Army Awards $434M for Small Arms Ammunition Production to Olin Winchester LLC
Contract Overview
Contract Amount: $434,099,315 ($434.1M)
Contractor: Olin Winchester LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2027-05-15
Contract Duration: 1,051 days
Daily Burn Rate: $413.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: AWARD FY24 PRODUCTION ORDERS.
Place of Performance
Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056
State: Missouri Government Spending
Plain-Language Summary
Department of Defense obligated $434.1 million to OLIN WINCHESTER LLC for work described as: AWARD FY24 PRODUCTION ORDERS. Key points: 1. Significant award for essential military supplies. 2. Olin Winchester LLC is a major player in ammunition manufacturing. 3. Potential for price fluctuations due to economic price adjustment clause. 4. Spending falls within the Small Arms Ammunition Manufacturing sector.
Value Assessment
Rating: good
The award amount of $434M for ammunition production appears substantial. Benchmarking against similar large-scale defense contracts for munitions would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method might impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are being used for a critical defense procurement. The economic price adjustment clause warrants monitoring to ensure cost efficiency.
Public Impact
Ensures continued supply of critical ammunition for military operations. Supports a key defense industrial base manufacturer. Potential impact on market availability and pricing of small arms ammunition.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Economic price adjustment clause could lead to cost overruns.
- Limited competition may not yield the best possible price.
Positive Signals
- Secures essential materiel for national defense.
- Award to an established, experienced manufacturer.
Sector Analysis
This award is within the Small Arms Ammunition Manufacturing sector, a critical component of defense logistics. Spending benchmarks for similar large-scale ammunition contracts would be relevant for comparison.
Small Business Impact
The data indicates this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small businesses were subcontracting opportunities within this award.
Oversight & Accountability
The award is a delivery order under a larger contract, suggesting a structured procurement process. Oversight will be crucial to manage the economic price adjustment and ensure timely delivery.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Economic Price Adjustment (EPA) clause introduces cost uncertainty.
- Limited competition may not have secured the lowest possible price.
- Dependence on a single source for a critical defense commodity.
- Long contract duration (through 2027) increases exposure to market volatility.
Tags
small-arms-ammunition-manufacturing, department-of-defense, mo, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $434.1 million to OLIN WINCHESTER LLC. AWARD FY24 PRODUCTION ORDERS.
Who is the contractor on this award?
The obligated recipient is OLIN WINCHESTER 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 $434.1 million.
What is the period of performance?
Start: 2024-06-28. End: 2027-05-15.
What is the historical pricing trend for Olin Winchester LLC's ammunition under similar economic price adjustment clauses?
Analyzing historical pricing data for Olin Winchester LLC under contracts with economic price adjustment (EPA) clauses is crucial. This would reveal how effectively the EPA has managed cost fluctuations in the past and whether it has led to significant price increases beyond initial projections. Understanding this trend helps assess the long-term value and potential taxpayer impact of the current award.
What specific factors led to the exclusion of other sources in this 'full and open competition after exclusion of sources' award?
The exclusion of sources in this procurement method typically stems from specific technical requirements, existing infrastructure compatibility, or unique manufacturing capabilities that only certain contractors possess. Understanding these specific factors is vital for assessing whether the exclusion was justified and if it truly limited competition unnecessarily, potentially impacting the final price achieved for the taxpayer.
How does the unit cost of this ammunition compare to industry benchmarks for similar caliber and quality?
Benchmarking the per-unit cost of the ammunition against industry standards for comparable caliber, quality, and quantity is essential for evaluating cost-effectiveness. If the unit cost is significantly higher than benchmarks, it could indicate inefficiencies in the procurement process, the pricing structure, or the chosen contractor's cost structure, raising concerns about value for taxpayer money.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Olin Corporation
Address: 25201 E 78 HWY, INDEPENDENCE, MO, 64056
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $434,099,315
Exercised Options: $434,099,315
Current Obligation: $434,099,315
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W52P1J19D0085
IDV Type: IDC
Timeline
Start Date: 2024-06-28
Current End Date: 2027-05-15
Potential End Date: 2027-05-15 12:05:00
Last Modified: 2025-08-26
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