Muttling
Posts: 1612
Joined: 9/30/2007 Status: offline
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As a government contractor, I can shed some understanding on this contract to those who are willing to listen instead of wear tin foil hats...... IDIQ contracts such as this one aren't uncommon. They are a way for the government to set up bargain prices for things they need in large quantity, but have trouble giving a single large order to obtain. An IDIQ contract creates a list of items they can purchase as needed at prices set by the contract and gives an overall not to exceed amount for the contract. You can bet this contract includes pricing for a LOT more than just .40 caliber rounds. My guess is the IF the entire contract value was just spent on .40 caliber rounds it would give the numbers quoted. In reality, the government has put out for bid pricing on a bunch of small items under a single IDIQ contract and will purchase a wide variety of those items instead of sinking all of the funding into .40 caliber PISTOL rounds. What's more, it's unlikely that the contract will be funded to it's limit as the government seldom purchases the full amount allowed under IDIQ contracts. When you buy in massive bulk and try to deal with Federal procurement requirements (e.g. have to shop like the Federal government), it's a stupid waste of money to buy ammunition and other cheap items in quantities that are less than 1000 units (or sometimes 10,000 units) at a time. The IDIQ contract is a way for individual organizations in the government to buy small amounts of things like ammunition while still getting the cost savings of buying in bulk prices. I know it's not advertised in the press, but the Government DOES do a good job of shopping around for bargain prices on many things. It's the things they screw up and pay way too much for that make the news instead. Trust me when I say that the U.S. Government knows how to get small arms ammunition (e.g. pistol, rifle, and shotgun rounds) at bargain basement prices.
< Message edited by Muttling -- 3/30/2012 3:23:06 PM >
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