DoD awards $160M for rockets and ammunition to General Dynamics, facing limited competition
Contract Overview
Contract Amount: $160,210,181 ($160.2M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-03-24
End Date: 2011-05-31
Contract Duration: 1,894 days
Daily Burn Rate: $84.6K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200608!002568!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0004 ! !20060324!20120630!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!29650!013!05!HAMPTON !CALHOUN !ARKANSAS !+000165304414!N!N!000000000000!1340!ROCKETS, ROCKET AMMUNITION & ROCKET COMPS !A6 !AMMUNITION !000 !NOT DISCERNABLE !332993!A!A!5!A!S! ! ! !99990909!B! ! !A! !C!N!J!1!001!N!3A!A!Y!A! ! !N!C!N! ! ! !Z!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 $160.2 million to GENERAL DYNAMICS-OTS, INC. for work described as: 200608!002568!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0004 ! !20060324!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, valued at $160.2 million, is for rockets, rocket ammunition, and components. 2. Awarded to General Dynamics Armament and Technical Products, Inc., it highlights a significant defense procurement. 3. The 'NOT COMPETED' status raises concerns about potential price discovery and taxpayer value. 4. The sector is Ammunition Manufacturing, a critical but often consolidated defense industry segment.
Value Assessment
Rating: questionable
The contract value of $160.2 million for ammunition manufacturing appears substantial. Benchmarking against similar large-scale ammunition procurements would be necessary to definitively assess its value, especially given the limited competition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a sole-source or limited competition award. This method can lead to higher prices as it bypasses the competitive pressure that typically drives down costs for the government.
Taxpayer Impact: The lack of full and open competition may result in taxpayers paying a premium for these essential munitions.
Public Impact
Ensures supply of critical rocket and ammunition components for military operations. Supports jobs within the defense manufacturing sector, specifically at General Dynamics. Potential for increased costs to taxpayers due to non-competitive award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of Competition
- Potential for Overpricing
- Sole-Source Award
Positive Signals
- Ensures critical supply chain for defense
- Supports established defense contractor
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a key component of the defense industrial base. Spending in this area is driven by military readiness requirements and geopolitical factors.
Small Business Impact
There is no indication that small businesses were involved as subcontractors in this specific award. Further investigation would be needed to determine if any small business participation was mandated or occurred.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification for not seeking competitive bids. Robust oversight is crucial to ensure fair pricing and maximize taxpayer value in defense procurements.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency in award justification
- Risk of vendor lock-in
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ar, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $160.2 million to GENERAL DYNAMICS-OTS, INC.. 200608!002568!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0004 ! !20060324!20120630!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!29650!013!05!HAMPTON !CALHOUN !ARKANSAS !+000165304414!N!N!000000000000!1340!ROCKETS, ROCKET AMMUNITION & ROCKET COMPS !A6 !AMMUNITION !000 !NOT DISCERNABLE !332993!A!A!5!A!S! ! ! !999
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 $160.2 million.
What is the period of performance?
Start: 2006-03-24. End: 2011-05-31.
What was the specific justification for awarding this contract on a non-competitive basis?
The provided data indicates the contract was 'NOT COMPETED'. A detailed justification would typically be documented by the contracting agency, outlining reasons such as urgency, lack of available sources, or specific technical requirements that only one contractor could meet. Without this documentation, it's difficult to assess the validity of the non-competitive award.
How does the unit cost of these rockets and ammunition compare to similar items procured competitively?
Direct comparison is challenging without specific unit cost data and detailed specifications for comparable items. However, non-competitive awards often carry a risk of higher unit costs compared to those resulting from full and open competition. A thorough cost analysis by the DoD would be needed to validate pricing.
What is the long-term strategic impact of relying on a single source for these critical munitions?
Sole-sourcing critical munitions can create a dependency on a single supplier, potentially limiting future negotiating power and increasing vulnerability if that supplier faces production issues or decides to exit the market. Diversifying sources or ensuring robust contingency plans are vital for long-term strategic resilience.
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
Start Date: 2006-03-24
Current End Date: 2011-05-31
Potential End Date: 2011-05-31 00:00:00
Last Modified: 2012-08-24
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