Army Awards $88.4M Contract for Ammunition to AMTEC Corporation, Facing Limited Competition
Contract Overview
Contract Amount: $12,906,411 ($12.9M)
Contractor: Amtec Corporation
Awarding Agency: Department of Defense
Start Date: 2004-06-30
End Date: 2010-09-30
Contract Duration: 2,283 days
Daily Burn Rate: $5.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200409!001451!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0070 !A!N! !N! ! !20040630!20050930!884356429!884356429!006196174!N!AMTEC CORPORATION !4230 CAPITAL CIRCLE !JANESVILLE !WI!53546!37825!105!55!JANESVILLE !ROCK !WISCONSIN !+000007012194!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!007!K! !A!N!A! ! !N!B!N!N! ! !C! !B!A!00 !A!B!Y!G! ! ! ! ! !0001! !
Place of Performance
Location: JANESVILLE, ROCK County, WISCONSIN, 53546
Plain-Language Summary
Department of Defense obligated $12.9 million to AMTEC CORPORATION for work described as: 200409!001451!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0070 !A!N! !N! ! !20040630!20050930!884356429!884356429!006196174!N!AMTEC CORPORATION !4230 CAPITAL CIRCLE !JANESVILLE !WI!53546!37825!105!55!JANESVILLE !ROCK… Key points: 1. The contract for ammunition over 30mm up to 75mm was awarded to AMTEC CORPORATION. 2. The total value of the contract is $88,435,642.90. 3. Competition was full and open after exclusion of sources, indicating potential limitations. 4. The sector is Defense, specifically ammunition manufacturing. 5. The contract duration is over 2 years, from June 2004 to September 2010.
Value Assessment
Rating: fair
The contract value of $88.4 million over approximately 2 years suggests a moderate spending level. Benchmarking against similar ammunition contracts would be necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This method can sometimes lead to less competitive pricing compared to unrestricted full and open competition.
Taxpayer Impact: The pricing impact on taxpayers is unclear without further analysis of the competition's effectiveness and the final negotiated price.
Public Impact
Ensures supply of critical ammunition for the U.S. Army. Supports a manufacturing facility in Janesville, Wisconsin. Potential impact on defense readiness and supply chain resilience.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition method may impact price.
- Contract duration is lengthy, potentially locking in prices.
- Lack of specific performance metrics provided.
Positive Signals
- Award to a single, established vendor.
- Clear product description and quantity.
- Fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the Defense sector, specifically the manufacturing of ammunition. Spending benchmarks for ammunition procurement can vary significantly based on type, quantity, and geopolitical factors.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or if AMTEC CORPORATION itself is a small business. Further investigation is needed to assess small business participation.
Oversight & Accountability
Oversight would typically involve contract performance monitoring by the Department of the Army to ensure timely delivery and quality of ammunition, as well as adherence to contract terms.
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.
- Long contract duration.
- Lack of transparency on source exclusion justification.
- No clear indication of small business participation.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, wi, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.9 million to AMTEC CORPORATION. 200409!001451!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0070 !A!N! !N! ! !20040630!20050930!884356429!884356429!006196174!N!AMTEC CORPORATION !4230 CAPITAL CIRCLE !JANESVILLE !WI!53546!37825!105!55!JANESVILLE !ROCK !WISCONSIN !+000007012194!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 AMTEC CORPORATION.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2004-06-30. End: 2010-09-30.
What was the justification for excluding other sources in the 'full and open competition after exclusion of sources' method?
The justification for excluding other sources would likely stem from specific technical requirements, existing relationships, or unique manufacturing capabilities that only AMTEC CORPORATION could meet. This method aims to ensure competition among qualified bidders while potentially streamlining the process if only a limited number of entities possess the necessary qualifications.
How does the per-unit cost of this ammunition compare to similar contracts awarded by other military branches or allies?
A comparative analysis of per-unit costs against similar ammunition contracts is crucial for assessing value. Factors such as bulk purchasing, specific technical requirements, and market fluctuations influence pricing. Without access to comparable contract data, it is difficult to definitively state if this contract represents a favorable or unfavorable price point for the taxpayer.
What are the key performance indicators (KPIs) for this contract, and how has AMTEC CORPORATION performed against them?
Key performance indicators for ammunition contracts typically include on-time delivery, quality control (defect rates), and adherence to specifications. Information on AMTEC CORPORATION's performance against these KPIs is not provided in the data. Effective oversight would involve tracking these metrics to ensure the contract's objectives are met efficiently and effectively.
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
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: National Presto Industries Inc (UEI: 006196174)
Address: 4230 CAPITAL CIRCLE, JANESVILLE, WI, 01
Business Categories: Category Business, Small Business
Timeline
Start Date: 2004-06-30
Current End Date: 2010-09-30
Potential End Date: 2010-09-30 00:00:00
Last Modified: 2009-09-16
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