Department of the Army awards $214.8M contract for Hydra rockets and engineering services to General Dynamics-OTS
Contract Overview
Contract Amount: $214,771,227 ($214.8M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-29
End Date: 2025-12-31
Contract Duration: 2,042 days
Daily Burn Rate: $105.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HYDRA ROCKETS, MOTORS, AND ENGINEERING SERVICES
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $214.8 million to GENERAL DYNAMICS-OTS, INC. for work described as: HYDRA ROCKETS, MOTORS, AND ENGINEERING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 2000 days indicates a long-term need for these specialized munitions and services. 3. Fixed-price contract type generally shifts cost risk to the contractor. 4. The North American Industry Classification System (NAICS) code 332993 points to a manufacturing-heavy component of the award. 5. The award is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle. 6. The absence of small business set-aside flags indicates the primary award was not specifically targeted to small businesses.
Value Assessment
Rating: good
Benchmarking the value of this contract requires access to comparable contracts for similar rocket systems and engineering support. However, the fixed-price nature of the award is a positive indicator for cost control. The significant dollar amount suggests a substantial requirement, and the competition level (full and open) should have driven a competitive price. Further analysis would involve comparing the per-unit cost of the rockets and the hourly rates for engineering services against industry standards and historical data for similar defense procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This typically involves a robust solicitation process designed to maximize the number of potential offerors. The specific number of bidders is not provided, but the designation suggests a competitive environment was sought, which is generally favorable for price discovery and innovation.
Taxpayer Impact: A full and open competition process is intended to secure the best value for taxpayers by fostering a competitive environment that drives down prices and encourages high-quality offerings.
Public Impact
The primary beneficiaries are the Department of the Army and its operational forces, who will receive critical munitions and engineering support. The contract ensures the continued availability of Hydra rockets, essential for various military applications. Engineering services will support the sustainment, potential upgrades, or development related to these rocket systems. The geographic impact is primarily within the United States, where the contractor operates and where the munitions will likely be deployed. Workforce implications include employment opportunities at General Dynamics-OTS, Inc. and its potential subcontractors, particularly in manufacturing and engineering roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if engineering services are not tightly managed.
- Supply chain disruptions for specialized components could impact delivery timelines.
- Long-term sustainment costs for rocket systems can be significant.
- Dependence on a single contractor for critical munitions could pose a strategic risk if not managed with contingency planning.
Positive Signals
- Awarded through full and open competition, indicating a competitive pricing environment.
- Fixed-price contract type shifts cost risk to the contractor.
- Long contract duration suggests a stable, predictable supply of essential munitions.
- General Dynamics-OTS, Inc. is an established defense contractor with relevant experience.
- Delivery order structure may offer flexibility in managing phased delivery and funding.
Sector Analysis
This contract falls within the Defense Industrial Base sector, specifically focusing on the manufacturing of ammunition and related engineering services. The market for military munitions is characterized by long-term government contracts, high barriers to entry due to specialized technology and stringent quality requirements, and significant R&D investment. Spending in this sub-sector is driven by geopolitical factors, modernization efforts, and operational readiness requirements. Comparable spending benchmarks would involve analyzing other large-scale contracts for missile and rocket systems awarded by the Department of Defense.
Small Business Impact
The data indicates that this contract was not awarded as a small business set-aside (ss: false, sb: false). This suggests that the primary contract vehicle was not specifically reserved for small businesses. While the prime contractor, General Dynamics-OTS, Inc., is a large entity, there may be opportunities for small businesses to participate as subcontractors, particularly in specialized manufacturing processes or component supply. The extent of small business subcontracting would need to be assessed through contract compliance reports.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices. Accountability measures are embedded within the fixed-price contract terms, requiring delivery of specified goods and services. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.
Related Government Programs
- Department of Defense Ammunition Procurement
- Army Aviation Support Contracts
- Missile and Rocket System Manufacturing
- Defense Logistics Agency (DLA) Munitions Support
- Tactical Vehicle Support Contracts
Risk Flags
- Long contract duration may increase exposure to economic fluctuations.
- Dependence on specific manufacturing capabilities could be a bottleneck.
- Potential for scope creep in engineering services if not tightly managed.
Tags
defense, department-of-defense, department-of-the-army, ammunition-manufacturing, rocket-systems, engineering-services, firm-fixed-price, full-and-open-competition, delivery-order, large-business, usa, vermont
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $214.8 million to GENERAL DYNAMICS-OTS, INC.. HYDRA ROCKETS, MOTORS, AND ENGINEERING SERVICES
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 $214.8 million.
What is the period of performance?
Start: 2020-05-29. End: 2025-12-31.
What is the historical spending pattern for Hydra rockets and related engineering services by the Department of the Army?
Analyzing historical spending requires accessing contract databases over several fiscal years. Prior to this $214.8 million award, the Department of the Army likely engaged in multiple contracts, potentially including IDIQs or individual delivery orders, for Hydra rockets and associated engineering services. Spending patterns are influenced by operational tempo, inventory levels, and modernization programs. Significant increases or decreases in spending could indicate shifts in strategic priorities, budget allocations, or the introduction of new technologies. Without specific historical data, it's difficult to pinpoint exact trends, but consistent procurement suggests an enduring operational requirement for this munition type.
How does the unit cost of Hydra rockets under this contract compare to similar munitions or previous contracts?
A precise unit cost comparison is not possible without knowing the exact quantity of rockets procured under this $214.8 million award and the breakdown of costs between rockets and engineering services. However, the 'full and open competition' and 'firm fixed price' contract type suggest that pricing should be competitive. To benchmark, one would need to identify comparable munitions (e.g., other unguided rockets of similar caliber and range) and compare their unit costs from recently awarded contracts. Additionally, comparing the per-unit cost to historical data for Hydra rockets from the same or similar contractors could reveal trends in price efficiency or inflation. The absence of this specific data prevents a definitive comparison.
What are the key performance indicators (KPIs) and quality assurance measures for this contract?
Key performance indicators for a contract involving munitions manufacturing and engineering services typically include on-time delivery rates, defect rates (quality of manufactured components), adherence to technical specifications, and successful completion of engineering milestones. Quality assurance measures would involve rigorous testing and inspection protocols by both the contractor (General Dynamics-OTS, Inc.) and the government (Department of the Army). This could include source inspections, acceptance testing of finished products, and audits of the contractor's quality management system. Specific KPIs and QA procedures are usually detailed within the contract's Statement of Work (SOW) and associated clauses.
What is the track record of General Dynamics-OTS, Inc. in fulfilling similar defense contracts?
General Dynamics-OTS, Inc. (now part of General Dynamics Ordnance and Tactical Systems) has a long-standing history of producing munitions and related components for the U.S. military and international allies. They are known for manufacturing a wide range of ordnance, including rockets, mortar rounds, and artillery shells. Their track record typically involves fulfilling large-scale, complex contracts under demanding specifications. Performance reviews and past performance evaluations, often available through government contract databases or agency reports, would provide specific insights into their reliability, quality, and adherence to schedule on previous, similar procurements.
What are the potential risks associated with the long duration (2042 days) of this contract?
The extended duration of 2042 days (approximately 5.6 years) presents several potential risks. Firstly, there's the risk of technological obsolescence; while Hydra rockets are a mature system, advancements in counter-measures or alternative munitions could emerge. Secondly, economic risks, such as inflation or fluctuations in raw material costs, could impact the contractor's profitability if not adequately addressed in the contract's pricing structure. Thirdly, geopolitical shifts could alter demand or deployment strategies for these munitions. Finally, maintaining consistent quality and performance over such a long period requires robust contractor oversight and proactive risk management from the Army.
How does this contract align with current U.S. Army modernization priorities?
The procurement of Hydra rockets and associated engineering services likely aligns with the Army's need for readily available, cost-effective indirect fire support and close air support capabilities. While the Army is investing heavily in next-generation systems, mature and reliable platforms like those utilizing Hydra rockets often remain critical components of the force structure, especially for widespread deployment and training. Engineering services could support sustainment, upgrades to existing systems, or integration with newer platforms, ensuring the continued relevance and effectiveness of this munition family within the evolving battlefield.
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
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: General Dynamics Corp
Address: 326 IBM ROAD BUILDING 862, WILLISTON, VT, 05495
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: $214,771,227
Exercised Options: $214,771,227
Current Obligation: $214,771,227
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $90,083,268
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W31P4Q20D0023
IDV Type: IDC
Timeline
Start Date: 2020-05-29
Current End Date: 2025-12-31
Potential End Date: 2025-12-31 12:12:00
Last Modified: 2025-07-29
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