosives can vary significantly based on purity, form (flake, cast, etc.), packaging, and supplier. Comparing to similar government contracts would require access to those specific contract details, including quantities and pricing, which are often not publicly disclosed in detail.

What is Paramount Enterprises International, Inc.'s track record with Department of Defense contracts, particularly for explosives?

Information regarding Paramount Enterprises International, Inc.'s specific track record with Department of Defense contracts, especially for explosives, is not detailed in the provided data. A comprehensive assessment would require reviewing their contract history, including past performance evaluations, any reported issues or disputes, and the types and values of previous awards. Companies operating in the defense sector often have extensive experience, but their specific expertise in explosives manufacturing and their history with the DoD would need to be verified through official contract databases (like SAM.gov or FPDS) and potentially through industry reports or news archives. Their ability to secure a nearly $60 million contract suggests a level of established capability and trust.

What are the key performance indicators (KPIs) expected for this TRINITROTOLUENE FLAKE contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this TRINITROTOLUENE FLAKE contract. Typically, for defense procurement of materials like explosives, KPIs would focus on critical aspects such as on-time delivery, quality adherence (meeting specific chemical composition and physical property standards), safety compliance during manufacturing and transport, and potentially cost control measures. The contract type (Firm Fixed Price) implies that meeting the specified quality and delivery requirements is paramount. Specific KPIs would be detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not included here.

Are there any identified risks associated with the contractor or the nature of this explosives contract?

Potential risks associated with this contract include standard supply chain vulnerabilities, potential delays in production or delivery, and the inherent safety and security risks associated with manufacturing and handling explosives. For the contractor, Paramount Enterprises International, Inc., risks could involve maintaining compliance with stringent safety regulations, managing production capacity to meet demand, and potential fluctuations in raw material costs if not fully mitigated by the fixed-price contract. The government also faces risks related to ensuring consistent quality and preventing diversion or misuse of the material. A thorough risk assessment would typically be conducted during the procurement process.

Industry Classification

NAICS: Manufacturing › Other Chemical Product and Preparation Manufacturing › Explosives 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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1200 INTREPID AVE STE 100, PHILADELPHIA, PA, 19112

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,999,884

Exercised Options: $59,999,884

Current Obligation: $59,999,884

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J21D0003

IDV Type: IDC

Timeline