Army awards $4.88M for 377,812 mortar fin assemblies under full and open competition

Contract Overview

Contract Amount: $4,884,133 ($4.9M)

Contractor: Globe Tech LLC

Awarding Agency: Department of Defense

Start Date: 2025-04-25

End Date: 2026-12-31

Contract Duration: 615 days

Daily Burn Rate: $7.9K/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 ORDER IS FOR THE PROCUREMENT OF 187,958 M24 81 MM FIN ASSEMBLY AND 189,854 M27 60 MM FIN ASSEMBLY AS A SINGLE AWARD DURING ORDERING PERIOD TWO.

Place of Performance

Location: PLYMOUTH, WAYNE County, MICHIGAN, 48170

State: Michigan Government Spending

Plain-Language Summary

Department of Defense obligated $4.9 million to GLOBE TECH LLC for work described as: THIS ORDER IS FOR THE PROCUREMENT OF 187,958 M24 81 MM FIN ASSEMBLY AND 189,854 M27 60 MM FIN ASSEMBLY AS A SINGLE AWARD DURING ORDERING PERIOD TWO. Key points: 1. Procurement of 377,812 mortar fin assemblies for the Department of the Army. 2. Awarded to GLOBE TECH LLC, a single supplier for this order. 3. The contract is Firm Fixed Price, aiming to control costs. 4. This falls under the Ammunition (except Small Arms) Manufacturing sector.

Value Assessment

Rating: good

The total award is $4.88 million for approximately 377,812 units. This suggests a per-unit cost of roughly $12.92. Benchmarking against similar defense component procurements would be necessary for a precise assessment, but this appears within a reasonable range for specialized military hardware.

Cost Per Unit: $12.92

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. While competition was initially intended, the exclusion of sources suggests a specific reason, potentially related to technical requirements or existing capabilities. This method can impact price discovery if the pool of eligible bidders is significantly narrowed.

Taxpayer Impact: Taxpayer funds are being used for essential military components. The use of full and open competition, even with exclusions, aims to secure the best value, though the specific impact on price depends on the number and competitiveness of the final bidders.

Public Impact

Ensures supply of critical mortar components for Army operations. Supports defense manufacturing capabilities within the United States. The procurement contributes to the readiness of military forces.

Waste & Efficiency Indicators

Waste Risk Score: 79 / 10

Warning Flags

Potential for limited competition due to source exclusion.
Reliance on a single awardee for this specific order.

Positive Signals

Firm Fixed Price contract type helps manage cost certainty.
Clear delivery timeline established for the components.

Sector Analysis

This procurement falls within the Ammunition (except Small Arms) Manufacturing sector, specifically for mortar fin assemblies. Spending in this sector is driven by defense needs and technological advancements in ordnance. Benchmarks for similar components would typically be found within defense procurement databases.

Small Business Impact

The data indicates the awardee is GLOBE TECH LLC. There is no specific information provided regarding small business participation or subcontracting goals within this particular delivery order. Further analysis would be needed to determine if small businesses were involved.

Oversight & Accountability

The Department of the Army is the procuring agency, with the Department of Defense overseeing broader defense spending. Oversight mechanisms would typically involve contract management, performance monitoring, and financial audits to ensure compliance and proper use of funds.

Related Government Programs

Ammunition (except Small Arms) Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Potential for limited competition due to source exclusion.
Reliance on a single awardee for this specific order.
Contract duration extends over a significant period (2025-2026).
Lack of explicit small business subcontracting information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.9 million to GLOBE TECH LLC. THIS ORDER IS FOR THE PROCUREMENT OF 187,958 M24 81 MM FIN ASSEMBLY AND 189,854 M27 60 MM FIN ASSEMBLY AS A SINGLE AWARD DURING ORDERING PERIOD TWO.

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 $4.9 million.

What is the period of performance?

Start: 2025-04-25. End: 2026-12-31.

What was the specific reason for excluding sources in the 'full and open competition' process, and how did it affect the final price?

The exclusion of sources from the full and open competition likely stemmed from specific technical specifications, unique manufacturing capabilities, or security requirements that only a limited number of vendors could meet. This could potentially lead to a higher price than if a broader range of competitors were involved, as it narrows the field of bidders and may reduce downward price pressure.

What is the long-term strategic value of procuring these specific mortar fin assemblies, and are there alternative suppliers for future needs?

These fin assemblies are critical components for mortar systems, directly impacting the operational readiness and effectiveness of Army units. The long-term value lies in maintaining a robust supply chain for essential munitions. Assessing alternative suppliers for future procurements is crucial to mitigate risks associated with single-award orders and to foster ongoing competition, potentially leading to better pricing and innovation.

How does the unit cost of these fin assemblies compare to similar components procured by other military branches or allied nations?

Comparing the per-unit cost of $12.92 requires access to detailed cost data for comparable components across different entities. Factors such as material costs, manufacturing complexity, volume, and specific technical requirements can significantly influence pricing. A comprehensive benchmark analysis would involve examining publicly available contract awards for similar defense articles, considering any variations in specifications and quantities.

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: $4,884,133

Exercised Options: $4,884,133

Current Obligation: $4,884,133

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