DoD's $61M fire protection contract for Lake City Army Ammunition Plant awarded to Olin Winchester LLC

Contract Overview

Contract Amount: $61,052,344 ($61.1M)

Contractor: Olin Winchester LLC

Awarding Agency: Department of Defense

Start Date: 2021-05-28

End Date: 2027-04-11

Contract Duration: 2,144 days

Daily Burn Rate: $28.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INSTALLATION OF FIRE PROTECTION SYSTEMS IN THE AREAS OF THE AMMUNITION MANUFACTURING BUILDINGS 1, 2 & 3 THAT CURRENTLY DO NOT HAVE A WET OR DRY FIRE SPRINKLER SYSTEMS. THIS IS IN SUPPORT OF LAKE CITY ARMY AMMUNITION PLANT (LCAAP).

Place of Performance

Location: INDEPENDENCE, JACKSON County, MISSOURI, 64056

State: Missouri Government Spending

Plain-Language Summary

Department of Defense obligated $61.1 million to OLIN WINCHESTER LLC for work described as: INSTALLATION OF FIRE PROTECTION SYSTEMS IN THE AREAS OF THE AMMUNITION MANUFACTURING BUILDINGS 1, 2 & 3 THAT CURRENTLY DO NOT HAVE A WET OR DRY FIRE SPRINKLER SYSTEMS. THIS IS IN SUPPORT OF LAKE CITY ARMY AMMUNITION PLANT (LCAAP). Key points: 1. Contract addresses critical safety needs for ammunition manufacturing facilities. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Long performance period (2021-2027) indicates a significant, ongoing project. 4. Fixed-price contract type aims to control costs for the government. 5. Focus on installation of fire sprinkler systems highlights infrastructure improvement. 6. The North American Industry Classification System (NAICS) code 332992 points to the manufacturing of small arms ammunition.

Value Assessment

Rating: good

The total contract value of $61,052,344.17 for fire protection systems at the Lake City Army Ammunition Plant appears reasonable given the scope of work. While direct comparisons are difficult without specific project details, the duration of the contract (over 5 years) and the critical nature of fire suppression in an ammunition manufacturing environment justify a substantial investment. The firm fixed-price structure provides cost certainty for the government, mitigating risks associated with potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources.' While the 'exclusion of sources' phrasing might initially suggest limitations, in the context of federal contracting, it often refers to a specific process where initial solicitations might have excluded certain types of entities or approaches, but the final award was made after a broad competitive process. The fact that it's 'full and open' implies that multiple bidders were likely considered, leading to a more competitive price discovery.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovative solutions from a wider range of potential contractors.

Public Impact

The primary beneficiaries are the personnel working at the Lake City Army Ammunition Plant, ensuring a safer working environment. The contract delivers essential fire protection infrastructure, specifically wet or dry fire sprinkler systems. The geographic impact is localized to the Lake City Army Ammunition Plant in Missouri. Workforce implications include potential job creation for installation and maintenance personnel in the construction and specialized systems sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays in installation impacting operational readiness.
Ensuring compliance with stringent safety and environmental regulations during installation.
Long-term maintenance costs for the new fire protection systems.

Positive Signals

Enhances safety and reduces risk of catastrophic fire at a critical defense facility.
Modernizes infrastructure, potentially improving operational efficiency and reliability.
Award to a known entity (Olin Winchester) may indicate a level of trust and established relationship for critical infrastructure.

Sector Analysis

The defense industrial base, particularly facilities involved in munitions manufacturing, requires robust safety and security infrastructure. This contract falls within the broader construction and specialized industrial systems sector. Spending on facility upgrades and safety systems is a common and necessary component of maintaining readiness and operational capability within defense manufacturing. Comparable spending benchmarks would typically be found within large-scale industrial construction and safety system installation projects for government facilities.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this specific contract (sb: false). However, the prime contractor, Olin Winchester LLC, may engage small businesses for subcontracting opportunities related to specialized installation, materials, or support services. The impact on the small business ecosystem would depend on the extent of any subcontracting awarded.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are embedded in the firm fixed-price structure, which incentivizes the contractor to complete work within budget. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction for investigating any potential fraud, waste, or abuse.

Related Government Programs

Department of Defense Fire Prevention Programs
Army Ammunition Plant Modernization Projects
Industrial Safety Systems Contracts
Defense Manufacturing Infrastructure Upgrades

Risk Flags

Potential for cost overruns if material/labor costs escalate significantly over the contract duration.
Risk of performance issues or delays due to the extended timeline.
Ensuring the installed systems meet evolving safety standards and technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.1 million to OLIN WINCHESTER LLC. INSTALLATION OF FIRE PROTECTION SYSTEMS IN THE AREAS OF THE AMMUNITION MANUFACTURING BUILDINGS 1, 2 & 3 THAT CURRENTLY DO NOT HAVE A WET OR DRY FIRE SPRINKLER SYSTEMS. THIS IS IN SUPPORT OF LAKE CITY ARMY AMMUNITION PLANT (LCAAP).

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 $61.1 million.

What is the period of performance?

Start: 2021-05-28. End: 2027-04-11.

What is the track record of Olin Winchester LLC in performing similar fire protection system installations for the Department of Defense?

Olin Winchester LLC, as a major defense contractor, has a significant history with the Department of Defense, particularly concerning ammunition manufacturing. While specific details on their fire protection system installation track record require deeper database searches, their role as the contractor for the Lake City Army Ammunition Plant suggests a familiarity with the site's operational needs and safety requirements. Their broader experience in managing complex industrial facilities and defense production likely includes adherence to stringent safety protocols and infrastructure management. Further analysis would involve reviewing past performance evaluations and contract histories related to facility maintenance and safety systems within DoD contracts to fully assess their capabilities in this specific area.

How does the per-unit cost or scope of this contract compare to similar fire protection system installations in other government facilities?

Direct per-unit cost comparisons for fire protection system installations are challenging due to significant variations in facility size, complexity, existing infrastructure, and specific system requirements (e.g., wet vs. dry systems, specialized hazard mitigation). The total value of $61 million over approximately six years for the Lake City Army Ammunition Plant suggests a substantial undertaking. Benchmarking would require identifying contracts with similar scope (e.g., large industrial facilities, ammunition plants) and similar system types. Without access to detailed cost breakdowns and comparable project data, a precise value-for-money assessment against market rates is difficult. However, the firm fixed-price nature of this contract provides a degree of cost control for the government.

What are the primary risks associated with the long performance period (2021-2027) for this fire protection system installation contract?

The extended performance period presents several potential risks. Firstly, there's the risk of scope creep, where additional requirements or modifications might be requested over time, potentially increasing costs if not managed contractually. Secondly, material and labor costs could fluctuate significantly over a six-year period, impacting the contractor's profitability and potentially leading to claims if not adequately accounted for in the fixed-price agreement. Thirdly, technological advancements in fire protection systems could emerge, making the installed systems less cutting-edge by the end of the contract term. Finally, contractor performance degradation over a long period is a possibility, necessitating robust oversight and performance management from the Army.

What is the expected effectiveness of the installed fire protection systems in mitigating risks within ammunition manufacturing buildings?

The installation of wet or dry fire sprinkler systems is a standard and highly effective method for mitigating fire risks in industrial settings, especially those involving combustible materials like those found in ammunition manufacturing. These systems are designed to detect and suppress fires in their early stages, significantly reducing the likelihood of catastrophic damage, loss of life, and operational downtime. The effectiveness is contingent upon proper design, installation according to relevant codes (e.g., NFPA standards), regular maintenance, and the specific fire hazards present in Buildings 1, 2, and 3. Given the critical nature of ammunition production, these systems are expected to provide a substantial improvement in safety and risk reduction.

How has historical spending on fire protection and infrastructure at the Lake City Army Ammunition Plant trended, and does this contract represent an increase or decrease?

Analyzing historical spending trends for fire protection and infrastructure at the Lake City Army Ammunition Plant (LCAAP) requires access to historical contract databases and budget allocations specific to LCAAP. This $61 million contract represents a significant, targeted investment in upgrading critical safety infrastructure. Without prior data, it's difficult to definitively state if it's an increase or decrease relative to past spending patterns. However, the explicit mention of installing systems in areas that 'currently do not have a wet or dry fire sprinkler system' suggests a proactive effort to address existing gaps, potentially indicating a shift towards enhanced safety investments rather than routine maintenance spending.

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: $61,052,344

Exercised Options: $61,052,344

Current Obligation: $61,052,344

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