Army Awards $825M Contract for Ammunition to Kilgore Flares Company LLC

Contract Overview

Contract Amount: $156,309,315 ($156.3M)

Contractor: Kilgore Flares Company LLC

Awarding Agency: Department of Defense

Start Date: 2004-09-30

End Date: 2010-04-30

Contract Duration: 2,038 days

Daily Burn Rate: $76.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200501!000058!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0097 !A!N! !N! ! !20041020!20060315!824862254!824862254!618705925!N!KILGORE FLARES COMPANY LLC !155 KILGORE DRIVE !TOONE !TN!38381!74640!069!47!TOONE !HARDEMAN !TENNESSEE !+000018431443!N!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!003!N!3A!A!N!A! ! !N!C!N! ! ! !A!A!A!A!000!A!D!Y! ! ! ! ! ! !0001! !

Place of Performance

Location: TOONE, HARDEMAN County, TENNESSEE, 38381

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $156.3 million to KILGORE FLARES COMPANY LLC for work described as: 200501!000058!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0097 !A!N! !N! ! !20041020!20060315!824862254!824862254!618705925!N!KILGORE FLARES COMPANY LLC !155 KILGORE DRIVE !TOONE !TN!38381!74640!069!47!TOONE !HARD… Key points: 1. The contract value is substantial at $824.86 million, indicating a significant procurement. 2. Competition was full and open after exclusion of sources, suggesting some initial limitations. 3. The risk appears moderate given the firm fixed price contract type and established vendor. 4. The sector is Defense, specifically Ammunition Manufacturing, a critical area for military readiness.

Value Assessment

Rating: good

The contract value of $824.86 million for ammunition appears reasonable given the duration of the contract (over 5 years) and the nature of the product. Benchmarking against similar large-scale ammunition procurements would provide a more precise 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 suggests that while competition was sought, certain sources may have been excluded initially, potentially impacting the full breadth of price discovery.

Taxpayer Impact: The large contract value means taxpayers are funding a significant portion of the defense budget through this procurement.

Public Impact

Ensures continued supply of critical ammunition for U.S. Army operations. Supports a specific manufacturing facility and its workforce in Tennessee. Potential for follow-on contracts or related procurements in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 77 / 10

Warning Flags

Limited competition method could lead to suboptimal pricing.
Long contract duration may not fully capture market price fluctuations.
Dependence on a single supplier for a critical defense item.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government.
Established vendor with a history of supplying the government.
Contract supports domestic manufacturing capabilities.

Sector Analysis

This contract falls within the Defense sector, specifically the manufacturing of ammunition. Spending in this area is driven by military readiness requirements and geopolitical factors. Benchmarks for similar large-scale ammunition contracts would be in the hundreds of millions to billions of dollars.

Small Business Impact

The contract was awarded to KILGORE FLARES COMPANY LLC, which is not indicated as a small business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was awarded by the Department of the Army. Oversight would typically involve contract management teams ensuring delivery schedules, quality standards, and adherence to the firm fixed price.

Related Government Programs

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

Risk Flags

Potential for limited competition to inflate costs.
Dependence on a single contractor for critical defense supplies.
Long contract duration may not reflect current market conditions.
Lack of transparency regarding source exclusion rationale.
Potential supply chain vulnerabilities for specialized components.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $156.3 million to KILGORE FLARES COMPANY LLC. 200501!000058!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0097 !A!N! !N! ! !20041020!20060315!824862254!824862254!618705925!N!KILGORE FLARES COMPANY LLC !155 KILGORE DRIVE !TOONE !TN!38381!74640!069!47!TOONE !HARDEMAN !TENNESSEE !+000018431443!N!N!000000000000!1370!PYROTECHNICS !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is KILGORE FLARES COMPANY 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 $156.3 million.

What is the period of performance?

Start: 2004-09-30. End: 2010-04-30.

What was the rationale for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' method, and how did this impact the final price?

The specific rationale for excluding sources is not detailed in the provided data. Typically, such exclusions might be due to specialized capabilities, prior performance, or specific security requirements. Understanding this rationale is crucial to assessing whether the competition truly yielded the best possible price or if alternative, potentially more competitive, avenues were overlooked.

What are the specific types of ammunition being procured, and are there any known supply chain risks associated with their components?

The data categorizes the product as 'Ammunition (except Small Arms) Manufacturing' and 'PYROTECHNICS'. Specific types are not detailed. Supply chain risks could exist for raw materials, propellants, or specialized components. A thorough risk assessment would require knowledge of the exact items and their respective supply chains.

How does the awarded price per unit compare to historical prices for similar ammunition types, and what is the projected usage rate over the contract's duration?

The provided data does not include per-unit pricing or detailed usage projections. While the total contract value is known, assessing the value for money requires breaking down the cost by item and comparing it to benchmarks. Understanding the projected usage rate is also key to evaluating the overall expenditure against anticipated 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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 155 KILGORE DRIVE, TOONE, TN, 08

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline