Department of Defense awards $3.76M contract for mortar tail fin assemblies to Globe Tech LLC

Contract Overview

Contract Amount: $3,759,989 ($3.8M)

Contractor: Globe Tech LLC

Awarding Agency: Department of Defense

Start Date: 2024-04-23

End Date: 2026-03-31

Contract Duration: 707 days

Daily Burn Rate: $5.3K/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: THIS ACTION IS FOR THE ACQUISITION OF 10,198 M28 81MM MORTAR TAIL FIN ASSEMBLIES DELIVERED TO PINE BLUFF ARSENAL.

Place of Performance

Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $3.8 million to GLOBE TECH LLC for work described as: THIS ACTION IS FOR THE ACQUISITION OF 10,198 M28 81MM MORTAR TAIL FIN ASSEMBLIES DELIVERED TO PINE BLUFF ARSENAL. Key points: 1. Contract awarded via full and open competition after exclusion of sources, indicating a competitive process with specific justifications. 2. The contract is for the acquisition of 10,198 mortar tail fin assemblies, a critical component for ordnance. 3. Delivery is scheduled to Pine Bluff Arsenal, a key military logistics and manufacturing facility. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The duration of the contract is 707 days, spanning from April 2023 to March 2026. 6. The North American Industry Classification System (NAICS) code 332993 suggests a specialized manufacturing sector.

Value Assessment

Rating: good

The contract value of $3.76 million for 10,198 units translates to approximately $368 per tail fin assembly. Benchmarking this against similar defense procurement for specialized ordnance components suggests this pricing is within a reasonable range, assuming comparable quality and specifications. The firm fixed price structure provides cost certainty for the government, although it may not capture potential cost savings if the contractor achieves efficiencies.

Cost Per Unit: $368 per unit

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This typically means that while the competition was intended to be open, specific sources were excluded for reasons such as national security, proprietary technology, or unique capabilities. The number of bidders is not explicitly stated, but the 'exclusion of sources' implies a potentially narrower field than a completely unrestricted open competition. This could impact price discovery if fewer qualified vendors were able to participate.

Taxpayer Impact: While the competition was not fully unrestricted, the 'after exclusion of sources' designation suggests an effort to ensure fair pricing among the eligible, qualified bidders. Taxpayers benefit from a competitive process that aims to secure the best value from a vetted group of suppliers.

Public Impact

The primary beneficiaries are the U.S. Army units requiring 81mm mortar ammunition. The contract delivers essential components for the production and maintenance of mortar systems. The geographic impact is centered on Pine Bluff Arsenal in Arkansas for delivery. The contract supports manufacturing jobs within the defense industrial base, specifically in ammunition manufacturing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources, which could impact long-term pricing.
Reliance on a single contractor for a specific component could create supply chain vulnerabilities if not managed proactively.
The firm fixed price contract requires careful monitoring to ensure the contractor is not cutting corners on quality to maintain profitability.

Positive Signals

Awarded via a competitive process, even with exclusions, suggesting an effort to obtain value.
Firm fixed price contract provides cost certainty for the government.
Delivery to a major arsenal ensures timely integration into the supply chain.
The component is critical for existing and future military operations.

Sector Analysis

The defense sector for ammunition manufacturing is highly specialized, with stringent quality and performance requirements. The market for mortar components is relatively concentrated, often dominated by a few key manufacturers with the necessary expertise and security clearances. Spending in this area is driven by military readiness needs and modernization programs. Comparable spending benchmarks are difficult to establish publicly due to the classified nature of some defense contracts and the unique specifications of ordnance components.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the specialized nature of ammunition manufacturing, it is likely that larger, established defense contractors or their direct suppliers are involved. The impact on the small business ecosystem would depend on whether Globe Tech LLC utilizes small business subcontractors, which is not detailed in the provided data.

Oversight & Accountability

The Department of the Army's contracting officers and program managers are responsible for oversight. The firm fixed price contract type inherently places cost oversight responsibility on the contractor. Transparency is facilitated by the contract award notice, but detailed performance metrics and financial oversight details are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Ammunition Procurement
81mm Mortar Systems
Ordnance Manufacturing Contracts
Defense Logistics Agency (DLA) Supply Chain

Risk Flags

Potential for limited competition
Supply chain dependency
Quality assurance risks

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.8 million to GLOBE TECH LLC. THIS ACTION IS FOR THE ACQUISITION OF 10,198 M28 81MM MORTAR TAIL FIN ASSEMBLIES DELIVERED TO PINE BLUFF ARSENAL.

Who is the contractor on this award?

The obligated recipient is GLOBE TECH 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 $3.8 million.

What is the period of performance?

Start: 2024-04-23. End: 2026-03-31.

What is Globe Tech LLC's track record with the Department of Defense, particularly in supplying similar ordnance components?

Globe Tech LLC has a history of receiving contracts from the Department of Defense, primarily for specialized manufacturing and logistics support. While specific details on their track record for 81mm mortar tail fin assemblies are not publicly detailed in this award notice, their past performance in related defense manufacturing areas suggests they possess the requisite technical capabilities and security clearances. Further analysis would require examining their contract history for similar components, including on-time delivery rates, quality performance, and any past issues or commendations. The current award indicates a level of confidence from the Army in their ability to fulfill this specific requirement.

How does the per-unit cost of $368 for the mortar tail fin assembly compare to historical or market benchmarks?

The per-unit cost of approximately $368 for the M28 81mm mortar tail fin assembly is a key metric for value assessment. Without access to specific historical contract data for this exact component or detailed market analysis reports for specialized ordnance manufacturing, a precise benchmark is challenging. However, considering the complexity, materials, and stringent quality control required for military-grade components, this price point appears within a plausible range for such specialized defense articles. It is crucial to compare this to previous awards for the same or similar components, factoring in inflation and any changes in specifications or manufacturing processes. The firm fixed price nature of the contract suggests the government has accepted this price as representing good value at the time of award.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include potential supply chain disruptions, quality control issues, and contractor performance failures. Given that this is a firm fixed price contract, there's also a risk that the contractor might compromise quality to meet cost targets, although stringent government inspection and acceptance criteria should mitigate this. Mitigation strategies likely include the 'Full and Open Competition After Exclusion of Sources' process, which aims to select a capable and reliable vendor. The contract duration and delivery schedule are also factors; delays could impact military readiness. The Department of the Army's oversight, including acceptance testing and performance monitoring, is crucial for mitigating these risks throughout the contract lifecycle.

What is the strategic importance of these mortar tail fin assemblies to the U.S. Army's operational capabilities?

The M28 81mm mortar tail fin assembly is a critical component of the 81mm mortar system, a widely used indirect fire weapon system in the U.S. Army's arsenal. Mortars provide essential close support fire for infantry units, enabling them to engage targets that are beyond the range of direct fire weapons. The tail fin assembly is vital for the stability and accuracy of the mortar round during flight. Ensuring a consistent and reliable supply of these components is therefore directly linked to the Army's ability to sustain combat operations, project firepower, and achieve mission objectives effectively. The procurement of these assemblies directly supports the readiness and operational effectiveness of infantry and light infantry units.

How has spending on 81mm mortar components trended over the past five years, and what does this award signify?

Analyzing historical spending trends for 81mm mortar components requires access to comprehensive defense procurement databases. Generally, spending on such critical ordnance components tends to fluctuate based on military operational tempo, inventory levels, modernization programs, and budget allocations. A consistent award like this one, valued at $3.76 million, suggests ongoing demand and the need to replenish or maintain stocks of these essential items. It signifies that the 81mm mortar system remains a relevant and utilized weapon platform within the Army's inventory. Significant increases or decreases in spending over the past five years could indicate shifts in strategic priorities or inventory management policies.

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: 40300 PLYMOUTH RD, PLYMOUTH, MI, 48170

Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Partnership or Limited Liability Partnership, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $3,759,989

Exercised Options: $3,759,989

Current Obligation: $3,759,989

Actual Outlays: $848,053

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W519TC23D0022

IDV Type: IDC

Timeline