DoD Awards $15.4M Ammunition Contract to Avasar Corp. with Full and Open Competition
Contract Overview
Contract Amount: $15,372,255 ($15.4M)
Contractor: Avasar Corp.
Awarding Agency: Department of Defense
Start Date: 2009-09-01
End Date: 2014-12-31
Contract Duration: 1,947 days
Daily Burn Rate: $7.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 5
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: AWARD BASIC QUANTITY
Place of Performance
Location: MELBOURNE, BREVARD County, FLORIDA, 32904
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $15.4 million to AVASAR CORP. for work described as: AWARD BASIC QUANTITY Key points: 1. Contract awarded to Avasar Corp. for ammunition manufacturing. 2. Utilized full and open competition after excluding sources, suggesting a competitive process. 3. The contract spans nearly 5 years, indicating a significant duration for supply. 4. The fixed-price with economic price adjustment structure aims to mitigate cost fluctuations. 5. The total award value is $15.4 million.
Value Assessment
Rating: good
The contract value of $15.4 million for ammunition manufacturing appears reasonable given the nearly 5-year duration. Benchmarking against similar large-scale ammunition procurements would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while multiple sources were considered, some were excluded, potentially impacting the breadth of competition and price discovery.
Taxpayer Impact: The competitive nature of the award, even with exclusions, suggests an effort to secure fair pricing for taxpayers. The economic price adjustment clause aims to protect against unforeseen cost increases.
Public Impact
Ensures supply of essential ammunition for the Department of the Army. Supports defense industrial base capabilities within Florida. Potential for economic impact through Avasar Corp.'s operations and supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Potential impact of source exclusion on final price.
- Economic price adjustment could lead to cost overruns if not managed carefully.
Positive Signals
- Awarded through a competitive process.
- Long-term contract provides supply stability.
- Fixed-price structure with adjustment offers some cost certainty.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending in this area is critical for national security and is subject to rigorous procurement standards and oversight.
Small Business Impact
The data does not indicate if small businesses were involved as subcontractors or partners in this award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
The contract's duration and value suggest it would be subject to standard Department of Defense oversight mechanisms to ensure performance, quality, and adherence to contract terms.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for limited competition due to source exclusion.
- Risk of cost escalation via economic price adjustment.
- Long contract duration may not reflect evolving technological needs.
- Lack of small business participation information.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, fl, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.4 million to AVASAR CORP.. AWARD BASIC QUANTITY
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 $15.4 million.
What is the period of performance?
Start: 2009-09-01. End: 2014-12-31.
What was the rationale for excluding specific sources in the 'Full and Open Competition After Exclusion of Sources' process?
The rationale for excluding specific sources typically relates to factors such as past performance, technical capabilities, security clearances, or specific requirements outlined in the solicitation. Without further details from the solicitation or award documentation, it's difficult to pinpoint the exact reasons. However, such exclusions are intended to ensure that only qualified and capable vendors are considered, potentially streamlining the evaluation process while still maintaining a competitive environment.
How effectively does the 'Economic Price Adjustment' clause protect against significant cost increases for taxpayers?
The effectiveness of the Economic Price Adjustment (EPA) clause hinges on the specific index or formula used for adjustment and the prevailing economic conditions. While EPAs are designed to account for legitimate cost fluctuations (e.g., raw material prices, labor costs), poorly defined or overly generous clauses can lead to significant cost increases for the government. Careful monitoring and negotiation of the EPA terms are crucial to ensure it provides fair compensation without unduly burdening taxpayers.
What is the strategic importance of this ammunition contract for the Department of the Army's readiness?
This contract is strategically important as it ensures the consistent availability of essential ammunition, a critical component for military readiness and operational effectiveness. A stable and reliable supply chain for ammunition directly supports training exercises, deployment capabilities, and overall force projection. The duration of the contract suggests a commitment to maintaining adequate stockpiles and supporting ongoing operational tempo, thereby bolstering the Army's ability to execute its mission.
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
Solicitation ID: W52P1J08R0173
Offers Received: 5
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Address: 435 WEST DR, MELBOURNE, FL, 08
Business Categories: 8(a) Program Participant, Category Business, Manufacturer of Goods, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Woman Owned Business
Financial Breakdown
Contract Ceiling: $15,372,255
Exercised Options: $15,372,255
Current Obligation: $15,372,255
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2009-09-01
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2014-03-19
More Contracts from Avasar Corp.
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)