Army awards $23.5M for Ammunition Manufacturing, highlighting potential for specialized defense contracting

Contract Overview

Contract Amount: $23,536,403 ($23.5M)

Contractor: Delfasco Inc

Awarding Agency: Department of Defense

Start Date: 2005-08-11

End Date: 2010-09-30

Contract Duration: 1,876 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200511!001765!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0071 !A!N! !N! ! !20050811!20060731!084051036!084051036!051389393!N!DELFASCO, INC !1945 SCOTT FARM RD !AFTON !TN!37616!30980!059!47!GREENEVILLE !GREENE !TENNESSEE !+000004217109!N!N!000000000000!1325!BOMBS !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!J!2!001!K! !A!N!A! ! !N!B!N!Y! ! !A! !B!A!000!A!B!Y!C! ! ! ! ! !0001! !

Place of Performance

Location: AFTON, GREENE County, TENNESSEE, 37616

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $23.5 million to DELFASCO INC for work described as: 200511!001765!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0071 !A!N! !N! ! !20050811!20060731!084051036!084051036!051389393!N!DELFASCO, INC !1945 SCOTT FARM RD !AFTON !TN!37616!30980!059!47!GREENEVILLE !GREE… Key points: 1. The contract for ammunition manufacturing was awarded to DELFASCO, INC. 2. The total value of the contract is $23,536,402.75. 3. The contract was awarded under 'Full and Open Competition After Exclusion of Sources'. 4. The period of performance spans from August 11, 2005, to September 30, 2010. 5. The primary sector is Defense, specifically Ammunition Manufacturing.

Value Assessment

Rating: fair

The contract value of $23.5M for ammunition manufacturing over a 5-year period appears within a reasonable range for specialized defense goods. However, without specific per-unit cost data or benchmarks for similar ammunition types, a precise valuation is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The 'Full and Open Competition After Exclusion of Sources' suggests a limited competition, potentially impacting price discovery. While competition existed, the exclusion of certain sources might have restricted the pool of bidders, possibly leading to a less competitive price than a truly open bid.

Taxpayer Impact: Taxpayer impact is moderate, reflecting the cost of specialized defense procurement. The limited competition may have resulted in a slightly higher cost than if broader competition were pursued.

Public Impact

Ensures the U.S. Army maintains a supply of essential ammunition. Supports a specific defense manufacturing capability within the United States. The long performance period indicates a sustained need for these munitions. Potential for follow-on contracts if performance is satisfactory.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs.
Long performance period may not reflect current market prices.
Lack of detailed cost breakdown makes precise value assessment challenging.

Positive Signals

Addresses a critical defense need for the Army.
Contract awarded to a single, established vendor.
Clear period of performance and defined deliverables.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing of ammunition. Spending in this area is critical for national security, and benchmarks are often tied to specific military requirements and production capabilities, making direct comparisons challenging.

Small Business Impact

The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this procurement.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard DoD oversight mechanisms would apply, focusing on contract performance, quality control, and financial accountability throughout the contract lifecycle.

Related Government Programs

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

Risk Flags

Limited competition may have inflated costs.
Long contract duration could obscure current market value.
Lack of detailed cost data hinders precise value assessment.
Potential for obsolescence of ammunition types over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.5 million to DELFASCO INC. 200511!001765!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J05C0071 !A!N! !N! ! !20050811!20060731!084051036!084051036!051389393!N!DELFASCO, INC !1945 SCOTT FARM RD !AFTON !TN!37616!30980!059!47!GREENEVILLE !GREENE !TENNESSEE !+000004217109!N!N!000000000000!1325!BOMBS !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is DELFASCO INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2005-08-11. End: 2010-09-30.

What is the specific type of ammunition being manufactured, and how does its cost compare to similar munitions procured by other branches or allies?

The data specifies 'AMMUNITION' under the National Stock Number '332993', categorized as 'Ammunition (except Small Arms) Manufacturing'. Without further details on the exact type of ammunition (e.g., caliber, explosive fill, intended use), a precise cost comparison is difficult. However, the contract value of $23.5M over approximately five years suggests a significant quantity or a highly specialized type of munition, warranting further investigation into unit costs against industry or allied benchmarks.

How did the 'Full and Open Competition After Exclusion of Sources' impact the final price compared to a standard full and open competition?

Excluding sources in a 'Full and Open Competition' implies that while the competition was open to all responsible sources, certain categories or specific companies were intentionally excluded, possibly due to security, capability, or prior performance issues. This limitation on the bidder pool could reduce competitive pressure, potentially leading to a higher price than if all potential manufacturers were allowed to compete. The actual price impact would depend on the number and competitiveness of the remaining bidders.

What is the assessed value for money given the contract's duration and the nature of ammunition production?

Assessing value for money is challenging without detailed cost breakdowns and current market data. The contract spans over five years (Aug 2005 - Sep 2010), a considerable period for a fixed-price contract. While securing a long-term supply is valuable for the Army, the fixed price might not have captured potential cost efficiencies or market fluctuations over time. The 'fair' rating reflects the difficulty in definitively stating excellent value due to limited transparency on cost drivers and competitive dynamics.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Delfasco Inc. (UEI: 051389393)

Address: 1945 SCOTT FARM RD, AFTON, TN, 01

Business Categories: Category Business, HUBZone Firm, Small Business, Special Designations

Timeline