M -- AWARD OF FIVE YEAR CONVENTIONAL DEMIL CONTRACT I'm pleased to announce we've jsut made a great stride in our commercial demil program. We have awarded 2 identical 5 year Indefinite Delivery Quantity contracts (DAAA09-99-D-0003 and DAAA09-99-D-0004) on 12 May 99 with a total value of over $300M. These contracts were awarded to General Dynamics Ordnance Systems and (Parsons Brinckerhoff)PB/NAMMO Demil LLC and are for demil of 9 families of conventional ammunition. These families include Pyrotechnics, Bombs, HE Cartridges, Explosive D, ICM, Bulk Propellant, Prop Charges, Fuzes and Small Cal Ammo. Out of the 31 primary munitions families, these 9 represent 58% of the assets (STONS) in the stockpile. The first delivery order is issued for start up and demil of a fixed number of assets specified in the solicitation. These awarded delivery orders total $60.7MIL. For years 2 through 5, all asset demil orders will be competed between the two contractors. Each of the two contractors will receive between 30 and 70 percent of the total assets. This contractural arrangement gives the Army the ability to effectively, efficiently execute the commercial demil program for the next 5 years. During the course of this acquisition, we have utilized and incorporated a number of acquisition reform initiatives. Point of Contact is Mr. Emil Maslanka (309) 782-3420 Posted 05/20/99 (W-SN333713).

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