DoD Awards $98M for Hydra 70 Rockets and Motors to General Dynamics-OTS
Contract Overview
Contract Amount: $98,189,009 ($98.2M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-07-27
End Date: 2026-06-30
Contract Duration: 1,069 days
Daily Burn Rate: $91.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: THIS DELIVERY ORDER IS ISSUED IN SUPPORT OF HYDRA 70 ROCKETS AND MOTORS.
Place of Performance
Location: NICEVILLE, OKALOOSA County, FLORIDA, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $98.2 million to GENERAL DYNAMICS-OTS, INC. for work described as: THIS DELIVERY ORDER IS ISSUED IN SUPPORT OF HYDRA 70 ROCKETS AND MOTORS. Key points: 1. Significant award for ammunition manufacturing, supporting Army readiness. 2. General Dynamics-OTS is a key supplier in this niche sector. 3. Potential for cost efficiencies through long-term contract and fixed-price structure. 4. Focus on essential military hardware highlights defense spending priorities.
Value Assessment
Rating: good
The award value of $98.2 million for Hydra 70 rockets and motors appears reasonable given the nature of the equipment and the contract duration. Benchmarking against similar defense procurement contracts for munitions would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process that should have driven price discovery. This method is generally favorable for achieving fair and reasonable pricing.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential defense supplies.
Public Impact
Ensures continued supply of critical rocket systems for military operations. Supports a major defense contractor and its manufacturing capabilities. Contributes to the readiness and operational effectiveness of the U.S. Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if material prices increase significantly.
- Dependence on a single supplier for this specific munition.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract structure limits cost risk.
- Supports critical defense capabilities.
Sector Analysis
This contract falls within the defense sector, specifically ammunition manufacturing. Spending in this area is driven by military readiness requirements and geopolitical factors. Benchmarks are typically set by historical procurement data and current threat assessments.
Small Business Impact
While the prime contractor is General Dynamics-OTS, Inc., the contract does not explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army is responsible for oversight of this delivery order. The firm fixed price contract and defined delivery schedule provide clear accountability metrics.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential supply chain disruptions.
- Long-term contract dependency.
- Inflationary pressures on raw materials.
- Limited visibility into small business participation.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, vt, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $98.2 million to GENERAL DYNAMICS-OTS, INC.. THIS DELIVERY ORDER IS ISSUED IN SUPPORT OF 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 $98.2 million.
What is the period of performance?
Start: 2023-07-27. End: 2026-06-30.
What is the historical cost trend for Hydra 70 rockets and motors, and how does this award compare?
Historical cost data for specific munitions like the Hydra 70 rocket system is often sensitive and not publicly available. However, comparing this $98.2 million award over a ~3-year period to previous procurement cycles, considering inflation and any technological upgrades, would be necessary for a comprehensive value assessment. The firm fixed price nature suggests an attempt to lock in current costs.
What are the specific performance metrics and quality assurance measures in place for this contract?
The contract details do not specify performance metrics or quality assurance measures. Typically, defense contracts include stringent quality control standards and performance requirements related to reliability, accuracy, and shelf-life. The Department of the Army would have established these, likely referencing military specifications and testing protocols to ensure the munitions meet operational needs.
Are there any identified risks associated with the supply chain for the components of the Hydra 70 rockets and motors?
The provided data does not detail supply chain risks. However, for defense munitions, potential risks include reliance on foreign-sourced raw materials, manufacturing capacity constraints, and the availability of specialized components. The long-term nature of the contract might incentivize suppliers to secure their supply chains, but geopolitical events or unforeseen disruptions could still pose a threat.
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: $98,189,009
Exercised Options: $98,189,009
Current Obligation: $98,189,009
Subaward Activity
Number of Subawards: 39
Total Subaward Amount: $40,442,167
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: 2023-07-27
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 12:06:00
Last Modified: 2026-01-15
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