DoD Awards $88.9M Ammunition Contract to Global Military Products Inc. for 653 Days

Contract Overview

Contract Amount: $88,909,344 ($88.9M)

Contractor: Global Military Products Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-17

End Date: 2024-05-31

Contract Duration: 653 days

Daily Burn Rate: $136.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: SAWS RFP 003 REQUIREMENTS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $88.9 million to GLOBAL MILITARY PRODUCTS INC for work described as: SAWS RFP 003 REQUIREMENTS Key points: 1. Contract awarded for ammunition manufacturing, a critical defense sector. 2. Global Military Products Inc. is the sole awardee for this delivery order. 3. The contract duration is 653 days, indicating a medium-term supply need. 4. The award value of $88.9M is significant for this specific ammunition category.

Value Assessment

Rating: fair

The contract value of $88.9M for 653 days suggests a substantial but not exceptionally high per-diem spending rate. Benchmarking against similar ammunition contracts would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically promotes competitive pricing. However, this is a delivery order, so the initial solicitation and award process for the parent contract are key to understanding price discovery.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received a fair price, but the specific savings achieved through competition are not detailed here.

Public Impact

Ensures supply of essential ammunition for military operations. Supports defense industrial base and manufacturing capabilities. Potential impact on availability and cost of ammunition for other government agencies or allies. Highlights the Department of Defense's ongoing procurement needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for supply chain disruptions impacting delivery.
Limited visibility into the specific type of ammunition procured.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type helps control costs.
Longer contract duration may indicate stable demand.

Sector Analysis

This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for ammunition procurement vary widely based on type and quantity, but $88.9M represents a significant investment in this area.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if the prime contractor utilizes small business subcontractors.

Oversight & Accountability

The Department of the Army, under the Department of Defense, is responsible for oversight. The firm fixed price contract type provides some cost control. However, detailed oversight mechanisms and performance monitoring are not specified in the provided data.

Related Government Programs

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

Risk Flags

Potential for supply chain vulnerabilities.
Lack of detailed performance metrics.
Limited visibility into specific ammunition types.
Contractor's capacity over the full duration.
Dependence on a single awardee for this delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.9 million to GLOBAL MILITARY PRODUCTS INC. SAWS RFP 003 REQUIREMENTS

Who is the contractor on this award?

The obligated recipient is GLOBAL MILITARY PRODUCTS 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 $88.9 million.

What is the period of performance?

Start: 2022-08-17. End: 2024-05-31.

What specific types of ammunition are being procured under this contract, and how do their unit costs compare to market benchmarks?

The provided data does not specify the exact types of ammunition. To assess value, a detailed breakdown of the ammunition types (e.g., caliber, explosive fill, guidance systems) and their corresponding unit prices would be required. These prices would then need to be compared against historical DoD procurement data, industry price lists, and competitive bids from similar solicitations to determine if they are reasonable and reflect fair market value.

What are the potential risks associated with Global Military Products Inc. fulfilling this large ammunition contract, given the long duration?

Risks include potential supply chain disruptions for raw materials or components, manufacturing capacity limitations, quality control issues over the extended period, and potential for cost overruns if the firm fixed price contract does not adequately account for inflation or unforeseen production challenges. Geopolitical events or changes in demand could also impact the contractor's ability to deliver consistently.

How effectively does this contract contribute to the Department of Defense's overall ammunition readiness and strategic goals?

This contract contributes to readiness by ensuring a supply of ammunition, a fundamental requirement for military operations. Its effectiveness in meeting strategic goals depends on aligning the procured ammunition types with current and future operational needs, threat assessments, and modernization plans. The long duration suggests a planned, sustained requirement, indicating strategic importance.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2701 N ROCKY POINT DR STE 1070, TAMPA, FL, 33607

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Hispanic American Owned Business, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $88,909,344

Exercised Options: $88,909,344

Current Obligation: $88,909,344

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J22D0007

IDV Type: IDC

Timeline