DoD Awards $160M for Hydra 70 Rockets and Motors to General Dynamics-OTS
Contract Overview
Contract Amount: $164,279,353 ($164.3M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-05
End Date: 2027-06-30
Contract Duration: 1,028 days
Daily Burn Rate: $159.8K/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: WILLISTON, CHITTENDEN County, VERMONT, 05495
State: Vermont Government Spending
Plain-Language Summary
Department of Defense obligated $164.3 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 operations. 2. General Dynamics-OTS, Inc. is a key supplier in this niche. 3. Potential for cost efficiencies through firm fixed-price contract. 4. Long-term contract duration suggests sustained demand.
Value Assessment
Rating: good
The award value of $159.8 million over approximately 3.4 years appears reasonable for specialized ammunition. Benchmarking against similar large-scale defense contracts for munitions would provide further context on value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is expected to drive price discovery and ensure fair market value for the ammunition.
Taxpayer Impact: The competitive award aims to secure necessary munitions at optimal prices, ensuring taxpayer funds are used efficiently for defense needs.
Public Impact
Ensures continued supply of critical Hydra 70 rockets for military readiness. Supports a major defense contractor and its manufacturing capabilities. Impacts logistics and operational planning for Army aviation units.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for supply chain disruptions impacting delivery timelines.
- Inflationary pressures on raw materials could affect long-term costs.
- Geopolitical events could increase demand and strain production capacity.
Positive Signals
- Firm fixed-price contract provides cost certainty.
- Long-term award supports stable production planning.
- Competition ensures a market-driven price.
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 difficult without specific munition type comparisons.
Small Business Impact
While the prime contractor is a large entity, the contract may indirectly benefit small businesses through subcontracts for raw materials, components, or specialized services within the defense supply chain.
Oversight & Accountability
The Department of the Army's oversight will be crucial in monitoring contract performance, delivery schedules, and quality assurance to ensure the effective use of funds and timely delivery of munitions.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Supply chain vulnerability for critical components.
- Potential for raw material price fluctuations.
- Dependence on a single prime contractor.
- Long-term contract duration increases exposure to market shifts.
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 $164.3 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 $164.3 million.
What is the period of performance?
Start: 2024-09-05. End: 2027-06-30.
What is the historical cost performance of General Dynamics-OTS, Inc. on similar ammunition contracts?
Analyzing General Dynamics-OTS, Inc.'s past performance on comparable ammunition contracts is essential. This includes reviewing their track record for on-time delivery, adherence to budget, and quality control. Past performance data can indicate their reliability and efficiency, providing a basis for assessing the value and risk associated with this new award.
What are the specific risks associated with the supply chain for Hydra 70 rocket components?
The supply chain for Hydra 70 rocket components may face risks related to the availability of specialized raw materials, reliance on a limited number of suppliers for critical parts, and potential geopolitical disruptions affecting international sourcing. Understanding these vulnerabilities is key to mitigating potential delays and cost overruns.
How effectively will this contract support evolving Army aviation mission requirements?
The effectiveness of this contract in supporting evolving Army aviation missions depends on the Hydra 70 rocket's adaptability and the contractor's ability to meet potential future modifications or upgrades. Continuous communication and collaboration between the Army and General Dynamics-OTS will be vital to ensure the munitions remain relevant and capable for current and future operational needs.
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: $164,279,353
Exercised Options: $164,279,353
Current Obligation: $164,279,353
Subaward Activity
Number of Subawards: 46
Total Subaward Amount: $52,073,315
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: 2024-09-05
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 12:06:00
Last Modified: 2025-09-12
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