DoD's $309M Ammunition Contract Awarded to General Dynamics-OTS, Inc. in 2008
Contract Overview
Contract Amount: $309,282,156 ($309.3M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-09-16
End Date: 2014-06-30
Contract Duration: 2,113 days
Daily Burn Rate: $146.4K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SUPPLEMTNAL FY 2008 REQUIREMENTS.
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $309.3 million to GENERAL DYNAMICS-OTS, INC. for work described as: SUPPLEMTNAL FY 2008 REQUIREMENTS. Key points: 1. The contract value of $309.28 million for ammunition manufacturing is substantial. 2. General Dynamics-OTS, Inc. is a major defense contractor, indicating significant industry presence. 3. The 'NOT COMPETED' award raises concerns about potential lack of price discovery and value. 4. The sector is Defense, specifically ammunition manufacturing, a critical but potentially high-cost area.
Value Assessment
Rating: questionable
The contract's pricing is difficult to assess without competitive benchmarks. Given the lack of competition, it's questionable whether the government secured the best possible price for this ammunition.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition suggests taxpayers may have overpaid for these ammunition requirements.
Public Impact
Taxpayers funded a significant contract for military ammunition. The award impacts the defense industrial base, specifically ammunition production. The long duration (2008-2014) suggests sustained demand for these supplies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Long contract duration
Positive Signals
- Award to established contractor
- Addresses critical defense need
Sector Analysis
The defense sector, particularly ammunition manufacturing, is characterized by high barriers to entry and specialized production. Spending benchmarks for such specific items are often proprietary or vary widely based on material costs and technological requirements.
Small Business Impact
The data indicates this contract was awarded to General Dynamics-OTS, Inc., a large corporation. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this specific award.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for sole-source procurement was valid and that pricing was reasonable. Accountability for the lack of competition is crucial.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Limited transparency in award justification
- Long contract duration without clear competitive re-evaluation
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 $309.3 million to GENERAL DYNAMICS-OTS, INC.. SUPPLEMTNAL FY 2008 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 $309.3 million.
What is the period of performance?
Start: 2008-09-16. End: 2014-06-30.
What was the specific justification for awarding this contract on a sole-source basis, and how was price reasonableness determined?
The justification for a sole-source award typically involves factors like unique capabilities, urgent need, or lack of alternative sources. Price reasonableness is usually assessed through comparison with historical prices, other similar contracts, or cost analysis. Without the specific justification documentation, it's impossible to definitively state the reasons or the exact methods used to ensure a fair price.
What was the actual cost per unit for the ammunition, and how does it compare to industry benchmarks for similar products during the contract period?
The provided data does not include the per-unit cost of the ammunition. To assess this, one would need access to the contract's detailed line items and unit pricing. Comparing this to industry benchmarks would require market research into ammunition costs from 2008-2014, considering factors like caliber, type, and quantity.
Given the 2008 award date and 2014 completion, what was the overall effectiveness of the ammunition supplied under this contract in meeting DoD's operational requirements?
The effectiveness of the ammunition supplied is not directly measurable from the contract data alone. Effectiveness would be determined by operational reports, performance metrics, and feedback from end-users within the Department of Defense. This contract data primarily reflects the procurement process and financial aspects, not the end-use performance.
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: $309,282,156
Exercised Options: $309,282,156
Current Obligation: $309,282,156
Contract Characteristics
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q05D0001
IDV Type: IDC
Timeline
Start Date: 2008-09-16
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2014-08-20
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