Air Force awards $23.3M contract for small glide munitions to Dynetics, Inc
Contract Overview
Contract Amount: $23,278,520 ($23.3M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-08-24
End Date: 2019-12-13
Contract Duration: 841 days
Daily Burn Rate: $27.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: SMALL GLIDE MUNITION UNDEFINITIZED CONTRACT ACTION
Place of Performance
Location: MC EWEN, HICKMAN County, TENNESSEE, 37101
Plain-Language Summary
Department of Defense obligated $23.3 million to DYNETICS, INC. for work described as: SMALL GLIDE MUNITION UNDEFINITIZED CONTRACT ACTION Key points: 1. Contract awarded to Dynetics, Inc. for small glide munitions. 2. The contract is valued at $23.3 million. 3. This is an undefinitized contract action, indicating initial agreement before final terms. 4. The sector is Ammunition (except Small Arms) Manufacturing. 5. The contract was not competed.
Value Assessment
Rating: questionable
The contract is undefinitized, making a precise value assessment difficult. The fixed-price incentive structure aims to control costs, but the lack of competition raises concerns about achieving the best possible price.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers, as there was no market pressure to drive down prices.
Public Impact
Taxpayers may be paying more than necessary due to the sole-source nature of the award. The undefinitized contract action suggests potential for cost overruns or scope creep if not managed carefully. The specific capabilities of the small glide munitions and their necessity are not detailed, impacting public understanding of the expenditure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Undefinitized contract action
- Fixed-price incentive structure with potential for cost growth
Positive Signals
- Award to a specific company for specialized munitions
Sector Analysis
The defense sector, particularly ammunition manufacturing, often involves specialized technologies and long lead times. Benchmarks for similar undefinitized contract actions in this sub-sector are difficult to establish without competitive data.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The undefinitized nature of the contract action requires close oversight to ensure final terms are negotiated fairly and that the government receives good value. The lack of competition necessitates robust monitoring of performance and costs.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Undefinitized Contract Action (UCA)
- Potential for cost overruns
- Limited transparency on justification for sole-source award
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, tn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.3 million to DYNETICS, INC.. SMALL GLIDE MUNITION UNDEFINITIZED CONTRACT ACTION
Who is the contractor on this award?
The obligated recipient is DYNETICS, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $23.3 million.
What is the period of performance?
Start: 2017-08-24. End: 2019-12-13.
What was the justification for not competing this contract, and what steps were taken to ensure fair pricing?
The justification for not competing this contract is not provided in the data. Typically, sole-source awards are made when only one responsible source can provide the required supplies or services. To ensure fair pricing, the government would usually conduct a price analysis based on historical data, cost breakdowns, or comparisons to similar items, especially with a fixed-price incentive contract.
What are the specific risks associated with an undefinitized contract action for munitions, and how are they mitigated?
Risks include potential cost growth, scope creep, and delays in finalizing terms. Mitigation involves strict oversight, clear performance metrics, and a defined timeline for definitization. For munitions, risks also extend to ensuring the final product meets stringent safety and performance standards before full commitment.
How does the fixed-price incentive structure balance cost control with the need for effective munitions development?
The fixed-price incentive structure aims to motivate the contractor to control costs by sharing savings with the government if the final cost is below the target. However, it also includes a ceiling price to limit government liability. This balance encourages efficiency while ensuring the government doesn't overpay, provided the target and ceiling are set appropriately.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Address: 1002 EXPLORER BLVD, HUNTSVILLE, AL, 35806
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,278,520
Exercised Options: $23,278,520
Current Obligation: $23,278,520
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: FA865617D0073
IDV Type: IDC
Timeline
Start Date: 2017-08-24
Current End Date: 2019-12-13
Potential End Date: 2024-07-12 00:00:00
Last Modified: 2025-01-28
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