Army Awards $27M for Pistol Ammunition to Olin Winchester, LLC Under Full and Open Competition

Contract Overview

Contract Amount: $26,990,860 ($27.0M)

Contractor: Olin Winchester, LLC

Awarding Agency: Department of Defense

Start Date: 2022-03-28

End Date: 2024-09-30

Contract Duration: 917 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARD FY22 REQUIREMENTS FOR PISTOL FAMILY (.38 CALIBER, .45 CALIBER, AND 9MM M882) AND MODULAR HANDGUN SYSTEM (9MM MHS) AMMUNITION.

Place of Performance

Location: OXFORD, LAFAYETTE County, MISSISSIPPI, 38655

State: Mississippi Government Spending

Plain-Language Summary

Department of Defense obligated $27.0 million to OLIN WINCHESTER, LLC for work described as: AWARD FY22 REQUIREMENTS FOR PISTOL FAMILY (.38 CALIBER, .45 CALIBER, AND 9MM M882) AND MODULAR HANDGUN SYSTEM (9MM MHS) AMMUNITION. Key points: 1. The award focuses on essential pistol ammunition for various calibers, including the Modular Handgun System. 2. Olin Winchester, LLC, a known defense contractor, secured this significant contract. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. This spending supports the Department of the Army's small arms requirements.

Value Assessment

Rating: good

The award amount of $26.99 million for pistol ammunition appears reasonable given the scope and duration of the contract (over 900 days). Benchmarking against similar ammunition procurements would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being used to procure essential ammunition, ensuring readiness for military personnel. The competitive nature of the award aims to optimize cost-effectiveness.

Public Impact

Ensures availability of critical ammunition for U.S. Army operations. Supports domestic manufacturing capabilities for small arms ammunition. Provides necessary resources for training and combat readiness. The contract duration extends into FY24, indicating sustained demand.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price fluctuations in raw materials.
Dependence on a single supplier for this specific award.
Long contract duration could introduce unforeseen logistical challenges.

Positive Signals

Awarded under full and open competition.
Contractor has established experience in ammunition manufacturing.
Firm fixed price contract provides cost certainty.

Sector Analysis

This procurement falls within the defense sector, specifically small arms ammunition manufacturing. Spending benchmarks for ammunition can vary widely based on caliber, quantity, and specific contract terms, but this award represents a significant investment in essential munitions.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). While Olin Winchester, LLC is a large defense contractor, there is no specific information provided regarding subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The Department of the Army is responsible for overseeing this contract. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure compliance and performance.

Related Government Programs

Small Arms Ammunition Manufacturing
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of specific unit cost data for benchmarking.
No explicit mention of small business subcontracting goals.
Potential for supply chain disruptions affecting delivery.
Long contract duration may not reflect evolving ammunition needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.0 million to OLIN WINCHESTER, LLC. AWARD FY22 REQUIREMENTS FOR PISTOL FAMILY (.38 CALIBER, .45 CALIBER, AND 9MM M882) AND MODULAR HANDGUN SYSTEM (9MM MHS) AMMUNITION.

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 $27.0 million.

What is the period of performance?

Start: 2022-03-28. End: 2024-09-30.

What is the projected unit cost for the different types of ammunition being procured under this contract, and how does it compare to historical averages or industry benchmarks?

The provided data does not include specific unit costs for the .38 caliber, .45 caliber, and 9mm M882 ammunition, nor the 9mm MHS ammunition. A detailed cost analysis would require access to the contract's line item details and comparison with historical pricing data for similar ammunition types and quantities procured by the DoD or other government agencies.

What are the specific performance metrics and quality assurance measures included in the contract to ensure the reliability and effectiveness of the ammunition?

The contract details do not explicitly list performance metrics or quality assurance measures. However, standard military specifications and testing protocols for ammunition are typically incorporated into such contracts. The Department of the Army would likely have stringent requirements for lot testing, shelf life, and operational reliability to ensure the ammunition meets combat-ready standards.

How does this award align with the Army's overall ammunition strategy and inventory management, particularly concerning the transition to or continued use of the Modular Handgun System?

This award directly supports the Army's need for current pistol ammunition, including that for the Modular Handgun System (MHS). It suggests a continued reliance on these platforms and their associated ammunition. The procurement strategy likely balances existing inventory needs with the integration of newer systems, ensuring operational readiness across different weapon families.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 33 COUNTY ROAD 166, OXFORD, MS, 38655

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

Financial Breakdown

Contract Ceiling: $26,990,860

Exercised Options: $26,990,860

Current Obligation: $26,990,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J22D0009

IDV Type: IDC

Timeline