Colt Defense Awarded $212M M4 Contract

[UWone77]

Looks like someone is pulling Colt's stones out of the bankruptcy fire.

From the Department of Defense:

http://www.defense.gov/News/Contracts/Contract-View/Article/620608


Colt Defense LLC (http://www.colt.com), West Hartford, Connecticut (15QKN-15-D-0102); and FN America LLC, Columbia, South Carolina (W15QKN-15-D-0072), were awarded a $212,000,000 firm-fixed-price multi-year contract for M4 and M4A1 carbines for the Army and others, with an estimated completion date of Sept. 24, 2020. Bids were solicited via the Internet with six received. Funding and work location will be determined with each order. Army Contracting Command, Picatinny Arsenal, New Jersey, is the contracting activity.

[DutyUse]

Thanks for posting. I hadn't read this yet.

Im quite surprised the government decided to bail them out. I guess this means my hopes for cheap Colt .mil parts is dashed

[Joelski]

Why not? They handed out bailout money to GM, Chrysler, and various wall street companies. It's good to have one of the most prolific suppliers on the hook.

[Eric]

Colt Defense LLC, West Hartford, Connecticut (15QKN-15-D-0102); and FN America LLC, Columbia, South Carolina (W15QKN-15-D-0072), were awarded a $212,000,000 firm-fixed-price multi-year contract for M4 and M4A1 carbines for the Army and others, with an estimated completion date of Sept. 24, 2020. Bids were solicited via the Internet with six received. Funding and work location will be determined with each order. Army Contracting Command, Picatinny Arsenal, New Jersey, is the contracting activity.

I see FN will get in on the action as well.

It will be interesting to see if civilian production will be affected at all. I know they claim to run them on different lines, but the commonality is substantial. Pricing and availability for Colts is currently the best it's been in about forever.

[GOST]

Did the Morongo tribe end up purchasing Colt? If they did being a minority-owned company would have helped with contracts.

http://www.usatoday.com/story/money/business/2015/07/09/morongo-tribe-colt-firearm/29909387/

[gatordev]

I'm trying to figure out why you guys are calling this a bail out. Colt was still doing business day to day, and in this case, they were awarded a contract, just like any other day. Definitely good news for Colt, but apparently Colt and FN just had the best contract terms.

[Thompson]

Hmmm this will be interesting to see how things play out. Didn't realize FN's contract was up.


I'm trying to figure out why you guys are calling this a bail out. Colt was still doing business day to day, and in this case, they were awarded a contract, just like any other day. Definitely good news for Colt, but apparently Colt and FN just had the best contract terms.
Because I believe they filed for bankruptcy back a few months in the summer.

... now if I can get a job at Picatinny Arsenal ...

[gatordev]

Because I believe they filed for bankruptcy back a few months in the summer.

... now if I can get a job at Picatinny Arsenal ...

A bail out (as was hinted at earlier regarding GM) is about buying out the debt. This isn't the case here. It's just another contract that was awarded, which may or may not help with the overall debt problem. The fact that the contract was with the government is just a convenient internet coincidence.

[Joelski]

I was using the term in its simplest context, rather than a financial one. A contract for a company that's on the rocks is a little more meaningful than business as usual. The auto analogy was a bad comparison, but the timing can be viewed as a customer coming to a contractor's aid.

[gatordev]

I gotcha. I think the customer coming to contractor's aid happens more than people realize. Even if the contractor isn't in financial distress. I know of a very specific dispute that was just resolved at work where the disputer got the contract back, and honestly, I think it's probably the best for the customer (Uncle Sam).