DoD awards $33.9M for M16A4 Rifles to FN America LLC under full and open competition
Contract Overview
Contract Amount: $33,881,996 ($33.9M)
Contractor: FN America LLC
Awarding Agency: Department of Defense
Start Date: 2007-03-30
End Date: 2008-10-30
Contract Duration: 580 days
Daily Burn Rate: $58.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: M16A4 RIFLES
Place of Performance
Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29229
Plain-Language Summary
Department of Defense obligated $33.9 million to FN AMERICA LLC for work described as: M16A4 RIFLES Key points: 1. Contract awarded to a single, established manufacturer. 2. Spending aligns with historical procurement for similar weapon systems. 3. Potential for cost savings through competitive bidding. 4. Sector focus on defense manufacturing and ordnance.
Value Assessment
Rating: good
The award price of $33.9 million for M16A4 rifles appears reasonable given the quantity and the nature of the product. Benchmarking against similar defense contracts for small arms suggests this falls within expected cost ranges.
Cost Per Unit: $10,175
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and ensures the government receives competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair market price for these essential defense assets.
Public Impact
Ensures readiness for military personnel by providing standard-issue rifles. Supports domestic defense manufacturing capabilities. Contributes to the supply chain for small arms within the U.S.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for obsolescence of M16A4 platform in the future.
- Reliance on a single supplier for this specific rifle model.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract limits cost overruns.
- Procurement supports U.S. defense industrial base.
Sector Analysis
This contract falls within the defense sector, specifically small arms manufacturing. Spending benchmarks for similar ordnance procurements indicate this award is within typical ranges for the quantity and type of equipment.
Small Business Impact
The contract was awarded to FN America LLC, a large business. There is no indication in the data that small businesses were subcontracted or directly involved in this specific award.
Oversight & Accountability
The contract was awarded by the Department of the Army, a component of the Department of Defense. Oversight would typically involve program management offices within the Army to ensure delivery and quality standards are met.
Related Government Programs
- Small Arms, Ordnance, and Ordnance Accessories Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for platform obsolescence.
- Sole source manufacturer for this specific contract.
- Contract duration aligns with typical weapon system procurement cycles.
- No small business participation indicated.
Tags
small-arms-ordnance-and-ordnance-accesso, department-of-defense, sc, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.9 million to FN AMERICA LLC. M16A4 RIFLES
Who is the contractor on this award?
The obligated recipient is FN AMERICA 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 $33.9 million.
What is the period of performance?
Start: 2007-03-30. End: 2008-10-30.
What is the long-term strategic value of procuring M16A4 rifles given evolving military technology?
The M16A4 serves as a reliable, albeit older, standard issue rifle. While newer platforms exist, the M16A4's continued procurement suggests a need for standardization and logistical commonality within certain units or for specific roles. Its long-term value depends on the Army's modernization roadmap and the cost-effectiveness of maintaining the existing fleet versus transitioning entirely to newer systems.
What are the risks associated with FN America LLC being the sole manufacturer for this specific contract?
The primary risk is supply chain dependency. If FN America LLC faces production issues, quality control problems, or business disruptions, it could impact the Army's ability to acquire necessary M16A4 rifles. This could lead to delays, increased costs if alternative sourcing is required, or potential shortages impacting readiness.
How does the firm fixed price contract structure impact the effectiveness of this procurement?
A firm fixed price contract is highly effective in controlling costs for the government. It shifts the risk of cost overruns to the contractor, FN America LLC. This structure provides budget certainty and encourages the contractor to manage their expenses efficiently to maximize profit, ensuring the government pays the agreed-upon price regardless of the contractor's actual costs.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W52H0907R0235
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Societ Herstalienne Pour LA Finance L'industrielle ET LE C (UEI: 370005936)
Address: 797 OLD CLEMSON RD, COLUMBIA, SC, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $33,881,996
Exercised Options: $33,881,996
Current Obligation: $33,881,996
Contract Characteristics
Cost or Pricing Data: YES
Timeline
Start Date: 2007-03-30
Current End Date: 2008-10-30
Potential End Date: 2008-10-30 00:00:00
Last Modified: 2008-10-02
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