DoD Awards $232M Contract for Ammunition Manufacturing to Global Military Products Inc
Contract Overview
Contract Amount: $232,357,100 ($232.4M)
Contractor: Global Military Products Inc
Awarding Agency: Department of Defense
Start Date: 2022-08-17
End Date: 2024-12-31
Contract Duration: 867 days
Daily Burn Rate: $268.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SAWS RFP 004 155MM NSA REQUIREMENTS
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33607
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $232.4 million to GLOBAL MILITARY PRODUCTS INC for work described as: SAWS RFP 004 155MM NSA REQUIREMENTS Key points: 1. The contract value of $232.36 million is significant for ammunition manufacturing. 2. Global Military Products Inc. is the sole awardee, raising questions about competition. 3. The contract is for ammunition manufacturing, a critical defense sector. 4. The firm fixed price contract type aims to control costs.
Value Assessment
Rating: fair
The award amount of $232.36 million for ammunition manufacturing appears substantial. Benchmarking against similar contracts for large-caliber ammunition is necessary to fully assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, only one awardee was selected, which warrants further investigation into the bidding landscape and price discovery.
Taxpayer Impact: The firm fixed price contract aims to provide cost certainty for taxpayers, but the ultimate value depends on the competitiveness of the bids received.
Public Impact
Ensures supply of critical ammunition for the Department of the Army. Supports defense industrial base capabilities. Potential impact on availability and cost of ammunition for other government agencies or allies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole awardee despite full and open competition.
- Lack of detailed cost breakdown for the $232M award.
- Potential for price escalation over the contract duration.
Positive Signals
- Firm fixed price contract provides cost predictability.
- Award supports critical defense manufacturing.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by military readiness requirements and geopolitical factors. Benchmarks for similar large-caliber ammunition contracts are essential for cost evaluation.
Small Business Impact
The data indicates that small business participation was not a stated factor in this award, and the prime contractor is not identified as a small business. Further analysis is needed to determine if subcontracting opportunities exist for small businesses.
Oversight & Accountability
Oversight will be crucial to ensure Global Military Products Inc. meets delivery schedules and quality standards. The Department of the Army's contracting office is responsible for monitoring performance and managing the contract.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole awardee despite full and open competition.
- Potential for price escalation over contract duration.
- Dependence on a single supplier for critical ammunition.
- Lack of transparency on specific ammunition types and quantities.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $232.4 million to GLOBAL MILITARY PRODUCTS INC. SAWS RFP 004 155MM NSA 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 $232.4 million.
What is the period of performance?
Start: 2022-08-17. End: 2024-12-31.
What was the competitive landscape like for this RFP, given only one awardee was selected under full and open competition?
While the RFP was advertised as full and open, the selection of a single awardee suggests that either only one bid met all requirements, or the evaluation criteria heavily favored a specific proposal. Further details on the number of bids received and the evaluation process would clarify the extent of competition and its impact on price discovery.
How does the per-unit cost of this ammunition compare to industry benchmarks or previous contracts?
Without specific unit cost data or detailed pricing breakdowns, it is difficult to benchmark. The total award value of $232.36 million for an unspecified quantity over two years necessitates a detailed cost analysis against historical data and similar procurements to assess value for money.
What is the potential risk to national security if Global Military Products Inc. fails to meet its delivery obligations?
Failure to meet delivery obligations for ammunition could significantly impact military readiness and operational capabilities. The Department of the Army would need contingency plans, potentially involving other suppliers or expedited production, to mitigate such risks and ensure supply chain continuity.
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: $232,357,100
Exercised Options: $232,357,100
Current Obligation: $232,357,100
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
Start Date: 2022-08-17
Current End Date: 2024-12-31
Potential End Date: 2024-12-31 12:12:00
Last Modified: 2024-12-16
More Contracts from Global Military Products Inc
- Special Ammunition and Weapons System Requirement — $639.8M (Department of Defense)
- Saws RFP 07 155MM HE Complete Requirements — $402.0M (Department of Defense)
- Purchase of Ammunition — $334.2M (Department of Defense)
- Award for Jpeo A&A — $118.4M (Department of Defense)
- Saws RFP 003 Requirements — $88.9M (Department of Defense)
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)