Department of Defense awards $10.8M for miscellaneous initiatives under existing base contract for small arms ammunition

Contract Overview

Contract Amount: $10,882,734 ($10.9M)

Contractor: Olin Winchester LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-24

End Date: 2026-09-30

Contract Duration: 2,197 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PURPOSE OF DO IS THE AWARD OF MISCELLANEOUS INITIATIVES UNDER THE LCAAP BASE CONTRACT W52P1J-19-D-0085. IMMEDIATE ACTION IS TO FUND PWS 18 OF THE BASE CONTRACT BASED ON DO 0002 OF ATTACHMENT 0036.

Place of Performance

Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $10.9 million to OLIN WINCHESTER LLC for work described as: PURPOSE OF DO IS THE AWARD OF MISCELLANEOUS INITIATIVES UNDER THE LCAAP BASE CONTRACT W52P1J-19-D-0085. IMMEDIATE ACTION IS TO FUND PWS 18 OF THE BASE CONTRACT BASED ON DO 0002 OF ATTACHMENT 0036. Key points: 1. Contract focuses on funding specific tasks under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 2. The award represents a delivery order against a pre-existing base contract, suggesting continuity and established vendor relationships. 3. Competition was conducted under 'full and open competition after exclusion of sources,' indicating a specific justification for limiting initial competition. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The contract duration extends over several years, indicating a long-term need for these miscellaneous initiatives. 6. The primary contractor, Olin Winchester LLC, is involved in Small Arms Ammunition Manufacturing. 7. The contract is managed by the Department of the Army.

Value Assessment

Rating: fair

The provided data focuses on a single delivery order against a base contract, making direct value-for-money assessment challenging without broader context. The firm fixed-price nature is a positive indicator for cost control. However, the 'exclusion of sources' in the competition method raises questions about whether the best possible pricing was achieved for this specific order. Benchmarking against similar miscellaneous initiative awards under IDIQ contracts would be necessary for a more robust 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 specific designation implies that while the initial base contract may have been competed broadly, this particular delivery order might have had a more restricted competitive process, potentially excluding certain types of sources or requiring specific justifications. The data does not specify the number of bidders for this delivery order, making it difficult to assess the intensity of competition.

Taxpayer Impact: The 'exclusion of sources' aspect warrants further scrutiny to ensure that taxpayer funds were used efficiently and that the most competitive pricing was secured for this specific delivery order.

Public Impact

The primary beneficiary is the Department of the Army, which will receive services or goods related to miscellaneous initiatives. The contract supports ongoing operations and potentially the development or sustainment of small arms ammunition capabilities. The geographic impact is centered in Missouri, where Olin Winchester LLC is located. Workforce implications are likely within the defense manufacturing sector, specifically related to ammunition production and related support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' in the competition method requires further investigation to ensure full market potential was leveraged.
Lack of specific details on the 'miscellaneous initiatives' makes it difficult to assess the true necessity and value of the funded tasks.
The long contract duration (over 6 years) could lead to cost inefficiencies if not actively managed and reviewed.

Positive Signals

The use of a Firm Fixed Price contract type transfers cost overrun risk to the contractor.
The award is against an existing base contract, suggesting a streamlined process and potentially pre-negotiated favorable terms.
Olin Winchester LLC is an established entity in the Small Arms Ammunition Manufacturing sector, implying relevant expertise.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on ammunition manufacturing and related support services. The market for small arms ammunition is dominated by a few key manufacturers, often with long-standing relationships with the Department of Defense. Spending in this area is driven by military readiness requirements and operational tempo. Comparable spending benchmarks would involve analyzing other delivery orders under similar IDIQ contracts for ammunition or related defense articles.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the primary contractor is not a small business. There is no explicit information on subcontracting plans for small businesses within this specific delivery order. Therefore, the direct impact on the small business ecosystem from this particular award appears limited, though the prime contractor's overall subcontracting practices would need separate analysis.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency is facilitated by contract award databases, though detailed PWS (Performance Work Statement) specifics for the 'miscellaneous initiatives' may be less public. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Small Arms Ammunition
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts
Department of the Army Procurement
Defense Manufacturing Contracts
Base Contract Modifications

Risk Flags

Competition Method Justification
Lack of Specific Deliverables Detail
Long Contract Duration Risk
Potential for Price Increase due to Source Exclusion

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.9 million to OLIN WINCHESTER LLC. PURPOSE OF DO IS THE AWARD OF MISCELLANEOUS INITIATIVES UNDER THE LCAAP BASE CONTRACT W52P1J-19-D-0085. IMMEDIATE ACTION IS TO FUND PWS 18 OF THE BASE CONTRACT BASED ON DO 0002 OF ATTACHMENT 0036.

Who is the contractor on this award?

The obligated recipient is OLIN WINCHESTER 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 $10.9 million.

What is the period of performance?

Start: 2020-09-24. End: 2026-09-30.

What specific 'miscellaneous initiatives' are being funded under PWS 18 of the base contract?

The provided data does not detail the specific 'miscellaneous initiatives' covered under PWS 18. The purpose is stated as 'the award of miscellaneous initiatives under the LCAAP Base Contract W52P1J-19-D-0085.' To understand the value and necessity of this $10.8 million delivery order, a review of the Performance Work Statement (PWS) for PWS 18 would be required. This would likely outline the scope of work, deliverables, and objectives for these initiatives, which could range from research and development tasks, minor equipment upgrades, specialized testing, or logistical support related to small arms ammunition.

How does the $10.8 million award compare to historical spending on similar miscellaneous initiatives under this base contract?

Assessing this $10.8 million award against historical spending requires access to the complete contract history for W52P1J-19-D-0085, including all previous delivery orders and modifications. Without this data, it's impossible to determine if this is a typical, increased, or decreased level of funding for miscellaneous initiatives. Analyzing the frequency and value of past delivery orders for similar tasks would provide context. If this is a significant increase, it might indicate a new or expanded requirement, while a decrease could suggest a winding down of such activities or a shift in funding priorities.

What are the specific risks associated with Olin Winchester LLC's performance on this contract?

Potential risks associated with Olin Winchester LLC's performance could include supply chain disruptions affecting ammunition components, manufacturing quality control issues, or delays in delivering the specific 'miscellaneous initiatives.' Given their specialization in Small Arms Ammunition Manufacturing, risks might also relate to adherence to stringent military specifications and safety protocols. The long contract duration (ending Sept 2026) increases the potential for unforeseen challenges, such as changes in raw material costs or evolving technological requirements. A review of their past performance ratings and any documented issues on previous government contracts would offer further insight into their risk profile.

What is the strategic importance of these 'miscellaneous initiatives' to the Department of the Army's mission?

The strategic importance of these 'miscellaneous initiatives' is not explicitly defined in the provided data. However, as they fall under a base contract for Small Arms Ammunition Manufacturing and are awarded by the Department of the Army, they likely support readiness, modernization, or sustainment efforts related to infantry weapons. These initiatives could be crucial for maintaining the effectiveness of existing ammunition stockpiles, testing new materials or designs, improving production processes, or ensuring the logistical readiness of ammunition supply chains. Understanding the specific PWS would clarify their direct contribution to the Army's overall mission objectives.

What does the 'full and open competition after exclusion of sources' designation imply for cost-effectiveness?

The designation 'full and open competition after exclusion of sources' suggests that while the initial base contract (W52P1J-19-D-0085) likely underwent broad competition, this specific delivery order (DO 0002) may have been restricted based on certain criteria or justifications. This could mean that only a subset of potential offerors were eligible, or that specific sources were excluded for reasons outlined in the Federal Acquisition Regulation (FAR). While it aims to ensure fair opportunity, if the exclusion significantly limits the number of bidders, it could potentially lead to higher prices compared to a truly unrestricted full and open competition. A thorough justification for the exclusion is typically required and should be reviewed to ensure cost-effectiveness was prioritized.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Olin Corporation

Address: 25201 E 78 HWY, INDEPENDENCE, MO, 64056

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,882,734

Exercised Options: $10,882,734

Current Obligation: $10,882,734

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J19D0085

IDV Type: IDC

Timeline