DoD Awards $200M to General Dynamics for 155mm M1128 Projectile Manufacturing
Contract Overview
Contract Amount: $201,845,800 ($201.8M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-27
End Date: 2027-08-31
Contract Duration: 1,434 days
Daily Burn Rate: $140.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UKRAINE- THE M1128 LAP IS FOR THE MANUFACTURE, TEST, PACKAGING, AND DELIVERY OF THE 155MM M1128 PROJECTILE.
Place of Performance
Location: NICEVILLE, OKALOOSA County, FLORIDA, 32578
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $201.8 million to GENERAL DYNAMICS-OTS, INC. for work described as: UKRAINE- THE M1128 LAP IS FOR THE MANUFACTURE, TEST, PACKAGING, AND DELIVERY OF THE 155MM M1128 PROJECTILE. Key points: 1. Significant award for essential ammunition production. 2. Sole-source contract raises questions about price discovery. 3. Long-term contract (2023-2027) indicates sustained demand. 4. Focus on manufacturing, testing, packaging, and delivery.
Value Assessment
Rating: fair
The contract value of $200M for M1128 projectile manufacturing appears substantial. Without specific per-unit cost data or benchmarks for similar 155mm projectiles, a precise value assessment is difficult. However, the 'NOT COMPETED' status suggests potential for overpricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may result in higher costs for taxpayers compared to a competitive bidding process.
Taxpayer Impact: The sole-source nature of this award could lead to increased costs for taxpayers due to the absence of competitive pressure on pricing.
Public Impact
Ensures continued supply of critical 155mm artillery ammunition for military operations. Supports a major defense contractor, General Dynamics. Potential for higher costs to taxpayers due to lack of competition. Long-term contract provides stability for production and delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price discovery.
- Lack of transparency in per-unit cost.
- Potential for cost overruns without competitive pressure.
Positive Signals
- Ensures supply of critical defense materiel.
- Supports domestic manufacturing capabilities.
- Long-term contract provides program stability.
Sector Analysis
This contract falls under the Ammunition (except Small Arms) Manufacturing sector. Spending in this sector is critical for national defense, with significant government investment typically seen in maintaining readiness and technological advancement.
Small Business Impact
The data indicates this contract was awarded to General Dynamics-OTS, Inc., a large defense contractor. There is no indication of small business participation in this specific award, suggesting limited opportunities for SMBs.
Oversight & Accountability
The Department of the Army awarded this contract. Oversight would typically involve contract performance monitoring, quality assurance, and financial audits to ensure delivery and cost adherence, especially given the sole-source nature.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on cost justification
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, fl, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $201.8 million to GENERAL DYNAMICS-OTS, INC.. UKRAINE- THE M1128 LAP IS FOR THE MANUFACTURE, TEST, PACKAGING, AND DELIVERY OF THE 155MM M1128 PROJECTILE.
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 $201.8 million.
What is the period of performance?
Start: 2023-09-27. End: 2027-08-31.
What is the historical cost performance for similar 155mm projectile contracts awarded competitively?
Historical data on competitively awarded 155mm projectile contracts would provide a crucial benchmark. Comparing the unit cost and overall value of this sole-source award against those would reveal potential cost savings missed due to the lack of competition. This analysis is vital for assessing the true value for taxpayer dollars.
What are the specific justifications for awarding this contract on a sole-source basis?
Understanding the specific justifications for a sole-source award is critical for assessing risk. Reasons could include unique technical capabilities, urgent need, or lack of viable alternatives. Without this information, it's difficult to determine if the lack of competition was unavoidable or a missed opportunity for better pricing and innovation.
How will the Department of Defense ensure cost-effectiveness and quality assurance for this sole-source contract?
Given the sole-source nature, robust oversight mechanisms are essential. This includes rigorous performance monitoring, independent cost reviews, and stringent quality control processes throughout manufacturing, testing, and delivery. Transparency in reporting and regular audits would help mitigate risks associated with non-competitive awards.
Industry Classification
NAICS: Manufacturing › Other Fabricated Metal Product Manufacturing › Ammunition (except Small Arms) Manufacturing
Product/Service Code: AMMUNITION AND EXPLOSIVES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 115 HART ST, NICEVILLE, FL, 32578
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: $912,994,197
Exercised Options: $201,845,800
Current Obligation: $201,845,800
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $167,983,562
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W15QKN23D0057
IDV Type: IDC
Timeline
Start Date: 2023-09-27
Current End Date: 2027-08-31
Potential End Date: 2030-07-31 00:00:00
Last Modified: 2025-06-20
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