DoD Awards $91M for 155mm Ammunition Manufacturing and Assembly to General Dynamics-OTS
Contract Overview
Contract Amount: $91,124,623 ($91.1M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-23
End Date: 2028-11-30
Contract Duration: 1,164 days
Daily Burn Rate: $78.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: DELIVERY ORDER W15QKN25F0399 IS FOR THE MANUFACTURE, ASSEMBLY, INSPECTION, PACKAGE, AND DELIVERY OF THE 155MM M1128 LOAD, ASSEMBLE, AND PACK.
Place of Performance
Location: HAMPTON, CALHOUN County, ARKANSAS, 71744
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $91.1 million to GENERAL DYNAMICS-OTS, INC. for work described as: DELIVERY ORDER W15QKN25F0399 IS FOR THE MANUFACTURE, ASSEMBLY, INSPECTION, PACKAGE, AND DELIVERY OF THE 155MM M1128 LOAD, ASSEMBLE, AND PACK. Key points: 1. Significant contract for essential military ammunition. 2. Sole-source award raises questions about price discovery. 3. Long-term contract (2028) with substantial value. 4. Focus on manufacturing and assembly capabilities.
Value Assessment
Rating: questionable
The contract value of $91.1M for ammunition manufacturing and assembly is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to potential market rates for similar large-scale production contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to General Dynamics-OTS, Inc. This limits price discovery and may result in a higher cost to taxpayers than if multiple vendors had competed.
Taxpayer Impact: The lack of competition for this large contract could lead to inflated prices, impacting taxpayer funds negatively.
Public Impact
Ensures supply of critical 155mm ammunition for military operations. Supports a major defense contractor and its manufacturing facilities. Potential for increased defense readiness through sustained production.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Long contract duration
- Sole-source award
Positive Signals
- Ensures critical supply
- Supports domestic manufacturing
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending benchmarks for such large-scale, sole-source defense contracts are often difficult to establish due to unique requirements and limited market visibility.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. As a large sole-source award, it is unlikely to directly benefit small businesses unless they are subcontractors to the prime.
Oversight & Accountability
Oversight will be crucial to ensure General Dynamics-OTS meets production quotas and quality standards. The lack of competition necessitates robust monitoring by the Department of the Army to mitigate potential cost overruns and ensure value for money.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price competition.
- Long contract duration may not reflect evolving needs.
- Potential for cost overruns without competitive pressure.
- Lack of transparency in pricing justification.
- No clear small business participation noted.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ar, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.1 million to GENERAL DYNAMICS-OTS, INC.. DELIVERY ORDER W15QKN25F0399 IS FOR THE MANUFACTURE, ASSEMBLY, INSPECTION, PACKAGE, AND DELIVERY OF THE 155MM M1128 LOAD, ASSEMBLE, AND PACK.
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 $91.1 million.
What is the period of performance?
Start: 2025-09-23. End: 2028-11-30.
What is the justification for the sole-source award, and what steps are being taken to ensure fair pricing?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of viable alternatives. For this contract, the Department of the Army should have a documented rationale. To ensure fair pricing, they may rely on historical pricing data, independent cost estimates, or negotiation strategies to achieve a reasonable price despite the absence of competition.
What are the potential risks associated with a sole-source contract of this magnitude and duration?
The primary risks include paying a premium due to lack of competition, potential for complacency from the contractor leading to reduced efficiency or quality, and the inability to leverage market innovations or better pricing from other potential suppliers. The long duration also ties up significant funds and limits flexibility if military needs change.
How will the effectiveness of this contract be measured beyond simple delivery, considering the sole-source nature?
Effectiveness will be measured by adherence to strict quality control standards, on-time delivery schedules, and meeting the specified technical requirements for the 155mm M1128 Load, Assemble, and Pack. Performance metrics should be clearly defined in the contract, and the Department of the Army must actively monitor contractor performance to ensure mission objectives are met.
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: $91,124,623
Exercised Options: $91,124,623
Current Obligation: $91,124,623
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: 2025-09-23
Current End Date: 2028-11-30
Potential End Date: 2028-11-30 12:11:00
Last Modified: 2025-09-23
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