Army Awards $13.3M Contract for Ammunition Manufacturing to American Ordnance LLC
Contract Overview
Contract Amount: $13,307,183 ($13.3M)
Contractor: American Ordnance LLC, Milan O
Awarding Agency: Department of Defense
Start Date: 2004-05-27
End Date: 2011-03-15
Contract Duration: 2,483 days
Daily Burn Rate: $5.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200408!001116!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0050 !A!N! !N! ! !20040527!20050630!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48680!017!47!MILAN ARMY AMMUNITIO!CARROLL !TENNESSEE !+000001423973!N!N!000000000000!1310!AMMUNITION, OVER 30 MM UP TO 75 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !A!N!J!2!004!B! !Z!N!A! ! !N!C!N! ! ! !C!C!A!A!000!A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: MILAN, GIBSON County, TENNESSEE, 38358
Plain-Language Summary
Department of Defense obligated $13.3 million to AMERICAN ORDNANCE LLC, MILAN O for work described as: 200408!001116!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0050 !A!N! !N! ! !20040527!20050630!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48680!017!47!MILAN ARMY AMMUNITIO!CARR… Key points: 1. The contract is for ammunition over 30mm up to 75mm. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contractor, American Ordnance LLC, is located in Milan, TN. 4. The contract duration is approximately 207 months (2483 days).
Value Assessment
Rating: fair
The contract value is $13.3 million. Without specific benchmarks for this type of ammunition, a direct pricing assessment is difficult. However, the duration suggests a long-term commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting that multiple bidders had the opportunity to compete. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more favorable price compared to a sole-source procurement.
Public Impact
Ensures supply of critical ammunition for military operations. Supports jobs and economic activity in Milan, Tennessee. Potential for long-term strategic partnership with a domestic manufacturer.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (207 months) may pose risks if requirements change.
- Reliance on a single contractor for a specific type of ammunition.
Positive Signals
- Awarded through full and open competition.
- Supports domestic manufacturing capabilities.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. Spending in this area is critical for national security, and contracts are often awarded through competitive processes to ensure value.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for defense contracts would apply.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration
- Potential for requirement changes
- Sole-source manufacturer for specific item
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, tn, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.3 million to AMERICAN ORDNANCE LLC, MILAN O. 200408!001116!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0050 !A!N! !N! ! !20040527!20050630!037744765!037744765!011148157!N!AMERICAN ORDNANCE LLC, MILAN O!2280 HWY 104, SUITE 2 !MILAN !TN!38358!48680!017!47!MILAN ARMY AMMUNITIO!CARROLL !TENNESSEE !+000001423973!N!N!000000000000!1310!AMMUNITION, OVER 30 MM UP TO 75 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is AMERICAN ORDNANCE LLC, MILAN O.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $13.3 million.
What is the period of performance?
Start: 2004-05-27. End: 2011-03-15.
What is the historical pricing trend for similar ammunition contracts awarded under full and open competition?
Analyzing historical pricing for comparable ammunition contracts awarded through full and open competition is crucial for assessing value. Without this data, it's challenging to definitively state if the $13.3 million award represents a competitive price. Factors like material costs, production volume, and specific technical requirements influence pricing, necessitating a detailed comparison to similar procurements.
What are the specific risks associated with a 207-month contract duration for ammunition manufacturing?
A 207-month contract duration presents several risks, including potential obsolescence of technology, changes in military requirements, and fluctuations in raw material costs over such an extended period. It also ties up significant resources and may limit the government's flexibility to adopt newer, potentially more effective or cost-efficient ammunition types that emerge during the contract's term.
How effectively does this contract ensure the long-term availability and readiness of essential ammunition for the U.S. Army?
This contract aims to ensure long-term availability by securing a dedicated manufacturing source for critical ammunition. Awarding it through full and open competition suggests a focus on securing a reliable supplier at a competitive price. However, effectiveness also depends on the contractor's performance, supply chain resilience, and the government's ability to manage the long-term relationship and adapt to evolving needs.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2280 HWY 104, SUITE 2, MILAN, TN, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-05-27
Current End Date: 2011-03-15
Potential End Date: 2011-03-15 00:00:00
Last Modified: 2011-05-02
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