DoD awards $160.9M for Modular Artillery Charge System projectiles to General Dynamics-OTS
Contract Overview
Contract Amount: $160,915,752 ($160.9M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-04
End Date: 2030-07-31
Contract Duration: 1,791 days
Daily Burn Rate: $89.8K/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: PAA CAR: THE PURPOSE OF DO W15QKN25F0384 IS TO FUND THE MANUFACTURE, PRODUCTION, AND DELIVERY OF THE MODULAR ARTILLERY CHARGE SYSTEM (MACS) LOAD, ASSEMBLE, AND PACK (LAP) M231 AND M232A2 PROJECTILES.
Place of Performance
Location: HAMPTON, CALHOUN County, ARKANSAS, 71744
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $160.9 million to GENERAL DYNAMICS-OTS, INC. for work described as: PAA CAR: THE PURPOSE OF DO W15QKN25F0384 IS TO FUND THE MANUFACTURE, PRODUCTION, AND DELIVERY OF THE MODULAR ARTILLERY CHARGE SYSTEM (MACS) LOAD, ASSEMBLE, AND PACK (LAP) M231 AND M232A2 PROJECTILES. Key points: 1. Contract aims to fund production and delivery of critical M231 and M232A2 projectiles. 2. General Dynamics-OTS, Inc. secured this significant award, indicating strong performance or market position. 3. The contract duration of nearly five years suggests a sustained need for these munitions. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The award falls under Ammunition (except Small Arms) Manufacturing, a key defense industrial base sector. 6. This procurement supports the Army's readiness and operational capabilities.
Value Assessment
Rating: good
The contract value of $160.9 million over approximately five years for the manufacture and delivery of artillery charge system projectiles appears reasonable given the specialized nature of defense manufacturing. Benchmarking against similar, large-scale ammunition production contracts would provide a more precise value-for-money assessment. However, the firm fixed-price structure suggests the government has negotiated a set price, limiting potential cost escalations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while a competitive process was intended, specific circumstances led to the exclusion of certain potential bidders. The exact reasons for exclusion are not detailed, but it suggests a limited pool of qualified contractors. The limited competition may have implications for price negotiation, potentially leading to higher costs than a fully open competition with multiple bidders.
Taxpayer Impact: The limited competition means taxpayers may not have benefited from the lowest possible price achievable through a broader bidding process. This could result in a less optimal allocation of taxpayer funds compared to a scenario with more robust market engagement.
Public Impact
The primary beneficiaries are the U.S. Army, ensuring they have a reliable supply of critical artillery components. The services delivered include the manufacture, production, and delivery of M231 and M232A2 projectiles. The geographic impact is primarily on the contractor's facilities in Arkansas, supporting local employment and economic activity. Workforce implications include skilled manufacturing jobs related to ordnance production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may reduce price discovery and potentially increase costs for taxpayers.
- Reliance on a single primary contractor for a critical component could pose supply chain risks if not managed proactively.
Positive Signals
- Firm fixed-price contract type provides cost certainty for the government.
- Long-term contract duration (nearly 5 years) ensures supply chain stability for essential munitions.
- Award to an established defense contractor like General Dynamics-OTS suggests a level of proven capability.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. The market for such specialized munitions is typically characterized by high barriers to entry due to stringent quality control, security requirements, and advanced manufacturing processes. Spending in this sector is directly tied to military readiness and geopolitical demands. Comparable spending benchmarks would involve other large-scale contracts for artillery shells, propellants, and related ordnance.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). General Dynamics-OTS, Inc. is a large defense contractor. While there is no direct small business set-aside, the prime contractor may engage small businesses as subcontractors for various components or services, contributing to the broader small business ecosystem within the defense supply chain. Further analysis would be needed to determine the extent of small business subcontracting.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified goods. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Army Ammunition Production
- Artillery Systems Procurement
- Defense Industrial Base Manufacturing
- Ordnance Production Contracts
- Modular Artillery Charge System (MACS)
Risk Flags
- Limited Competition
- Supply Chain Dependency
- Long-Term Production Schedule
Tags
defense, department-of-defense, department-of-the-army, ammunition-manufacturing, artillery-projectiles, general-dynamics-ots, firm-fixed-price, limited-competition, long-term-contract, arkansas, w15qkn25f0384
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $160.9 million to GENERAL DYNAMICS-OTS, INC.. PAA CAR: THE PURPOSE OF DO W15QKN25F0384 IS TO FUND THE MANUFACTURE, PRODUCTION, AND DELIVERY OF THE MODULAR ARTILLERY CHARGE SYSTEM (MACS) LOAD, ASSEMBLE, AND PACK (LAP) M231 AND M232A2 PROJECTILES.
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 $160.9 million.
What is the period of performance?
Start: 2025-09-04. End: 2030-07-31.
What is the track record of General Dynamics-OTS, Inc. in fulfilling similar defense manufacturing contracts?
General Dynamics-OTS, Inc. (GD-OTS) is a significant player in the defense manufacturing sector, known for producing a range of ordnance, including artillery shells, mortar rounds, and related components. They have a history of supplying the U.S. military and allied nations. Their track record typically involves large-scale production runs and adherence to strict military specifications. While specific performance metrics for past contracts are not detailed here, GD-OTS's continued success in securing major awards suggests a generally positive performance history. However, like any large defense contractor, they may have faced challenges or scrutiny on specific programs, which would require a deeper dive into contract performance reports and historical data.
How does the per-unit cost of these projectiles compare to similar items procured by the DoD?
Determining the precise per-unit cost for the M231 and M232A2 projectiles under this contract is not feasible with the provided data, as the total contract value is for the entire scope of manufacturing, production, and delivery over several years. To benchmark per-unit costs, one would need to divide the total contract value by the estimated number of units to be produced. This information is not available. Furthermore, direct comparison to similar items is complex due to variations in specifications, materials, production volumes, and contract terms (e.g., fixed-price vs. cost-plus). A thorough analysis would require access to detailed unit cost breakdowns and historical procurement data for comparable ammunition types across different DoD agencies and contract vehicles.
What are the primary risks associated with this contract and how are they being mitigated?
Key risks for this contract include potential supply chain disruptions for raw materials or components, manufacturing quality control issues, and schedule delays. Given the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type, there's also a risk related to limited competition potentially impacting long-term pricing and innovation. Mitigation strategies likely include robust quality assurance processes mandated by the contract, strong supplier relationship management by General Dynamics-OTS, Inc., and active government oversight. The firm fixed-price nature of the contract incentivizes the contractor to manage costs and schedules effectively to avoid financial penalties. The limited competition aspect might be mitigated by the government's ongoing market research and potential future solicitations to encourage broader participation.
What is the historical spending pattern for the Modular Artillery Charge System (MACS) projectiles?
Historical spending data for the MACS program, specifically for the M231 and M232A2 projectiles, would reveal trends in procurement volume and cost over time. Without access to specific historical contract awards for these exact items, a precise analysis is difficult. However, general trends in defense spending on artillery and munitions often correlate with operational tempo, geopolitical events, and modernization efforts. If this contract represents a new production run or an increase in demand, it could indicate a shift in Army requirements or a replenishment of stocks. Analyzing past contracts for similar ammunition types from the Department of the Army would provide context on typical spending levels and fluctuations.
How does the duration of this contract (1791 days) align with typical procurement cycles for ammunition?
A contract duration of approximately 1791 days (nearly five years) for the production and delivery of ammunition like the MACS projectiles is relatively standard for large-scale, multi-year procurements. Such durations are necessary to ensure a consistent supply of critical munitions, allow for efficient production planning and scaling by the contractor, and provide cost stability. Shorter durations might lead to frequent re-competition, potentially disrupting supply chains and increasing administrative overhead. Longer durations, however, require careful monitoring to ensure continued value and responsiveness to evolving military needs. This duration suggests a sustained, predictable requirement for these specific projectiles.
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: $160,915,752
Exercised Options: $160,915,752
Current Obligation: $160,915,752
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: 2025-09-04
Current End Date: 2030-07-31
Potential End Date: 2030-07-31 12:07:00
Last Modified: 2025-09-04
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