Colt Puts Kibosh on Army’s Remington M4 Contract. For Now

There were probably a few champagne corks a-popping in Ilion a few months back when the Army announced that they’d be moving the bulk of their M4 purchases from Colt to Remington. But the Connecticut gun maker did what any self-respecting government contractor would do when faced with the prospect of  losing a major chuck of business; they put their attorneys to work trying to get the decision overturned. And gearscout.com is reporting that the word from the bureaucratic battlefield is: mission accomplished . . .

The Government Accountability Office has upheld Colt Defense, LLC’s protest of the Department of the Army’s $84 million contract award to Remington Defense to produce up to 120,000 M4 and M4A1 carbines. This means the contract award could be slowed, reevaluated or entirely recompeted based on the Army’s response to the ruling.

Now the Freedom Group brain trust is dealing with a painful and frustrating case of contractus interruptus. What was wrong with the Remington award?

“Colt’s protest was based on the manner in which the Army evaluated the competing bids it received,” says Jeffrey G. Grody, Senior Vice President and General Counsel, Colt Defense LLC.

The sticking point: pricing. In a convoluted sort of way.

At issue is the way the Army calculated the licensing fee Colt is due as part of the original M16 contract signed in 1967 and amended in 1997. Looking at the 2011 solicitation, the  Army calls out a blanket 5 percent “royalty amount pursuant to a license agreement” between Colt and the U.S. government in section M.5.2.3. The terms of the actual licensing agreement are not known, but sources explain the royalty calculations are more complex than can be covered by a blanket percentage and when calculated properly, could narrow the price gap between Colt’s and Remington’s bids.

Holy technicality, Batman! (If you’re having a slow day at work, read this for a little background on the whole M16 1967/1997 agreement between Colt and the army on the M4.)

Now the Army has three options; they can reevaluate the submitted bids, taking the GAO’s revised pricing calculations into account, they can alter the original contract terms and request new bids or they can just tell the GAO to pound sand and buy the rifles from Remington anyway. How can they do that? As Emily Dickinson might have put it, the GAO’s finding isn’t binding.

Meanwhile, interested parties in Ilion will be on the edge of their collective seat waiting to see if and when they can crank up production while their lawyers go blind burning the midnight oil and looking for an appropriate comeback. Just another day in the military procurement bidness. Hooah!

comments

  1. avatar jwm says:

    when you look behind the scenes to see how things get done, you’re stuck wondering how do things get done.

    1. avatar Steven says:

      If Christopher Walken was president, he’d put one one pant leg on at a time, and then he’d make gold records.

  2. avatar BlinkyPete says:

    I’m stunned that the army is paying $700 per rifle… that’s basically wholesale, and I don’t know of anyone else that’s buying 120,000 rifles.

  3. avatar Aharon says:

    Way to go Colt! I’m so anti-Freedom Group for what they have done to Marlin and others that any move against the FG will get me to cheer.

    1. avatar Phil says:

      Right, because Colt is such a stand up company…

      1. avatar Aharon says:

        Never said Colt was a stand up company.

        1. avatar Dave says:

          I hate Colt. They keep forcing their crap on our soldiers, and the idiots at Colt are even shooters! None of them at the board of directors level can shoot worth a damn, or take classes from training facilities! I wish the gov. would buck Colt the hell off, and go to Daniel Defense, Spikes, or Bravo Company.

          What the hell is taking so long? Get rid of Colt! How long is the damn contract? 80 years? Holy shit.

  4. avatar Ralph says:

    The only fair way to settle this dispute is a shoot-out with live ammo and live targets. Oh, and don’t forget to invite Karl Lippard.

    1. avatar Sid says:

      Only if he uses his 1911 at 400 yards.

  5. avatar Steve says:

    Why does it look like there is a Flashlight screwed into the muzzle of that rifle in the picture?

    1. avatar Phil says:

      Its a new type of flash suppressor… anyone? Anyone? Yeah that was lame.

      1. avatar jwm says:

        it’s the redesign that does away with the muffler bearings.

        1. avatar Moonshine7102 says:

          I hear it requires a special type of canuter valve, though.

    2. avatar Aharon says:

      It’s a blender to make fruit smoothies.

  6. avatar Accur81 says:

    Is that monstrosity a piston gun?

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