Department of Defense Awards $17.2M Contract for Trinitrotoluene Flake (TNT) to High Noon Unlimited Inc

Contract Overview

Contract Amount: $17,249,671 ($17.2M)

Contractor: High Noon Unlimited Inc

Awarding Agency: Department of Defense

Start Date: 2023-12-22

End Date: 2026-06-03

Contract Duration: 894 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRINITROTOLUENE FLAKE (TNT)

Place of Performance

Location: HOLIDAY, PASCO County, FLORIDA, 34691

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $17.2 million to HIGH NOON UNLIMITED INC for work described as: TRINITROTOLUENE FLAKE (TNT) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract, indicating ongoing program needs. 3. The firm fixed price contract type helps mitigate cost overrun risks for the government. 4. The contract duration of 894 days (approx. 2.5 years) suggests a medium-term requirement. 5. The North American Industry Classification System (NAICS) code 325920 points to explosives manufacturing. 6. The awardee, HIGH NOON UNLIMITED INC., is positioned within the defense industrial base for explosives.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or detailed cost breakdowns. The award amount of $17.2 million over approximately 2.5 years for specialized explosives suggests a significant investment. However, without comparable contract data for similar quantities and specifications of TRINITROTOLUENE FLAKE (TNT), a definitive value-for-money assessment is difficult. The firm fixed price structure provides some cost certainty, but the overall efficiency and cost-effectiveness relative to market alternatives or previous procurements remain unclear.

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 two bids (no: 2) suggests a degree of competition, though the exact number of potential bidders in this specialized market is unknown. A limited number of bidders can sometimes lead to less competitive pricing, but the firm fixed price structure aims to contain costs regardless of the number of offers received.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can drive down prices and ensure the government receives the best value. Even with only two bids, the competitive process helps prevent price gouging.

Public Impact

The primary beneficiary is the Department of the Army, which will receive the TRINITROTOLUENE FLAKE (TNT) for its operational needs. The services delivered involve the manufacturing and supply of a critical explosive material. The contract is geographically focused on FLORIDA (st: FL), indicating the location of performance or delivery. The contract supports the defense industrial base, potentially impacting workforce employment in specialized manufacturing sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition in specialized explosives manufacturing.
Dependence on a single awardee for a critical defense material.
Geographic concentration in Florida could pose supply chain risks if disruptions occur.

Positive Signals

Awarded through full and open competition, maximizing potential bidder pool.
Firm fixed price contract type provides cost certainty.
Contract duration allows for stable supply planning.

Sector Analysis

The defense sector, particularly the manufacturing of explosives and ordnance, is a highly specialized and regulated industry. This contract falls under the broader category of defense industrial base support, focusing on the production of materials essential for military operations. The market for such specialized chemicals is often characterized by a limited number of qualified manufacturers due to stringent safety, security, and technical requirements. Comparable spending benchmarks are difficult to establish publicly due to the sensitive nature of the products and the proprietary information of manufacturers.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The primary focus is on large-scale industrial production, likely involving established defense contractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are embedded in the firm fixed price contract terms, requiring delivery of specified goods. Transparency is generally limited for defense contracts involving sensitive materials, but reporting requirements within the DoD would ensure internal oversight. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Ordnance Manufacturing
Explosives Production
Defense Industrial Base Contracts
Department of the Army Procurements
Specialty Chemical Manufacturing

Risk Flags

Specialized Material Procurement
Defense Industrial Base Reliance
Geographic Concentration Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to HIGH NOON UNLIMITED INC. TRINITROTOLUENE FLAKE (TNT)

Who is the contractor on this award?

The obligated recipient is HIGH NOON UNLIMITED 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 $17.2 million.

What is the period of performance?

Start: 2023-12-22. End: 2026-06-03.

What is the track record of HIGH NOON UNLIMITED INC. in supplying defense materials?

Information regarding the specific track record of HIGH NOON UNLIMITED INC. in supplying defense materials, particularly TRINITROTOLUENE FLAKE (TNT), is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations, delivery history, and any documented issues or successes on previous government contracts. Without this specific data, it is difficult to ascertain their reliability and experience in fulfilling such critical requirements. Further investigation into federal procurement databases and contractor performance systems would be necessary to build a complete picture of their capabilities and history.

How does the awarded amount compare to similar contracts for TRINITROTOLUENE FLAKE (TNT)?

Direct comparison of the $17.2 million award for TRINITROTOLUENE FLAKE (TNT) to similar contracts is challenging without access to detailed historical procurement data for this specific item. The value is influenced by quantity, purity, delivery timelines, and the specific requirements of the end-user. Given that this is a specialized explosive material, the market is likely limited, and pricing can vary significantly. The firm fixed price nature of this contract suggests a defined cost ceiling. To benchmark effectively, one would need to analyze contracts with comparable specifications, quantities, and contract durations awarded over a similar period, considering factors like inflation and market demand.

What are the primary risks associated with this contract?

The primary risks associated with this contract include potential supply chain disruptions, as the manufacturing is concentrated in Florida. There's also a risk related to the specialized nature of the product, where a limited number of qualified suppliers might exist, potentially impacting future competition and pricing. Furthermore, any unforeseen technical challenges in manufacturing or quality control could lead to delays or non-compliance. The government also faces the risk of the contractor not meeting performance standards, although the firm fixed price contract aims to mitigate financial risks for the government in such scenarios.

How effective is the firm fixed price contract type in managing costs for this specific procurement?

The firm fixed price (FFP) contract type is generally effective in managing costs for procurements where the scope of work is well-defined and risks are understood. For TRINITROTOLUENE FLAKE (TNT) manufacturing, an FFP contract provides the government with cost certainty, as the price is set at the outset. This shifts the risk of cost overruns to the contractor. However, the effectiveness hinges on the initial price being fair and reasonable, which requires thorough market research and cost analysis by the government prior to award. If the initial price is set too high, the government may overpay, even with an FFP structure.

What are the historical spending patterns for explosives manufacturing by the Department of Defense?

Historical spending patterns for explosives manufacturing by the Department of Defense are substantial, reflecting the ongoing need for munitions and related materials. While specific figures for TRINITROTOLUENE FLAKE (TNT) are not detailed here, the DoD consistently allocates significant portions of its budget to defense industrial base support, including the production of energetic materials. Spending in this category can fluctuate based on geopolitical conditions, operational tempo, and modernization programs. Analyzing broader DoD spending trends on ordnance and explosives would reveal a consistent demand, though specific contract values like this $17.2 million award represent individual procurements within that larger spending framework.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4339 BUENA VISTA LN, HOLIDAY, FL, 34691

Business Categories: Category Business, Corporate Entity Not Tax Exempt, HUBZone Firm, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $17,249,671

Exercised Options: $17,249,671

Current Obligation: $17,249,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J21D0002

IDV Type: IDC

Timeline