DoD awards $59.8M contract for 155mm propelling charges, with General Dynamics-OTS as the sole awardee
Contract Overview
Contract Amount: $59,777,391 ($59.8M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-08-30
End Date: 2030-05-31
Contract Duration: 2,100 days
Daily Burn Rate: $28.5K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: UKRAINE: THE PURPOSE OF THIS DELIVERY ORDER (PAA FUNDS) IS FOR THE M232A2 MACS LAP FOR THE 155MM PROPELLING CHARGES.
Place of Performance
Location: HAMPTON, CALHOUN County, ARKANSAS, 71744
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $59.8 million to GENERAL DYNAMICS-OTS, INC. for work described as: UKRAINE: THE PURPOSE OF THIS DELIVERY ORDER (PAA FUNDS) IS FOR THE M232A2 MACS LAP FOR THE 155MM PROPELLING CHARGES. Key points: 1. Contract focuses on essential ammunition components for artillery systems. 2. The award is a delivery order under a larger contract vehicle. 3. Pricing structure is Firm Fixed Price, indicating cost certainty. 4. Competition was conducted after exclusion of sources, suggesting specific circumstances. 5. The contract duration extends over several years, implying sustained demand. 6. The North American Industry Classification System (NAICS) code points to ammunition manufacturing.
Value Assessment
Rating: fair
The contract value of $59.8 million for M232A2 MACS LAP for 155mm propelling charges appears to be a significant investment. Benchmarking this specific delivery order against similar contracts for propelling charges is challenging without more granular data on unit costs and specific configurations. However, the Firm Fixed Price (FFP) structure suggests an attempt to control costs. The absence of multiple bids in the competition phase, as indicated by the award type, may limit the ability to definitively assess optimal value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This designation implies that while the initial solicitation may have been open, specific circumstances led to the exclusion of certain potential offerors before the final award. The data indicates only one award was made, suggesting limited competition at the final award stage. The specific reasons for excluding other sources are not detailed but could relate to proprietary technology, specific manufacturing capabilities, or prior contract performance.
Taxpayer Impact: The limited competition at the award stage means taxpayers may not have benefited from the most aggressive pricing that a broader competitive field could have generated. The government's ability to negotiate the best possible price may have been constrained.
Public Impact
This contract directly supports the operational readiness of U.S. Army artillery units by providing critical components for 155mm howitzers. The delivery of M232A2 MACS LAP (Modular Artillery Charge System) ensures the effective and safe firing of artillery rounds. The contract's geographic impact is primarily on the supply chain and manufacturing facilities, with final deployment to military units. Workforce implications include employment in specialized manufacturing roles within the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition at the award stage could lead to higher prices than a fully open process.
- Reliance on a single awardee for critical ammunition components poses a supply chain risk.
- The 'exclusion of sources' clause requires careful scrutiny to ensure fairness and necessity.
Positive Signals
- The Firm Fixed Price contract provides cost certainty for the Department of Defense.
- General Dynamics-OTS, Inc. is an established defense contractor with relevant manufacturing experience.
- The contract duration of over 5 years suggests a stable and predictable supply of essential munitions.
Sector Analysis
The defense sector's ammunition manufacturing segment is critical for national security, requiring specialized facilities and adherence to stringent quality standards. This contract falls within the broader category of defense industrial base support, specifically focusing on propellants and charges for large-caliber artillery. The market for such components is typically characterized by a limited number of highly qualified manufacturers due to technical barriers and security requirements. Spending in this area is driven by military readiness needs and ongoing operational requirements.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, General Dynamics-OTS, Inc., may engage small businesses as subcontractors for various components or services, though this is not mandated by the contract terms provided.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are embedded within the Firm Fixed Price structure, which holds the contractor responsible for delivering goods within the agreed-upon price. Transparency is facilitated through contract databases like FPDS, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- 155mm Artillery Ammunition
- Modular Artillery Charge System (MACS)
- Propelling Charges
- Defense Ammunition Production
- Army Artillery Systems
Risk Flags
- Limited competition at award stage
- Potential supply chain concentration risk
- Justification for source exclusion requires review
Tags
defense, ammunition, artillery, propelling-charges, firm-fixed-price, delivery-order, department-of-the-army, general-dynamics-ots, limited-competition, firm-fixed-price, arkansas, us-army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.8 million to GENERAL DYNAMICS-OTS, INC.. UKRAINE: THE PURPOSE OF THIS DELIVERY ORDER (PAA FUNDS) IS FOR THE M232A2 MACS LAP FOR THE 155MM PROPELLING CHARGES.
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 $59.8 million.
What is the period of performance?
Start: 2024-08-30. End: 2030-05-31.
What is the historical spending trend for 155mm propelling charges by the Department of Defense?
Analyzing historical spending on 155mm propelling charges requires a deep dive into procurement data over multiple fiscal years. Trends are influenced by global geopolitical events, operational tempo, and modernization programs. For instance, periods of heightened conflict or strategic shifts towards conventional deterrence often see increased demand and, consequently, higher spending. The Department of Defense typically procures these components through multi-year contracts to ensure supply chain stability and leverage economies of scale. However, specific figures for propelling charges, distinct from complete rounds, are often embedded within broader ammunition categories, making precise historical trend analysis challenging without specialized data extraction and aggregation.
How does the unit cost of the M232A2 MACS LAP compare to previous versions or similar charge systems?
Directly comparing the unit cost of the M232A2 MACS LAP to previous versions or similar charge systems is difficult without access to the specific unit pricing within this delivery order and historical pricing data for comparable systems. The M232A2 represents an evolution of the MACS system, potentially incorporating improved materials, manufacturing processes, or performance characteristics that could influence its cost. Factors such as inflation, raw material prices, and the scale of production also play a significant role. A comprehensive comparison would necessitate benchmarking against data from prior solicitations for MACS variants or alternative modular charge systems, considering the contract type (Firm Fixed Price) and the competitive environment at the time of each award.
What are the specific capabilities and advantages of the M232A2 MACS LAP that justify its procurement?
The M232A2 MACS LAP (Modular Artillery Charge System) is designed to provide a safer, more efficient, and environmentally friendlier alternative to traditional bagged artillery charges. Key advantages typically include enhanced safety features to reduce the risk of premature ignition, improved ballistic performance for greater range and accuracy, and modularity that allows for precise charge increments to optimize projectile trajectory. The 'LAP' designation likely refers to specific enhancements or a particular variant within the MACS family. Its procurement is justified by the need to maintain and modernize the artillery fire support capabilities of the U.S. Army, ensuring interoperability and effectiveness in contemporary and future operational environments.
What is General Dynamics-OTS, Inc.'s track record in manufacturing artillery components and fulfilling government contracts?
General Dynamics Ordnance and Tactical Systems (OTS), a subsidiary of General Dynamics, has a long-standing and significant track record in the defense industry, particularly in the manufacturing of munitions and ordnance. They are a major supplier of various artillery shells, mortar rounds, and associated components, including propelling charges. The company has historically been awarded numerous large-scale government contracts for these types of products. Their experience encompasses large-scale production, quality control, and adherence to stringent military specifications. While specific performance metrics for every contract are not publicly detailed, their continued success in securing substantial defense contracts suggests a generally positive performance history and capability in meeting the government's requirements for critical ordnance.
What are the potential risks associated with a 'Full and Open Competition After Exclusion of Sources' award structure?
The 'Full and Open Competition After Exclusion of Sources' (FOUCAES) award structure, while intended to ensure fairness, carries specific risks. Primarily, it can limit the pool of potential bidders if the exclusion criteria are narrowly defined or if only a few entities meet the specific, potentially unique, requirements. This reduced competition can lead to less favorable pricing for the government compared to a truly open competition. Furthermore, the justification for excluding sources must be robust to avoid perceptions or realities of favorit-ism or anti-competitive practices. If the exclusion is based on proprietary technology or specialized capabilities, it can create a de facto sole-source situation, increasing reliance on a single contractor and potentially hindering future innovation or market entry by other firms.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $59,777,391
Exercised Options: $59,777,391
Current Obligation: $59,777,391
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15QKN19D0110
IDV Type: IDC
Timeline
Start Date: 2024-08-30
Current End Date: 2030-05-31
Potential End Date: 2030-05-31 12:05:00
Last Modified: 2025-03-05
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