Army awards $14.3M contract for 30-75mm ammunition to Avasar Corporation

Contract Overview

Contract Amount: $14,284,877 ($14.3M)

Contractor: Avasar Corp.

Awarding Agency: Department of Defense

Start Date: 2005-07-29

End Date: 2011-04-14

Contract Duration: 2,085 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200510!001537!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0059 !A!N! !N! ! !20050729!20060831!038389594!038389594!038389594!N!AVASAR CORPORATION !9495 PUCKETT RD !PERRY !FL!32348!56150!123!12!PERRY !TAYLOR !FLORIDA !+000001353902!N!N!000000000000!1310!AMMUNITION, OVER 30 MM UP TO 75 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!004!K! !Z!N!A! ! !N!A!Y!Y!A! ! ! !D!A!000!A!B!Y!A! ! ! ! ! !0001! !

Place of Performance

Location: MELBOURNE, BREVARD County, FLORIDA, 32904

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $14.3 million to AVASAR CORP. for work described as: 200510!001537!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0059 !A!N! !N! ! !20050729!20060831!038389594!038389594!038389594!N!AVASAR CORPORATION !9495 PUCKETT RD !PERRY !FL!32348!56150!123!12!PERRY !TAYL… Key points: 1. The contract is for ammunition, specifically for rounds larger than 30mm but not exceeding 75mm. 2. Avasar Corporation, based in Perry, Florida, is the contractor. 3. The contract was awarded under full and open competition after exclusion of sources. 4. The total value of the contract is $14,284,876.55. 5. The period of performance spans from July 29, 2005, to April 14, 2011.

Value Assessment

Rating: fair

The contract value of $14.3 million for ammunition appears to be within a reasonable range for specialized military supplies, though specific benchmarks for this exact caliber are not readily available. The duration of the contract (over 5 years) suggests a significant procurement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition after exclusion of sources, indicating a competitive process was intended. However, the 'exclusion of sources' clause warrants further investigation to understand if it limited the competitive pool and potentially impacted price discovery.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers. The final price of $14.3 million reflects the outcome of this process for a specific type of ammunition.

Public Impact

Ensures supply of critical ammunition for U.S. Army operations. Supports a defense contractor based in Florida. The contract's duration impacts long-term military readiness planning. Procurement of specialized ammunition can influence battlefield capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition due to 'exclusion of sources' clause.
Long performance period could lead to price fluctuations or obsolescence.
Lack of specific per-unit cost data makes detailed value assessment difficult.

Positive Signals

Awarded under full and open competition, suggesting an attempt at market fairness.
Contract addresses a specific and critical military need.
Contractor is a known entity in the defense supply chain.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. Spending benchmarks for this niche can vary widely based on caliber, quantity, and technological complexity. The $14.3 million award is substantial for a single contract of this nature.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or partners in this contract. 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, including performance monitoring and financial accountability, though specific oversight details are not provided.

Related Government Programs

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

Risk Flags

Potential for limited competition.
Long contract duration.
Lack of detailed cost breakdown.
Ambiguity in 'exclusion of sources' justification.
No clear indication of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.3 million to AVASAR CORP.. 200510!001537!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0059 !A!N! !N! ! !20050729!20060831!038389594!038389594!038389594!N!AVASAR CORPORATION !9495 PUCKETT RD !PERRY !FL!32348!56150!123!12!PERRY !TAYLOR !FLORIDA !+000001353902!N!N!000000000000!1310!AMMUNITION, OVER 30 MM UP TO 75 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is AVASAR CORP..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2005-07-29. End: 2011-04-14.

What was the specific reason for excluding sources in the 'full and open competition after exclusion of sources' award?

The exclusion of sources clause in a 'full and open competition' award typically implies that while the competition was open to all eligible sources, certain pre-identified sources were either excluded for specific reasons (e.g., past performance, security concerns) or the solicitation was structured in a way that naturally limited the pool. Understanding the exact justification is crucial to assess if the competition was truly maximized or if it represented a less competitive scenario.

How does the $14.3 million contract value compare to industry benchmarks for similar ammunition types and quantities?

Without specific details on the exact quantity and technical specifications of the 'AMMUNITION, OVER 30 MM UP TO 75 MM', a precise benchmark comparison is challenging. However, for specialized military-grade ammunition, costs can be significant due to stringent quality control, material requirements, and production processes. The value appears substantial, suggesting a considerable quantity or high-specification rounds were procured over the contract's extended period.

What is the potential risk associated with the long performance period (2005-2011) for ammunition procurement?

A long performance period for ammunition carries risks such as potential obsolescence of technology, degradation of stored materials, and market price fluctuations for raw components. It also ties up significant funds over an extended duration. However, it can also provide supply chain stability and potentially better pricing through long-term commitment, depending on the contract type and market conditions.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 9495 PUCKETT RD, PERRY, FL, 02

Business Categories: 8(a) Program Participant, Category Business, HUBZone Firm, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline