DoD Awards $131M for MK76-5 Practice Bombs and Components to DELFASCO, LLC

Contract Overview

Contract Amount: $13,120,160 ($13.1M)

Contractor: Delfasco, LLC

Awarding Agency: Department of Defense

Start Date: 2025-08-19

End Date: 2027-09-30

Contract Duration: 772 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ISSUE DELIVERY ORDER FOR AWARD OF PRODUCTION QUANTITY OF MK76-5 PRACTICE BOMB (NSN: 1325-01-071-2561), BDU-33 D/B PRACTICE BOMB (NSN: 1325-01-054-2906), 25LB BOMB SUSPENSION LUG (NSN: 1325-01-236-8604)

Place of Performance

Location: AFTON, GREENE County, TENNESSEE, 37616

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $13.1 million to DELFASCO, LLC for work described as: ISSUE DELIVERY ORDER FOR AWARD OF PRODUCTION QUANTITY OF MK76-5 PRACTICE BOMB (NSN: 1325-01-071-2561), BDU-33 D/B PRACTICE BOMB (NSN: 1325-01-054-2906), 25LB BOMB SUSPENSION LUG (NSN: 1325-01-236-8604) Key points: 1. The contract is for practice bombs and suspension lugs, essential for military training. 2. DELFASCO, LLC, a single awardee, will supply these items. 3. The contract value is $131,201,600. 4. The period of performance spans from August 2025 to September 2027. 5. This is a firm-fixed-price delivery order.

Value Assessment

Rating: fair

The contract value of $131M for practice bombs and components appears substantial. Benchmarking against similar munitions contracts would be necessary to assess if the pricing is competitive, especially given the firm-fixed-price structure which shifts risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a competitive process was initiated, but specific sources may have been excluded. This method aims for competitive pricing but the exclusion criteria warrant scrutiny.

Taxpayer Impact: The firm-fixed-price nature of the contract aims to provide cost certainty for taxpayers, but the final price is dependent on the effectiveness of the competition and the contractor's cost management.

Public Impact

Ensures readiness for military training by providing necessary practice munitions. Supports the Department of the Army's operational requirements. The award contributes to the defense industrial base, specifically in ammunition manufacturing. Long-term contract duration suggests sustained demand for these items.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to exclusion of sources.
Firm-fixed-price contracts can lead to higher initial costs if not carefully negotiated.
Dependence on a single contractor for critical training munitions.

Positive Signals

Clear contract value and performance period.
Firm-fixed-price contract provides cost predictability.
Award supports essential military training needs.

Sector Analysis

This contract falls under the Ammunition (except Small Arms) Manufacturing sector, specifically NAICS 332993. Spending in this sector is critical for national defense readiness and is often subject to rigorous oversight due to its strategic importance.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Therefore, there is no direct benefit to small businesses from this specific award.

Oversight & Accountability

The contract is a delivery order under a larger framework, suggesting existing oversight mechanisms. However, the 'exclusion of sources' clause warrants further investigation to ensure fair competition and prevent potential collusion or undue influence.

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.
Lack of transparency regarding specific exclusion criteria.
Firm-fixed-price contracts can sometimes be less cost-effective if competition is weak.
No small business participation noted in this specific award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.1 million to DELFASCO, LLC. ISSUE DELIVERY ORDER FOR AWARD OF PRODUCTION QUANTITY OF MK76-5 PRACTICE BOMB (NSN: 1325-01-071-2561), BDU-33 D/B PRACTICE BOMB (NSN: 1325-01-054-2906), 25LB BOMB SUSPENSION LUG (NSN: 1325-01-236-8604)

Who is the contractor on this award?

The obligated recipient is DELFASCO, 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 $13.1 million.

What is the period of performance?

Start: 2025-08-19. End: 2027-09-30.

What specific criteria led to the exclusion of certain sources in the 'full and open competition after exclusion of sources' process, and how did this impact the final price?

The criteria for excluding sources are not detailed in the provided data. Typically, such exclusions might be based on technical capabilities, past performance, security clearances, or specific manufacturing requirements. Understanding these criteria is crucial to assess whether the exclusion limited competition unfairly and potentially inflated the price paid by taxpayers. A thorough review would examine the justification for exclusion and its impact on the bidding landscape.

How does the unit cost of these practice bombs compare to similar items procured by other military branches or allied nations, considering the firm-fixed-price structure?

Without specific unit cost data or benchmarks for comparable practice bombs, a direct comparison is difficult. However, the firm-fixed-price (FFP) contract shifts cost risk to DELFASCO, LLC. If DELFASCO's costs are higher than anticipated, the FFP structure means taxpayers bear that cost. Benchmarking against historical data or international procurements would reveal if the $131M award represents value for money or if costs are potentially inflated due to market conditions or limited competitive pressure.

What measures are in place to ensure the quality and timely delivery of these practice bombs, given the two-year performance period and the critical nature of training munitions?

Quality assurance and timely delivery are typically managed through contract clauses, performance metrics, and government inspection points. For this firm-fixed-price contract, DELFASCO, LLC is responsible for meeting specifications and delivery schedules. The Department of Defense likely employs quality assurance representatives (QARs) and conducts inspections throughout the production and delivery process to ensure compliance and mitigate risks associated with training readiness.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1945 SCOTT FARM RD, AFTON, TN, 37616

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

Financial Breakdown

Contract Ceiling: $13,120,160

Exercised Options: $13,120,160

Current Obligation: $13,120,160

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J22D0010

IDV Type: IDC

Timeline