Army awards $81.4M contract for large caliber gun systems to General Dynamics-OTS, Inc

Contract Overview

Contract Amount: $81,447,936 ($81.4M)

Contractor: General Dynamics-Ots, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-09-26

End Date: 2010-02-15

Contract Duration: 1,603 days

Daily Burn Rate: $50.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200512!502018!2100!W15QKN!TACOM - PICATINNY !W15QKN05C0621 !A!N! !N! ! !20050926!20070228!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!64675!031!23!SACO !YORK !MAINE !+000014737972!N!N!000014737972!1010!GUNS, OVER 30 MM UP TO 75 MM !A5 !WEAPONS !000 !* !332994!E! !1! ! ! ! ! !20200930!B! ! !A! !D!N!J!1!001!N!1A!A!Y!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y! ! !0001! !

Place of Performance

Location: BURLINGTON, CHITTENDEN County, VERMONT, 05401

State: Vermont Government Spending

Plain-Language Summary

Department of Defense obligated $81.4 million to GENERAL DYNAMICS-OTS, INC. for work described as: 200512!502018!2100!W15QKN!TACOM - PICATINNY !W15QKN05C0621 !A!N! !N! ! !20050926!20070228!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!64675!031!23!SACO !YORK… Key points: 1. Contract awarded to a single vendor, raising questions about competition and potential cost savings. 2. The contract's duration of over 4 years suggests a long-term need for these weapon systems. 3. The firm-fixed-price structure aims to transfer some cost risk to the contractor. 4. Awarded by the Department of the Army, indicating a focus on tactical ground vehicle armament. 5. The specific product code points to a niche but critical component within the defense sector. 6. The contract was not competed, suggesting potential sole-source justification or a specific requirement.

Value Assessment

Rating: fair

The contract value of $81.4 million for large caliber gun systems appears substantial. Without comparable contract data or detailed cost breakdowns, it is difficult to definitively assess value for money. The firm-fixed-price contract type suggests an attempt to control costs, but the lack of competition means there was no direct price comparison during the award process. Benchmarking against similar systems or historical pricing for this specific type of ordnance would be necessary for a more thorough evaluation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not openly competed. The justification for this approach is not provided in the data. Typically, sole-source awards occur when only one vendor can meet the specific requirements, or for urgent needs. The lack of competition limits the government's ability to leverage market forces to achieve the best possible price and terms.

Taxpayer Impact: The absence of competition means taxpayers may not have benefited from potential cost reductions that could have arisen from a competitive bidding process. This could lead to a higher overall expenditure for the required weapon systems.

Public Impact

The primary beneficiaries are the U.S. Army units that will utilize these large caliber gun systems for tactical operations. The contract delivers critical weapon components essential for ground combat effectiveness. The geographic impact is primarily within the U.S. Army's operational theaters, though manufacturing may be localized. The contract supports jobs within the defense manufacturing sector, specifically related to ordnance production.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher prices than a competed contract.
Sole-source justification needs to be thoroughly reviewed for validity.
Potential for contractor lock-in due to specialized nature of the product.

Positive Signals

Firm-fixed-price contract helps manage cost uncertainty for the government.
Award to a known defense contractor suggests established capabilities.
Contract duration indicates a sustained commitment to equipping Army forces.

Sector Analysis

This contract falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of large caliber weapon systems. The market for such specialized ordnance is typically dominated by a few large defense contractors. The value of this contract, $81.4 million, is significant within this niche, reflecting the high cost and specialized nature of military hardware. Comparable spending benchmarks would likely be found within other major defense procurement programs for weapon platforms and their associated armaments.

Small Business Impact

The data indicates this contract was not competed and does not specify any small business set-aside provisions or subcontracting goals. Given the specialized nature of large caliber gun systems, it is likely that the prime contractor, General Dynamics-OTS, Inc., possesses the unique capabilities required. There is no direct indication of subcontracting opportunities for small businesses within this specific award, though the prime contractor may engage them for other components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified goods. Transparency may be limited due to the sole-source nature of the award. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Combat Vehicle Procurement
Ordnance and Ammunition Manufacturing
Tactical Wheeled Vehicle Programs
Ground Combat Systems Modernization

Risk Flags

Sole-source award lacks competitive justification.
Potential for unbenchmarked pricing.
Limited transparency on specific technical requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.4 million to GENERAL DYNAMICS-OTS, INC.. 200512!502018!2100!W15QKN!TACOM - PICATINNY !W15QKN05C0621 !A!N! !N! ! !20050926!20070228!003567125!003567125!001381284!N!GENERAL DYNAMICS ARMAMENT AND !128 LAKESIDE AVE !BURLINGTON !VT!05401!64675!031!23!SACO !YORK !MAINE !+000014737972!N!N!000014737972!1010!GUNS, OVER 30 MM UP TO 75 MM !A5 !WEAPONS !000 !* !332994!E! !1! ! ! ! ! !202

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 $81.4 million.

What is the period of performance?

Start: 2005-09-26. End: 2010-02-15.

What is the specific type of large caliber gun system being procured under this contract?

The contract specifies the National Stock Number (NSN) '332994' and the Product Service Code (PSC) '1010', which corresponds to 'GUNS, OVER 30 MM UP TO 75 MM'. This indicates the procurement is for cannons or similar large caliber weapon systems falling within this size range, likely intended for integration onto ground combat vehicles or as standalone artillery pieces. The exact model or specific technical configuration would require further detailed contract documentation beyond the provided summary data.

What is the historical spending pattern for this specific type of gun system by the Department of the Army?

The provided data only details a single contract award of $81.4 million to General Dynamics-OTS, Inc. for guns over 30mm up to 75mm, awarded in 2005 with an end date in 2010. To understand historical spending patterns, one would need to analyze procurement data for similar NSNs and PSCs over a longer period, looking at multiple awards to various contractors. This would reveal trends in volume, pricing, and the prevalence of competitive versus sole-source procurements for this category of weapon systems by the Army.

What is the track record of General Dynamics-OTS, Inc. in delivering similar weapon systems to the U.S. military?

General Dynamics Ordnance and Tactical Systems (OTS), the contractor, is a well-established entity within the defense industry, known for producing a wide range of weapon systems, including large caliber cannons, ammunition, and related ordnance. They have a significant history of supplying the U.S. military and allied nations. While this specific contract data doesn't detail past performance on this exact system, the company's overall profile suggests substantial experience and capability in manufacturing such armaments. A deeper dive into contract databases would reveal specific past performance ratings and delivery history on similar programs.

Are there any known risks associated with the sole-source award of this contract?

The primary risk associated with a sole-source award is the potential for inflated pricing due to the lack of competitive pressure. Without competing bids, the government may not achieve the most economical price. Additionally, sole-source contracts can sometimes indicate a lack of market readiness or a highly specialized requirement that only one supplier can meet, which could pose a risk if that supplier faces production issues or goes out of business. Transparency is also reduced, making it harder to publicly justify the expenditure.

How does the value of this contract compare to other similar procurements for large caliber gun systems?

Direct comparison is challenging without access to a broader dataset of similar contracts. However, $81.4 million for a multi-year procurement of specialized weapon systems is a significant sum, typical for major defense equipment. To benchmark effectively, one would need to identify contracts for comparable gun systems (e.g., similar caliber, intended platform, quantity) awarded around the same period or more recently, and analyze their total values, durations, and pricing structures. The lack of competition here makes direct value-for-money comparisons more difficult.

What are the potential implications for program effectiveness given the contract's structure and award method?

The firm-fixed-price structure generally promotes cost control and predictability for the government, which can contribute to program effectiveness by ensuring budget adherence. However, the sole-source award method raises concerns about whether the most effective or technologically advanced solution was secured at the best possible price. If the sole-source justification was based on unique capabilities, it might ensure the right system is delivered. Conversely, if competition was forgone for convenience, it could lead to suboptimal outcomes in terms of cost or innovation, potentially impacting long-term program effectiveness and readiness.

Industry Classification

NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Small Arms, Ordnance, and Ordnance Accessories Manufacturing

Product/Service Code: WEAPONS

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: 128 LAKESIDE AVE, BURLINGTON, VT, 00

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline