DoD awards $238.5M contract for practice bombs to Allied Metal Tech, LLC
Contract Overview
Contract Amount: $23,850,632 ($23.9M)
Contractor: Allied Metal Tech, LLC
Awarding Agency: Department of Defense
Start Date: 2025-12-04
End Date: 2027-12-31
Contract Duration: 757 days
Daily Burn Rate: $31.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BDU-50D/B CAST DUCTILE IRON PRACTICE BOMB
Place of Performance
Location: GREENVILLE, OUTAGAMIE County, WISCONSIN, 54942
Plain-Language Summary
Department of Defense obligated $23.9 million to ALLIED METAL TECH, LLC for work described as: BDU-50D/B CAST DUCTILE IRON PRACTICE BOMB Key points: 1. Contract awarded for BDU-50D/B CAST DUCTILE IRON PRACTICE BOMB. 2. Allied Metal Tech, LLC is the sole awardee. 3. The contract falls under Ammunition (except Small Arms) Manufacturing. 4. This is a Delivery Order under an existing contract. 5. The contract has a duration of 757 days.
Value Assessment
Rating: fair
The total contract value is $238.5 million. Without specific per-unit cost data or benchmarks for similar practice bombs, a precise value assessment is difficult. The firm fixed price suggests cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition method is 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests an initial limited competition or a specific reason for excluding other sources, which may impact price discovery and potentially lead to higher costs.
Taxpayer Impact: The impact on taxpayers is moderate, given the significant contract value. The limited competition raises questions about whether the best possible price was achieved.
Public Impact
Ensures availability of training munitions for the Department of the Army. Supports the defense manufacturing sector. Potential for job creation within the awarded company and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises cost concerns.
- Lack of detailed cost breakdown makes value assessment difficult.
- No indication of small business participation.
Positive Signals
- Firm fixed price contract provides cost certainty.
- Supports essential military training needs.
- Long-term contract duration ensures supply continuity.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending benchmarks for this specific type of practice munition are not readily available, but the value is substantial.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this procurement.
Oversight & Accountability
The contract is a Delivery Order under a larger contract, suggesting some level of prior oversight. However, the limited competition method warrants closer examination by oversight bodies to ensure fair pricing and adherence to procurement regulations.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher costs.
- Lack of detailed cost data hinders value analysis.
- No small business participation noted.
- Potential for price escalation if competition is further restricted.
- Dependence on a single supplier for this specific munition.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, wi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.9 million to ALLIED METAL TECH, LLC. BDU-50D/B CAST DUCTILE IRON PRACTICE BOMB
Who is the contractor on this award?
The obligated recipient is ALLIED METAL 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 $23.9 million.
What is the period of performance?
Start: 2025-12-04. End: 2027-12-31.
What is the rationale behind the 'exclusion of sources' in the competition method, and how did it impact the final price?
The rationale for excluding sources is not detailed in the provided data. Typically, such exclusions are based on specific technical requirements, proprietary information, or prior performance. Understanding this rationale is crucial to assessing whether the limited competition resulted in a fair and reasonable price or if it potentially inflated costs for the government and taxpayers.
What is the cost per unit for these practice bombs, and how does it compare to industry benchmarks?
The provided data does not include the per-unit cost for the BDU-50D/B practice bombs. Without this information, it is impossible to establish a benchmark against similar contracts or industry standards. This lack of transparency hinders a thorough value assessment and makes it difficult to determine if the government is receiving a competitive price.
What is the expected impact of this contract on the readiness and training capabilities of the Department of the Army?
This contract ensures the supply of essential practice munitions, which are critical for realistic training scenarios for aircrews and ground personnel. The duration of the contract (757 days) suggests a sustained need, indicating that these practice bombs are integral to ongoing training programs and contribute directly to maintaining operational readiness within the Department of the Army.
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: N987 CRAFTSMEN DR, GREENVILLE, WI, 54942
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Manufacturer of Goods, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,850,632
Exercised Options: $23,850,632
Current Obligation: $23,850,632
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W519TC26D0002
IDV Type: IDC
Timeline
Start Date: 2025-12-04
Current End Date: 2027-12-31
Potential End Date: 2027-12-31 12:12:00
Last Modified: 2025-12-04
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