DoD's $160M contract for ammunition manufacturing awarded to General Dynamics-OTS, Inc. with no competition

Contract Overview

Contract Amount: $160,435,760 ($160.4M)

Contractor: General Dynamics-Ots, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-06

End Date: 2010-06-30

Contract Duration: 1,881 days

Daily Burn Rate: $85.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200508!003150!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0001 ! !20050506!20120630!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!29650!013!05!HAMPTON !CALHOUN !ARKANSAS !+000007375549!N!N!000000000000!1340!ROCKETS, ROCKET AMMUNITION & ROCKET COMPS !A6 !AMMUNITION !000 !* !332993!A!A!5!A!S! ! ! !20200930!B! ! !A! !C!N!J!1!001!N!3A!A!Y!A! ! !N!C!N! ! ! !A!Z!A!A!000!A!C!Y! ! ! !Y! ! !0001! !

Place of Performance

Location: HAMPTON, CALHOUN County, ARKANSAS, 71744

State: Arkansas Government Spending

Plain-Language Summary

Department of Defense obligated $160.4 million to GENERAL DYNAMICS-OTS, INC. for work described as: 200508!003150!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0001 ! !20050506!20120630!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!29650!013!05!HAMPTON !CALH… Key points: 1. The contract value of $160.4 million represents a significant investment in ammunition production. 2. The sole awardee, General Dynamics-OTS, Inc., suggests a lack of competitive bidding for this requirement. 3. The contract duration of over 5 years indicates a long-term need for these services. 4. The 'NOT COMPETED' status raises questions about potential cost efficiencies and market fairness. 5. The product service code '1340' points to a critical defense supply chain component: rockets and ammunition. 6. Awarded by the Department of the Army, this contract directly supports military readiness.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without competitive data. The total award amount of $160.4 million over approximately 5 years suggests an average annual spend of around $32 million. Given the 'NOT COMPETED' status, it's difficult to assess if this represents fair market value or if alternative suppliers could have offered better pricing. Without comparable contracts or a competitive bidding process, a definitive value-for-money assessment is limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicated by 'NOT COMPETED'. This means that only one vendor, General Dynamics-OTS, Inc., was considered for the award. The absence of a competitive process limits the government's ability to explore various pricing structures and potentially achieve lower costs through bidding. It also suggests that either there were no other capable sources or the government did not solicit them.

Taxpayer Impact: A sole-source award means taxpayers may not be benefiting from the cost savings that typically arise from a competitive bidding environment. The government may have paid a premium due to the lack of competing offers.

Public Impact

The primary beneficiaries are the U.S. Army and potentially other branches of the Department of Defense, ensuring a supply of critical ammunition. The contract delivers essential services related to the manufacturing of rockets, rocket ammunition, and rocket components. The geographic impact is centered around the contractor's facility in Burlington, Vermont, and potentially impacts the Arkansas region where the facility is located. This contract supports jobs within the defense manufacturing sector, specifically at General Dynamics-OTS, Inc. facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce the incentive for contractors to innovate or improve efficiency.
Dependence on a single supplier could create supply chain vulnerabilities.
Limited transparency in pricing due to the absence of competitive bids.

Positive Signals

Ensures a consistent and reliable supply of critical ammunition for defense needs.
Leverages the specialized capabilities and established production lines of General Dynamics-OTS, Inc.
Supports a key defense contractor and associated workforce.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on the manufacturing of ammunition. The market for defense ammunition is characterized by high barriers to entry due to specialized technology, stringent quality control, and long-term government relationships. Spending in this area is driven by military readiness requirements and geopolitical factors. Comparable spending benchmarks would typically involve other large-scale ammunition production contracts awarded by the DoD.

Small Business Impact

There is no indication of a small business set-aside for this contract, and the prime contractor is a large business. Subcontracting opportunities for small businesses may exist, but the primary award does not prioritize small business participation. The impact on the small business ecosystem is likely indirect, through potential subcontracting relationships rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures would include performance monitoring, quality assurance checks, and adherence to contract terms. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Ammunition Procurement
Army Combat Ammunition Systems
Missile and Rocket Systems Manufacturing
Defense Industrial Base Manufacturing

Risk Flags

Lack of Competition
Potential for Overpricing
Supply Chain Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $160.4 million to GENERAL DYNAMICS-OTS, INC.. 200508!003150!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0001 ! !20050506!20120630!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!29650!013!05!HAMPTON !CALHOUN !ARKANSAS !+000007375549!N!N!000000000000!1340!ROCKETS, ROCKET AMMUNITION & ROCKET COMPS !A6 !AMMUNITION !000 !* !332993!A!A!5!A!S! ! ! !202

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS-OTS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $160.4 million.

What is the period of performance?

Start: 2005-05-06. End: 2010-06-30.

What is the historical spending pattern for this specific contract vehicle or similar ammunition requirements by the Department of the Army?

Analyzing historical spending for this specific contract vehicle (W31P4Q05D0001) reveals a total award value of $160,435,759.84, spanning from May 6, 2005, to June 30, 2010. This indicates a consistent, albeit non-competitive, allocation of funds for ammunition manufacturing over this period. Without access to prior contract numbers for the same requirement or detailed historical data on similar ammunition procurements, a broader historical spending pattern comparison is limited. However, the duration and value suggest a sustained need for these specific types of munitions within the Army's inventory management.

What specific types of rockets, rocket ammunition, and components are covered under this contract?

The contract specifies Product Service Code (PSC) 1340, which broadly covers 'Rockets, Rocket Ammunition & Rocket Components.' While the data does not detail the exact specifications of each item, this classification typically includes a range of ordnance such as artillery rockets, mortar rounds, missile components, and associated warheads or propellants. The award to General Dynamics Armament and, subsequently, General Dynamics-OTS, Inc. suggests a focus on manufactured munitions rather than raw materials or assembly services alone. Further details on specific munition types would likely be found in the contract's statement of work or technical exhibits, which are not publicly available in this dataset.

What are the specific performance metrics or quality standards required for the ammunition produced under this contract?

The provided data does not explicitly detail the performance metrics or quality standards for the ammunition produced. However, contracts for military ordnance typically include rigorous specifications related to reliability, accuracy, shelf-life, safety, and operational effectiveness. These standards are usually defined in detailed technical exhibits and quality assurance clauses within the contract. General Dynamics-OTS, Inc., as a defense contractor, is expected to adhere to stringent DoD quality management systems, such as AS9100, and specific military standards (MIL-STD) relevant to ammunition production and testing. Failure to meet these standards would likely result in contract non-compliance actions.

What is the rationale provided for awarding this contract on a sole-source basis?

The data explicitly states 'CT: NOT COMPETED,' indicating a sole-source award. However, the specific rationale or justification for this determination is not provided in the dataset. Typically, sole-source justifications are documented under specific federal acquisition regulations (e.g., FAR Part 6) and can include reasons such as: only one responsible source exists, urgent and compelling needs, or specific national security concerns. Without this documentation, it is impossible to ascertain the government's reasoning for not seeking competitive proposals for this $160 million ammunition contract.

How does the pricing structure (e.g., Firm Fixed Price) compare to industry standards for similar ammunition manufacturing contracts?

This contract is designated as 'PT: FIRM FIXED PRICE,' which means the price is set and not subject to adjustment based on the contractor's cost experience. This pricing structure is common in defense contracting, especially for manufactured goods where the scope of work is well-defined. While a direct comparison to industry standards for similar ammunition contracts is difficult without access to detailed pricing breakdowns and market analysis data, Firm Fixed Price (FFP) contracts generally shift cost risk to the contractor. This can be advantageous for the government if the contractor accurately estimates costs, but it may also lead to higher initial prices compared to cost-reimbursement contracts if the contractor includes significant contingency.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing

Product/Service Code: AMMUNITION AND EXPLOSIVES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: General Dynamics Corp (UEI: 001381284)

Address: 326 IBM ROAD BUILDING 862, WILLISTON, VT, 00

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W31P4Q05D0001

IDV Type: IDC

Timeline