DoD Awards $2.55M for Magazine Cartridges to Center Industries Corp, Lacking Competition
Contract Overview
Contract Amount: $2,554,471 ($2.6M)
Contractor: Center Industries Corp
Awarding Agency: Department of Defense
Start Date: 2023-07-19
End Date: 2025-08-31
Contract Duration: 774 days
Daily Burn Rate: $3.3K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: MAGAZINE CARTRIDGES
Place of Performance
Location: WICHITA, SEDGWICK County, KANSAS, 67217
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $2.6 million to CENTER INDUSTRIES CORP for work described as: MAGAZINE CARTRIDGES Key points: 1. Spending of $2.55M on magazine cartridges. 2. Sole-source award to Center Industries Corp. 3. Potential risk due to lack of competition. 4. Sector: Defense (Department of the Army).
Value Assessment
Rating: questionable
The award amount is $2.55M. Without competitive bidding, it's difficult to assess if this price is optimal. Benchmarking against similar contracts for magazine cartridges is necessary to determine fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded on a sole-source basis, indicating a lack of competition. This method may lead to higher prices and reduced innovation as the contractor faces no pressure to offer the best value.
Taxpayer Impact: Taxpayers may be overpaying due to the absence of competitive pricing mechanisms, potentially diverting funds from other critical needs.
Public Impact
Military readiness could be impacted if the cartridges are not procured at the best possible price. Lack of competition may stifle innovation in ammunition technology. Limited transparency in pricing raises concerns about efficient use of taxpayer funds.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Specific product for a defense need
- Defined delivery period
Sector Analysis
This contract falls within the defense sector, specifically for small arms ammunition manufacturing. Spending benchmarks for such items can vary significantly based on quantity, specifications, and geopolitical factors.
Small Business Impact
The data indicates that small business participation was not a factor in this award (sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this procurement.
Oversight & Accountability
The sole-source nature of this award warrants closer oversight to ensure fair pricing and accountability. The Department of Defense should justify the lack of competition and explore future competitive opportunities.
Related Government Programs
- Small Arms Ammunition Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for price gouging
- Limited transparency
- No small business participation noted
Tags
small-arms-ammunition-manufacturing, department-of-defense, ks, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.6 million to CENTER INDUSTRIES CORP. MAGAZINE CARTRIDGES
Who is the contractor on this award?
The obligated recipient is CENTER INDUSTRIES CORP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $2.6 million.
What is the period of performance?
Start: 2023-07-19. End: 2025-08-31.
What is the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves factors such as unique capabilities of the contractor, urgent need, or lack of adequate competition. Without specific details from the Department of Defense, it's impossible to confirm the exact reason. However, sole-source contracts often raise concerns about potential overpricing and reduced innovation compared to competitive procurements.
How does the $2.55M price compare to industry benchmarks for similar magazine cartridges?
Benchmarking the $2.55M price against industry standards for similar magazine cartridges is crucial for assessing value. Without access to competitive bids or market research data, it's difficult to determine if this price is fair. A lack of competition can lead to prices that are higher than what could be achieved through a competitive process.
What is the potential impact on military readiness if these cartridges are not procured at the most cost-effective price?
Procuring essential items like magazine cartridges at inflated prices due to a lack of competition can negatively impact military readiness. It means taxpayer funds are not being used as efficiently as possible, potentially limiting the quantity of supplies that can be acquired or diverting funds from other critical readiness initiatives.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms Ammunition Manufacturing
Product/Service Code: WEAPONS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 2505 S CUSTER ST, WICHITA, KS, 67217
Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Manufacturer of Goods, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,554,471
Exercised Options: $2,554,471
Current Obligation: $2,554,471
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SPRDL118D0124
IDV Type: IDC
Timeline
Start Date: 2023-07-19
Current End Date: 2025-08-31
Potential End Date: 2025-08-31 00:00:00
Last Modified: 2026-01-21
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