DoD Awards $11.45M Contract for Rockets to General Dynamics, Limited Competition
Contract Overview
Contract Amount: $11,450,321 ($11.5M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2006-07-05
End Date: 2009-01-31
Contract Duration: 941 days
Daily Burn Rate: $12.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200608!004399!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0005 ! !20060705!20120630!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!29650!013!05!HAMPTON !CALHOUN !ARKANSAS !+000001784745!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 $11.5 million to GENERAL DYNAMICS-OTS, INC. for work described as: 200608!004399!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0005 ! !20060705!20120630!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!29650!013!05!HAMPTON !CALH… Key points: 1. Contract awarded to General Dynamics for rockets and related components. 2. Significant portion of the contract value is for rockets, rocket ammunition, and components. 3. The contract was not competed, raising potential concerns about price discovery. 4. Spending is within the Ammunition (except Small Arms) Manufacturing sector.
Value Assessment
Rating: fair
The contract value of $11.45 million for ammunition manufacturing appears within a reasonable range for specialized defense components, but without specific unit cost data, a precise benchmark is difficult. The fixed-price nature suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was not competed, indicating a limited source selection. This approach may lead to higher prices than a fully competed contract, as competitive pressure is reduced. The specific reasons for limited competition are not detailed.
Taxpayer Impact: The lack of full and open competition could result in taxpayers paying more than necessary for these defense articles.
Public Impact
Ensures supply of critical rocket components for military operations. Supports a specific defense contractor, potentially impacting local employment. Highlights the reliance on specific manufacturers for specialized defense equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpricing due to limited competition
- Long contract duration (941 days)
Positive Signals
- Firm fixed price contract type
- Addresses a specific defense need
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical area for defense readiness. Spending benchmarks in this niche sector can vary widely based on the specific type and quantity of munitions.
Small Business Impact
The data does not indicate any specific set-asides or participation goals for small businesses in this contract. The prime contractor is a large entity, suggesting limited direct opportunities for small businesses unless through subcontracting.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the Department of Defense. Oversight would typically involve program management and contract administration to ensure delivery and quality standards are met.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for price inflation
- Lack of transparency in source selection
- Reliance on a single supplier for critical components
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ar, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.5 million to GENERAL DYNAMICS-OTS, INC.. 200608!004399!2100!W31P4Q!USA AVIATION AND MISSILE COMMAND!W31P4Q05D0001 !A!N! !N!0005 ! !20060705!20120630!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!29650!013!05!HAMPTON !CALHOUN !ARKANSAS !+000001784745!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 $11.5 million.
What is the period of performance?
Start: 2006-07-05. End: 2009-01-31.
What was the specific justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, reasons for limited competition include urgency, unique capabilities, or sole source availability. Without this justification, it's impossible to assess the price determination process. A fair and reasonable price would normally be established through market research, historical pricing, or competitive proposals, none of which appear to have been fully utilized here.
What are the potential risks associated with relying on a single source for rocket components, especially given the contract's duration?
Relying on a single source for critical rocket components carries risks of supply chain disruption if the contractor faces production issues, financial instability, or geopolitical challenges. The extended duration of 941 days amplifies these risks. Furthermore, the lack of competition may disincentivize innovation and efficiency improvements from the sole provider, potentially leading to suboptimal performance or higher long-term costs for the government.
How does the $11.45 million award compare to typical spending for similar ammunition manufacturing contracts, and what is the expected effectiveness?
Comparing this $11.45 million award requires specific data on the type and quantity of rockets and components. However, for specialized defense manufacturing, this value is not inherently excessive. The effectiveness hinges on General Dynamics' ability to deliver high-quality products on time, meeting all military specifications. The firm fixed-price contract aims to ensure cost-effectiveness, but the ultimate measure of effectiveness will be the performance of these munitions in their intended operational context.
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: 2006-07-05
Current End Date: 2009-01-31
Potential End Date: 2009-01-31 00:00:00
Last Modified: 2012-08-24
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