DoD Awards $640M for Special Ammunition & Weapons Systems to Global Military Products Inc

Contract Overview

Contract Amount: $639,828,024 ($639.8M)

Contractor: Global Military Products Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-23

End Date: 2027-07-10

Contract Duration: 655 days

Daily Burn Rate: $976.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SPECIAL AMMUNITION AND WEAPONS SYSTEM REQUIREMENT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $639.8 million to GLOBAL MILITARY PRODUCTS INC for work described as: SPECIAL AMMUNITION AND WEAPONS SYSTEM REQUIREMENT Key points: 1. Significant contract value of $640M for specialized military hardware. 2. Global Military Products Inc. is the sole awardee under full and open competition. 3. Contract duration extends to July 2027, indicating a long-term need. 4. The award falls under Ammunition (except Small Arms) Manufacturing NAICS code.

Value Assessment

Rating: good

The contract's firm fixed price structure provides cost certainty for the government. Benchmarking against similar ammunition contracts is difficult without more specific product details, but the value suggests a substantial procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. The use of a delivery order indicates a flexible approach to fulfilling specific requirements within the awarded contract.

Taxpayer Impact: The competitive award process aims to secure the best value for taxpayers, although the specific unit costs are not detailed here.

Public Impact

Ensures continued supply of critical ammunition and weapons systems for the U.S. Army. Supports national defense capabilities through advanced military hardware procurement. Potential economic impact through manufacturing and supply chain activities in Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific product details makes detailed cost analysis challenging.
Reliance on a single awardee for specialized systems could pose future supply chain risks if not managed proactively.

Positive Signals

Full and open competition promotes fair pricing.
Firm fixed price contract provides budget predictability.
Long-term contract ensures sustained availability of critical assets.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. Spending benchmarks for such specialized systems are highly variable based on technological complexity and quantity.

Small Business Impact

The data indicates the primary awardee is Global Military Products Inc., a large business. There is no explicit mention of small business participation in this specific award, suggesting potential missed opportunities for subcontracting.

Oversight & Accountability

The Department of the Army's procurement process, including full and open competition, suggests established oversight. However, ongoing monitoring of performance and cost control will be crucial throughout the contract's duration.

Related Government Programs

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

Risk Flags

Potential for sole-source dependency despite initial competition.
Lack of detailed product specification hinders granular cost analysis.
No explicit small business subcontracting noted.
Long contract duration requires sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $639.8 million to GLOBAL MILITARY PRODUCTS INC. SPECIAL AMMUNITION AND WEAPONS SYSTEM REQUIREMENT

Who is the contractor on this award?

The obligated recipient is GLOBAL MILITARY PRODUCTS 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 $639.8 million.

What is the period of performance?

Start: 2025-09-23. End: 2027-07-10.

What is the specific type of 'special ammunition and weapons system' being procured, and how does its complexity influence the price?

The provided data lacks specificity regarding the exact 'special ammunition and weapons system.' This ambiguity makes it difficult to assess the pricing accurately. Complex systems with advanced technology, unique materials, or stringent performance requirements typically command higher prices due to increased research, development, manufacturing, and testing costs.

What are the potential risks associated with awarding a significant contract for specialized military hardware under full and open competition to a single entity?

While full and open competition is generally positive, awarding to a single entity, even after competition, can create dependency. Risks include potential supply chain disruptions if the sole contractor faces production issues, limited leverage for future price negotiations if competition is not sustained, and the possibility of the contractor becoming a single point of failure for critical national defense assets.

How effective is the firm fixed price contract in ensuring value for money given the specialized nature of the procurement?

A firm fixed price contract is generally effective in controlling costs by shifting risk to the contractor. However, for highly specialized or novel systems, the initial price might be based on estimates that could prove inaccurate. Effectiveness hinges on the contractor's ability to manage production efficiently and the government's oversight to ensure the price reflects true value and avoids excessive profit margins.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: WEAPONS

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: 2701 N ROCKY POINT DR STE 1070, TAMPA, FL, 33607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $1,279,656,048

Exercised Options: $639,828,024

Current Obligation: $639,828,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J22D0007

IDV Type: IDC

Timeline