DoD Awards $175M for Hydra Rockets, Boosting Ammunition Supply
Contract Overview
Contract Amount: $175,413,054 ($175.4M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-04-29
End Date: 2025-10-31
Contract Duration: 1,646 days
Daily Burn Rate: $106.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: HYDRA 70 ROCKETS AND MOTORS
Place of Performance
Location: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $175.4 million to GENERAL DYNAMICS-OTS, INC. for work described as: HYDRA 70 ROCKETS AND MOTORS Key points: 1. Significant investment in essential munitions for the Army. 2. Sole awardee General Dynamics-OTS highlights potential market concentration. 3. Long-term contract (2021-2025) suggests sustained demand. 4. Firm Fixed Price contract aims to control costs.
Value Assessment
Rating: good
The contract value of $175.4M for Hydra rockets and motors appears reasonable given the duration and nature of the product. Benchmarking against similar ammunition contracts would provide a more precise assessment, but the firm fixed price structure suggests an effort to secure predictable costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is expected to drive price discovery and ensure fair market value for the ammunition.
Taxpayer Impact: Taxpayer funds are being utilized for critical defense procurement, ensuring the availability of essential weaponry for military operations.
Public Impact
Ensures readiness and operational capability for the U.S. Army. Supports the defense industrial base and associated jobs. Provides critical munitions for training and deployment scenarios.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for sole-source reliance in future procurements if competition dwindles.
Positive Signals
- Awarded under full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Long contract duration ensures supply chain stability.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending benchmarks for this category are highly dependent on geopolitical factors and military readiness requirements, but this award represents a substantial commitment to maintaining munition stockpiles.
Small Business Impact
The data indicates no small business participation in this contract. Efforts should be made in future solicitations to ensure opportunities are accessible to small businesses within the defense supply chain.
Oversight & Accountability
The award was made under full and open competition, suggesting a robust process. However, ongoing monitoring of contract performance and pricing is crucial to ensure continued value and accountability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- No small business participation.
- Potential for single-source dependency in future.
- Long-term contract duration may mask underlying cost inefficiencies.
- Geopolitical factors could impact demand and pricing.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, vt, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $175.4 million to GENERAL DYNAMICS-OTS, INC.. HYDRA 70 ROCKETS AND MOTORS
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 $175.4 million.
What is the period of performance?
Start: 2021-04-29. End: 2025-10-31.
What is the historical cost trend for Hydra rockets and motors, and how does this award compare?
Analyzing historical contract data for Hydra rockets and motors would reveal if the current award represents an increase or decrease in per-unit cost over time. Factors such as inflation, raw material prices, and manufacturing efficiencies influence these trends. Comparing this award to previous contracts can indicate whether the firm fixed price is competitive and reflects market conditions or if there are potential cost escalations to monitor.
What are the specific risks associated with relying on General Dynamics-OTS for this critical munition?
The primary risk is the potential for over-reliance on a single supplier, which could lead to price increases or supply disruptions if the contractor faces production issues. While awarded competitively, future procurements might see reduced competition. Diversifying the supplier base or exploring alternative munitions could mitigate these risks and ensure long-term supply chain resilience for the Department of Defense.
How effectively does this contract support the Army's long-term strategic goals for munitions readiness?
This contract directly supports the Army's strategic goals by ensuring a consistent supply of Hydra rockets and motors through October 2025. The substantial award value indicates a significant commitment to maintaining adequate stockpiles for training and operational needs. Continued monitoring of delivery schedules and performance will be key to assessing its long-term effectiveness in bolstering overall munitions readiness.
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: $175,413,054
Exercised Options: $175,413,054
Current Obligation: $175,413,054
Subaward Activity
Number of Subawards: 78
Total Subaward Amount: $85,610,266
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: 2021-04-29
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 12:10:00
Last Modified: 2025-04-25
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