Army's new $7100 subgun

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  • Alamo

    Grandmaster
    Rating - 100%
    10   0   0
    Oct 4, 2010
    8,094
    113
    Texas

    About the cost:

    The article says it is a $2.5 million contract. Without more detail it's hard to say, but typically for general discussion, press releases, determining the Decision Authority required, etc, a contract's value is the total price of everything in the contract with all options executed. The government is allowed by Congress to actually obligate (a hard decision to purchase) production funds no more than one year in advance. Any planned purchases beyond the next year contained in the contract are only options - the government may or may not execute the options and buy the product in later years (this is one of the things that make government contracts expensive). There is a limit to how many year-options can be on contract, and when I was in, it was five years. So again the total value of the contract would be whatever is paid in the first year for the product itself (in this case, 350 subguns), plus training, spare parts, spare magazines, slings, cases, logistical support, whatever, plus the not-guaranteed options to purchase for the next four years after that.

    The article notes that this contract calls for purchasing 350 upfront with an option to buy (or possibly options totaling to buy) 1000 more. That's 1350 subguns total, for a (probable) total contract price of $2.5M, with brings the cost per gun down to $1852. And again, that total price surely includes training, spares, mags, and other support costs, so the actual unit price for the gun is likely even lower, maybe $1000 each.
     

    Alamo

    Grandmaster
    Rating - 100%
    10   0   0
    Oct 4, 2010
    8,094
    113
    Texas
    The government notice of award: https://www.fbo.gov/index.php?s=opp...f293d0401029cd8052312ec&tab=core&tabmode=list&= (will be archived after 13 April 2019)j.

    Solicitation
    Number:

    W15QKN-18-R-032M


    Notice
    Type:

    Award Notice

    Contract Award
    Date:

    March 29,
    2019

    Contract Award
    Number:
    W15QKN-19-9-P018


    Contract Award
    Dollar Amount:
    $2,575,811.76


    Contractor
    Awarded Name:

    B&T
    USA LLC


    Contractor
    Awarded DUNS:
    070236213


    Contractor
    Awarded Address:
    4532 W Kennedy Blvd Suite 111
    Tampa, Florida 33609-2042
    United
    States


    Synopsis:


    Added: Apr 01, 2019 10:25 am
    Under Section 815
    Other Transaction Agreements (OTA) authority, pursuant to 10 U.S.C. § 2371b(f),
    the U.S. Army Contracting Command - New Jersey, on behalf of Project Manager
    Soldier Weapons, awarded a fixed amount Production-Other Transaction Agreement
    (P-OTA) to:

    B&T USA LLC - Tampa, FL; P-OTA award number: W15QKN-19-9-P018 (award
    03/29/2019)


    The P-OTA is awarded based upon successful completion of the prototype
    project proposed by B&T USA LLC in response to Sub Compact Weapon (SCW)
    Prototype Opportunity Notice: W15QKN-18-R-032M, evaluation of testing results,
    and subsequent updated proposal request letter for Follow-on Production Award.
    The purpose of this P-OTA is to purchase 350 SCWs, with an option for additional
    quantities of up to 1,000 SCWs, with slings, manuals, accessories, and spare
    parts.

    So, yes, $2.6M is the maximum value of the contract, but initially the Army will buy only 350 plus widgets, which will be less than $2.6M.
     

    Hohn

    Master
    Rating - 100%
    1   0   0
    Jul 5, 2012
    4,444
    63
    USA
    About the cost:

    The article says it is a $2.5 million contract. Without more detail it's hard to say, but typically for general discussion, press releases, determining the Decision Authority required, etc, a contract's value is the total price of everything in the contract with all options executed. The government is allowed by Congress to actually obligate (a hard decision to purchase) production funds no more than one year in advance. Any planned purchases beyond the next year contained in the contract are only options - the government may or may not execute the options and buy the product in later years (this is one of the things that make government contracts expensive). There is a limit to how many year-options can be on contract, and when I was in, it was five years. So again the total value of the contract would be whatever is paid in the first year for the product itself (in this case, 350 subguns), plus training, spare parts, spare magazines, slings, cases, logistical support, whatever, plus the not-guaranteed options to purchase for the next four years after that.

    The article notes that this contract calls for purchasing 350 upfront with an option to buy (or possibly options totaling to buy) 1000 more. That's 1350 subguns total, for a (probable) total contract price of $2.5M, with brings the cost per gun down to $1852. And again, that total price surely includes training, spares, mags, and other support costs, so the actual unit price for the gun is likely even lower, maybe $1000 each.

    Learned something new from this, thanks.
     

    Disposable Heart

    Grandmaster
    Rating - 99.6%
    246   1   1
    Apr 18, 2008
    5,805
    99
    Greenfield, IN
    Sensationalist title. As stated earlier, the actual bid is for 1350 guns, accessories, mags, cases, support, ammo and training of not only users but armorers. They are getting a good deal, believe me.

    And for folks saying it's "not $2k" good, I think never fired one and are just looking at on-paper numbers. Very smooth, easy to manage, smaller than your CZ Scorpions and handles very well. Like smoother than an MP5 and CERTAINLY smoother than an MP5k (plus a good deal smaller). I could get my off the rack suit coat and hide it in there without looking weird or bulky. It beats the crap out of a pistol (full auto, magazine capacity, controllability), but isn't as large as a MK18 or similar. I'm a big .300 BLK fan so 9mm carbines/subguns make little sense to me, but this gun really shines as a PDW and if the Hughes Act dies in a horrific fashion, as it should, this would be on my full auto to buy list.
     

    JeepHammer

    SHOOTER
    Rating - 0%
    0   0   0
    Aug 2, 2018
    1,904
    83
    SW Indiana
    On the subject of military contract firearms...
    During the first gulf war and early 90s, if a Marine lost or destroyed an M16A4 it was $3,500 dent in your wallet.

    I've heard from current vets that an M4 is somewhere between $4,500 and $5,000

    Those are high volume production rifles, and prices go down with volume, up with lack of volume.

    If it passed military proving ground testing, it's TOUGH.
    If the special operators passed it it's accurate & reliable, and must be easier to conceal & deploy, they use what works.
    No 'Tacti-Cool' idiots in those guys.
     
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