DoD awards $33.5M for TNT flake, with 2 bids received under full and open competition

Contract Overview

Contract Amount: $33,498,226 ($33.5M)

Contractor: High Noon Unlimited Inc

Awarding Agency: Department of Defense

Start Date: 2024-07-22

End Date: 2026-08-04

Contract Duration: 743 days

Daily Burn Rate: $45.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURCHASE OF TRINITROTOLUENE FLAKE (TNT)

Place of Performance

Location: HOLIDAY, PASCO County, FLORIDA, 34691

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $33.5 million to HIGH NOON UNLIMITED INC for work described as: PURCHASE OF TRINITROTOLUENE FLAKE (TNT) Key points: 1. Value appears reasonable given the specialized nature of explosives manufacturing. 2. Competition was robust, suggesting fair market pricing was likely achieved. 3. Contract performance duration is substantial, indicating a long-term need. 4. This award falls within the broader category of defense logistics and munitions. 5. The fixed-price contract type shifts risk to the contractor. 6. Geographic concentration in Florida for delivery.

Value Assessment

Rating: good

The contract value of $33.5 million for Trinitrotoluene (TNT) flake is within a reasonable range for specialized defense materials. Benchmarking against similar explosives procurement is challenging due to limited public data, but the fixed-price structure suggests the government secured predictable costs. The award amount is below the reported benchmark of $45,085, indicating potential cost efficiencies or a smaller quantity than the benchmark implies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bids received, the competition level suggests a moderate degree of market interest for this specialized product. While two bidders provide a basis for price comparison, a higher number of bidders could have potentially driven prices lower.

Taxpayer Impact: Full and open competition with two bidders generally ensures a fair price for taxpayers, though more bidders could have potentially yielded greater savings.

Public Impact

The Department of Defense benefits from a secure supply of essential explosives. This contract ensures the availability of Trinitrotoluene flake for military operations and training. Delivery is concentrated in Florida, impacting regional logistics and storage. The contract supports the defense industrial base, potentially including specialized manufacturing jobs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for supply chain disruptions impacting delivery timelines.
Geopolitical events could influence demand and pricing for explosives.
Ensuring contractor compliance with stringent safety and environmental regulations.

Positive Signals

Fixed-price contract limits cost overrun risk for the government.
Full and open competition suggests a competitive pricing environment.
Contract duration provides supply stability for a critical material.

Sector Analysis

This contract falls within the explosives manufacturing sector, a niche but critical part of the defense industrial base. The market for military-grade explosives is typically characterized by a limited number of specialized suppliers due to high barriers to entry, including technical expertise, safety regulations, and capital investment. Spending in this area is directly tied to defense readiness and procurement cycles.

Small Business Impact

The contract does not indicate any specific small business set-asides. Given the specialized nature of explosives manufacturing, it is less common for small businesses to be primary contractors for such materials, though they may participate as subcontractors. Further analysis would be needed to determine subcontracting opportunities for small businesses within the performance of this contract.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army contracting and program management offices. Accountability is established through the firm-fixed-price contract terms, requiring delivery of specified materials. Transparency is facilitated by the contract award notice, though detailed performance metrics are not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Munitions Procurement
Explosives and Chemical Manufacturing
Army Ammunition Production
Defense Logistics Agency Contracts

Risk Flags

Supply Chain Risk
Contractor Performance Risk
Regulatory Compliance Risk
Geopolitical Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to HIGH NOON UNLIMITED INC. PURCHASE OF 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 $33.5 million.

What is the period of performance?

Start: 2024-07-22. End: 2026-08-04.

What is the historical spending trend for Trinitrotoluene (TNT) flake by the Department of Defense?

Analyzing historical spending for Trinitrotoluene (TNT) flake specifically is challenging due to the specialized nature of the product and the way defense contracts are often categorized. Publicly available data often aggregates spending across broader categories like 'Explosives Manufacturing' or 'Ordnance and Accessories.' However, general trends in defense spending on munitions and explosives are influenced by geopolitical events, military readiness levels, and strategic modernization programs. Significant increases in spending often correlate with periods of heightened global tension or active military engagements. Without specific line-item data for TNT flake over multiple years, it's difficult to establish a precise historical trend, but it's reasonable to assume spending fluctuates based on operational needs and inventory management cycles within the Department of Defense.

How does the awarded price per unit compare to market rates for similar explosives?

Determining a precise per-unit cost for Trinitrotoluene (TNT) flake is difficult without knowing the exact quantity purchased under this $33.5 million contract. The contract award notice provides a benchmark value of $45,085, but it's unclear if this represents a total contract value, a specific delivery order value, or a unit price multiplied by a quantity. If the $45,085 represents a benchmark for a certain quantity or type of explosive, and this contract's total value is $33.5 million, it suggests a significant volume or a different pricing structure. Direct comparison to market rates is further complicated by the fact that military-grade explosives are not a standard commercial commodity. Prices are heavily influenced by stringent quality control, safety certifications, and specialized manufacturing processes required for defense applications, which typically command a premium over less regulated industrial chemicals.

What are the primary risks associated with this contract and the contractor's performance?

The primary risks associated with this contract involve supply chain reliability and contractor performance. For Trinitrotoluene (TNT) flake, a critical component for munitions, any disruption in the supply chain—whether due to raw material shortages, transportation issues, or geopolitical instability—could impact delivery schedules and national security readiness. The contractor, HIGH NOON UNLIMITED INC, faces risks related to maintaining consistent quality control, adhering to strict safety and environmental regulations inherent in explosives manufacturing, and managing production capacity to meet demand. Furthermore, the long duration of the contract (743 days) increases the potential for unforeseen challenges. The government's risk is mitigated by the firm-fixed-price contract type, which caps cost overruns, but performance failures could still necessitate emergency procurements at potentially higher costs.

What is the track record of HIGH NOON UNLIMITED INC in fulfilling defense contracts, particularly for explosives?

Information regarding the specific track record of HIGH NOON UNLIMITED INC in fulfilling defense contracts, especially for specialized items like Trinitrotoluene (TNT) flake, is not detailed in the provided award data. A comprehensive assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of contract disputes or terminations. Without this detailed performance history, it's difficult to definitively assess their reliability and capability in producing and delivering sensitive materials like explosives. The award of this significant contract suggests they have met initial vetting criteria, but ongoing monitoring of their performance throughout the contract duration will be crucial.

How does the competition level (2 bidders) impact the government's ability to secure favorable pricing?

A competition level involving two bidders, as seen in this award for Trinitrotoluene (TNT) flake, provides a basis for price comparison but may not represent the most optimal scenario for securing the lowest possible price. While two bidders ensure some level of market vetting and prevent a sole-source situation, a more robust competition with three or more bidders typically exerts greater downward pressure on prices. With only two offers, the government is reliant on the competitiveness between those two specific entities. If the market for this specialized explosive is inherently limited, two bidders might represent the majority of available suppliers. Therefore, while the price is likely fair, there might be potential for further savings if a broader range of suppliers could have been engaged.

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: $33,498,226

Exercised Options: $33,498,226

Current Obligation: $33,498,226

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