DoD Awards $103.7M for Ammunition Manufacturing, Highlighting Full and Open Competition
Contract Overview
Contract Amount: $103,697,808 ($103.7M)
Contractor: General Dynamics Ordnance & Tactical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2005-02-07
End Date: 2012-08-31
Contract Duration: 2,762 days
Daily Burn Rate: $37.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200508!500481!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1167 !A!N! !N! !P00001!20050207!20090209!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILLIAMSON !ILLINOIS !+000006100000!N!N!000000000000!1315!AMMUNITION, 75 MM THROUGH 125 MM !A6 !AMMUNITION !000 !* !332993!A!A!3! ! !D! ! !20200930!B! ! !A! !A!U!J!1!004!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!B!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: COACHELLA, RIVERSIDE County, CALIFORNIA, 92236, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Defense obligated $103.7 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 200508!500481!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1167 !A!N! !N! !P00001!20050207!20090209!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILL… Key points: 1. Contract awarded to General Dynamics for ammunition manufacturing. 2. Significant value of $103.7 million indicates substantial procurement. 3. Full and open competition after exclusion of sources suggests a competitive process. 4. Sector focus on Ammunition Manufacturing (NAICS 332993) is critical for defense readiness.
Value Assessment
Rating: good
The contract value of $103.7 million for ammunition manufacturing appears reasonable given the duration and scope. Benchmarking against similar large-scale defense procurements would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract utilized 'Full and Open Competition After Exclusion of Sources,' indicating a competitive process was employed. This method aims to ensure fair pricing and access for qualified vendors.
Taxpayer Impact: The competitive nature of this award is expected to yield favorable pricing for taxpayers, ensuring efficient use of defense funds.
Public Impact
Ensures supply of critical ammunition for military operations. Supports defense industrial base and manufacturing capabilities. Potential for job creation within the defense sector. Contributes to national security readiness.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery.
- Long-term demand fluctuations for specific ammunition types.
Positive Signals
- Strong competition likely drove favorable pricing.
- Established contractor with proven capabilities.
- Clear contract terms and fixed-price structure.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending in this area is directly tied to military readiness and operational requirements.
Small Business Impact
While the primary awardee is a large corporation, the contract may create opportunities for small businesses through subcontracting. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of Defense's procurement process, including competitive bidding, aims to ensure accountability and value for taxpayer money. Oversight is crucial throughout the contract lifecycle.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration is extensive, increasing risk of cost escalation or obsolescence.
- Reliance on a single primary contractor for a critical defense commodity.
- Potential for supply chain vulnerabilities impacting timely delivery.
- Need for ongoing monitoring of contractor performance and market price fluctuations.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ca, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.7 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 200508!500481!2100!W15QKN!TACOM - PICATINNY !W15QKN05C1167 !A!N! !N! !P00001!20050207!20090209!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILLIAMSON !ILLINOIS !+000006100000!N!N!000000000000!1315!AMMUNITION, 75 MM THROUGH 125 MM !A6 !AMMUNITION !000 !* !332993!A!A!3! ! !D! ! !202
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, 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 $103.7 million.
What is the period of performance?
Start: 2005-02-07. End: 2012-08-31.
What is the historical performance of General Dynamics Ordnance & Tactical Systems, Inc. on similar defense contracts?
General Dynamics Ordnance & Tactical Systems, Inc. has a long history of supplying defense products. Reviewing their past performance on ammunition contracts, including on-time delivery rates, quality control metrics, and any past disputes or contract modifications, would provide insight into their reliability and capability for this specific award.
How does the unit cost of this ammunition compare to industry benchmarks for similar caliber rounds?
A detailed unit cost analysis, comparing the price per round for the 75mm through 125mm ammunition against publicly available industry benchmarks or historical government contract data for similar calibers, is essential. This comparison would reveal whether the awarded price represents good value or if there is potential for cost savings.
What are the potential risks associated with the long contract duration (2762 days)?
The extended duration presents risks such as potential obsolescence of technology, fluctuating raw material costs, and shifts in military requirements. Mitigation strategies might include robust contract clauses for price adjustments, technology refresh provisions, and regular reviews to ensure alignment with evolving defense needs.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 6658 ROUTE 148, MARION, IL, 62959
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-02-07
Current End Date: 2012-08-31
Potential End Date: 2012-08-31 00:00:00
Last Modified: 2015-06-18
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