Army awards $145.5M for Ammunition Manufacturing to General Dynamics-OTS, Inc
Contract Overview
Contract Amount: $145,475,729 ($145.5M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-02-28
End Date: 2011-06-30
Contract Duration: 1,583 days
Daily Burn Rate: $91.9K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER - ARMY REQUIREMENTS
Place of Performance
Location: BURLINGTON, CHITTENDEN County, VERMONT, 05401
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $145.5 million to GENERAL DYNAMICS-OTS, INC. for work described as: DELIVERY ORDER - ARMY REQUIREMENTS Key points: 1. Significant contract value of $145.5 million. 2. Sole-source award to General Dynamics-OTS, Inc. 3. Focus on Ammunition (except Small Arms) Manufacturing. 4. Long duration of 1583 days (approx. 4.3 years).
Value Assessment
Rating: fair
The contract value is substantial, but without specific unit cost data or comparison points for ammunition manufacturing, a precise value assessment is difficult. The fixed-price nature provides some cost certainty.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a sole-source award, meaning competition was not sought. This limits price discovery and potentially leads to higher costs than if multiple vendors had competed.
Taxpayer Impact: Taxpayer funds are committed without the benefit of competitive bidding, potentially resulting in a less optimal price for the goods procured.
Public Impact
Ensures supply of critical ammunition for the Army. Supports a specific defense contractor and its workforce. Potential for higher costs due to lack of competition.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Long contract duration may not reflect current market prices.
- Lack of detailed cost breakdown makes value assessment difficult.
Positive Signals
- Ensures a consistent supply of essential ammunition.
- Fixed-price contract provides cost predictability.
Sector Analysis
The defense sector, particularly ammunition manufacturing, often involves specialized capabilities and long production cycles. Spending benchmarks are highly dependent on the specific type and quantity of ammunition.
Small Business Impact
This contract does not appear to involve small business participation, as the awardee is a large corporation and the contract type is not specified for subcontracting.
Oversight & Accountability
Oversight would focus on contract performance, delivery schedules, and quality control to ensure the Army receives the specified ammunition. The sole-source nature warrants scrutiny of pricing justifications.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Long contract duration
- Lack of competition
- Potential for price inflation over time
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, vt, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $145.5 million to GENERAL DYNAMICS-OTS, INC.. DELIVERY ORDER - ARMY REQUIREMENTS
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 $145.5 million.
What is the period of performance?
Start: 2007-02-28. End: 2011-06-30.
What was the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of viable alternatives. Price reasonableness is usually determined through cost analysis, comparison to historical prices, or market research. Without access to the specific justification document, it's difficult to ascertain the exact reasoning or the methods used to ensure a fair price.
What are the risks associated with a sole-source award for ammunition manufacturing over a 4.3-year period?
The primary risk is paying a premium due to the absence of competition. Market prices for raw materials or manufacturing processes could fluctuate, potentially making the fixed price disadvantageous over time. Additionally, the lack of competitive pressure might reduce incentives for the contractor to innovate or optimize costs.
How does this contract contribute to the overall effectiveness of Army operations, and what are the potential impacts of supply chain disruptions?
This contract directly supports the Army's operational readiness by ensuring a supply of essential ammunition. Disruptions could severely impact training and combat capabilities. The sole-source nature, however, concentrates this critical supply with one vendor, increasing vulnerability if that vendor faces production issues or other challenges.
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
Financial Breakdown
Contract Ceiling: $145,475,729
Exercised Options: $145,475,729
Current Obligation: $145,475,729
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q05D0001
IDV Type: IDC
Timeline
Start Date: 2007-02-28
Current End Date: 2011-06-30
Potential End Date: 2011-06-30 00:00:00
Last Modified: 2012-08-24
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