Air Force awards $24.8M for Small Glide Munitions to Dynetics, Inc. under a sole-source contract
Contract Overview
Contract Amount: $24,834,983 ($24.8M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-12-07
End Date: 2020-05-31
Contract Duration: 541 days
Daily Burn Rate: $45.9K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: SMALL GLIDE MUNITIONS
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to DYNETICS, INC. for work described as: SMALL GLIDE MUNITIONS Key points: 1. Significant award for specialized munitions, indicating a critical need. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on defense sector, specifically air-delivered munitions.
Value Assessment
Rating: questionable
The contract was awarded on a firm fixed-price basis. Without competitive bids, it's difficult to assess if the $24.8 million price represents fair value compared to similar munitions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, meaning only one source, Dynetics, Inc., was considered. This limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition could result in the government paying more than necessary for these munitions, impacting overall defense spending efficiency.
Public Impact
Taxpayers may be overpaying for essential defense equipment due to a lack of competition. The specific capabilities of these glide munitions are critical for Air Force operations. Future procurement strategies should explore competitive avenues to ensure best value.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpayment
Positive Signals
- Firm fixed-price contract
- Awarded to a specific company for specialized equipment
Sector Analysis
This award falls within the defense sector, specifically for ammunition manufacturing. Defense spending on munitions can fluctuate based on geopolitical events and modernization efforts. Benchmarks for similar sole-source munitions contracts are often difficult to establish due to unique specifications.
Small Business Impact
This contract was awarded to Dynetics, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny from oversight bodies to ensure the price paid is justified and that future procurements consider competitive options.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award limits competition.
- Potential for non-competitive pricing.
- Lack of transparency in price justification.
- No small business participation noted.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to DYNETICS, INC.. SMALL GLIDE MUNITIONS
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 $24.8 million.
What is the period of performance?
Start: 2018-12-07. End: 2020-05-31.
What is the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of viable alternative sources. Without further documentation, it's presumed the Air Force determined Dynetics, Inc. was the only capable provider for these specific small glide munitions at the time of award.
What are the risks associated with a sole-source procurement of defense munitions?
The primary risks include inflated pricing due to the absence of competitive pressure, potential for reduced innovation, and a lack of transparency in the cost-benefit analysis. This can lead to inefficient use of taxpayer funds and may limit the government's ability to secure the best possible technology or terms.
How effective is this procurement in meeting the Air Force's needs for small glide munitions?
While the award indicates a need is being met, the effectiveness in terms of value for money is questionable due to the sole-source nature. The Air Force has secured the munitions, but the cost-effectiveness and long-term strategic advantage could be improved through competitive processes.
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
Pricing Type: FIRM FIXED PRICE (J)
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: $24,834,983
Exercised Options: $24,834,983
Current Obligation: $24,834,983
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: 2018-12-07
Current End Date: 2020-05-31
Potential End Date: 2024-06-27 00:00:00
Last Modified: 2025-01-28
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