DoD's $97.5M Small Glide Munition IDIQ with Dynetics, Inc. awarded without competition
Contract Overview
Contract Amount: $97,458,455 ($97.5M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-11-04
End Date: 2022-12-23
Contract Duration: 1,145 days
Daily Burn Rate: $85.1K/day
Competition Type: NOT COMPETED
Pricing Type: FIXED PRICE INCENTIVE
Sector: Defense
Official Description: SMALL GLIDE MUNITION IDIQ
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $97.5 million to DYNETICS, INC. for work described as: SMALL GLIDE MUNITION IDIQ Key points: 1. Significant contract value awarded to a single vendor. 2. Lack of competition raises concerns about price discovery. 3. Ammunition manufacturing sector, with potential for future needs. 4. Contract awarded by the Department of the Air Force.
Value Assessment
Rating: questionable
The contract's total value is $97.5 million. Without competitive bidding, it's difficult to assess if this represents fair market value. Benchmarking against similar contracts for glide munitions is needed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.
Taxpayer Impact: The lack of competition may result in higher costs for taxpayers compared to a fully competed contract.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The Department of the Air Force secured a critical capability without exploring alternative vendors. Future contracts for similar munitions could be influenced by this sole-source award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- High contract value
Positive Signals
- Secured critical capability
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector. The total awarded value of $97.5 million is substantial for this specific type of defense procurement.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as the 'sb' field is false. Further analysis would be needed to determine if small businesses could have provided similar capabilities.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny. Oversight should focus on the justification for not competing the contract and ensuring the price paid was reasonable.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Limited visibility into the justification for sole-source award.
- Risk of setting a precedent for future non-competitive awards.
- Absence of small business participation.
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 $97.5 million to DYNETICS, INC.. SMALL GLIDE MUNITION IDIQ
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 $97.5 million.
What is the period of performance?
Start: 2019-11-04. End: 2022-12-23.
What was the justification for awarding this contract on a sole-source basis?
The justification for a sole-source award typically involves specific circumstances, such as a unique capability possessed by only one vendor, urgent and compelling needs that preclude competition, or national security requirements. A thorough review of the contract file and associated documentation would be necessary to ascertain the precise reasons cited by the Department of the Air Force for this decision.
How does the awarded price compare to industry benchmarks for similar glide munitions?
Without access to detailed pricing data and specific technical specifications, a direct comparison is challenging. However, given the sole-source nature, it is prudent to benchmark against publicly available data for similar munitions procured competitively by other agencies or allies. Any significant deviation upwards could indicate a lack of price competition.
What is the long-term strategic impact of awarding such a significant contract without competition?
Awarding a large contract without competition can disincentivize market entry for potential competitors and may lead to a reduced innovation landscape over time. It also sets a precedent that could be followed for future procurements, potentially limiting the government's access to the best value and most advanced solutions available in the market.
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: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Leidos Holdings, Inc.
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: $97,458,455
Exercised Options: $97,458,455
Current Obligation: $97,458,455
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $39,218,894
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: 2019-11-04
Current End Date: 2022-12-23
Potential End Date: 2022-12-23 00:00:00
Last Modified: 2025-01-28
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