DoD Awards $17.8M for 60/81MM Mortar Propelling Charges to American Ordnance LLC
Contract Overview
Contract Amount: $17,845,765 ($17.8M)
Contractor: American Ordnance LLC
Awarding Agency: Department of Defense
Start Date: 2025-06-17
End Date: 2027-05-31
Contract Duration: 713 days
Daily Burn Rate: $25.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 60MM/81MM MORTAR PROPELLING CHARGE PRODUCTION
Place of Performance
Location: MIDDLETOWN, DES MOINES County, IOWA, 52638
State: Iowa Government Spending
Plain-Language Summary
Department of Defense obligated $17.8 million to AMERICAN ORDNANCE LLC for work described as: 60MM/81MM MORTAR PROPELLING CHARGE PRODUCTION Key points: 1. Contract awarded for essential mortar components, supporting Army readiness. 2. American Ordnance LLC, a key defense contractor, secured the award. 3. Potential risks include supply chain disruptions and production capacity. 4. Spending falls within the Ammunition Manufacturing sector.
Value Assessment
Rating: good
The award amount of $17.8M for mortar propelling charges appears reasonable given the duration and nature of the product. Benchmarking against similar ammunition production contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The use of Firm Fixed Price contract type further enhances price certainty.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical defense materiel.
Public Impact
Ensures continued supply of critical ammunition components for military operations. Supports domestic manufacturing capabilities for defense-related products. Impacts readiness and operational effectiveness of Army units relying on mortar systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Reliance on a single supplier for specific components could pose a risk.
- Potential for cost overruns if raw material prices fluctuate significantly.
- Production timelines may be impacted by unforeseen manufacturing challenges.
Positive Signals
- Awarded through full and open competition, indicating market responsiveness.
- Firm Fixed Price contract provides cost certainty.
- Supports established domestic defense industrial base.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for similar production runs would provide further context on cost-effectiveness.
Small Business Impact
The data does not indicate specific subcontracting opportunities for small businesses on this award. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army's contracting process, including full and open competition, provides a framework for oversight. Monitoring delivery schedules and quality control will be key accountability measures.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Supply chain vulnerability for raw materials.
- Potential for production delays.
- Dependence on a single manufacturer for critical components.
- Fluctuations in commodity prices impacting material costs.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ia, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.8 million to AMERICAN ORDNANCE LLC. 60MM/81MM MORTAR PROPELLING CHARGE PRODUCTION
Who is the contractor on this award?
The obligated recipient is AMERICAN ORDNANCE 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 $17.8 million.
What is the period of performance?
Start: 2025-06-17. End: 2027-05-31.
What is the historical cost performance of American Ordnance LLC on similar DoD contracts?
Historical cost performance data for American Ordnance LLC on similar DoD contracts is crucial for assessing the value proposition of this award. Analyzing past contract execution, including adherence to budget and delivery timelines, can reveal trends in efficiency and cost control. This information helps determine if the current $17.8M award is competitive and reflects a fair price for the required goods and services.
What are the primary risks associated with the supply chain for the raw materials needed for these propelling charges?
The primary risks associated with the supply chain for propelling charge raw materials often include geopolitical instability affecting sourcing, potential shortages of key chemical components, and price volatility. Dependence on a limited number of suppliers or specific geographic regions can exacerbate these risks. Proactive supply chain management, including diversification of sources and strategic stockpiling, is essential to mitigate potential disruptions and ensure consistent production.
How effectively does this contract contribute to the Army's overall readiness and modernization goals?
This contract directly contributes to Army readiness by ensuring the availability of essential mortar ammunition components. Maintaining a robust supply of propelling charges is fundamental for training exercises and operational deployments. While this contract addresses immediate supply needs, its contribution to broader modernization goals would depend on how these charges integrate with future weapon systems and ammunition technologies.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 17575 DMC HIGHWAY 79, MIDDLETOWN, IA, 52638
Business Categories: Category Business, Limited Liability Corporation, Manufacturer of Goods, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,845,765
Exercised Options: $17,845,765
Current Obligation: $17,845,765
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W519TC25D0006
IDV Type: IDC
Timeline
Start Date: 2025-06-17
Current End Date: 2027-05-31
Potential End Date: 2027-05-31 12:05:00
Last Modified: 2025-12-19
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