DoD Awards $195.5M Contract to Dynetics for Missile Vehicle Parts, Sole-Sourced
Contract Overview
Contract Amount: $195,534,590 ($195.5M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-11-21
End Date: 2029-10-31
Contract Duration: 1,805 days
Daily Burn Rate: $108.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CHGB TPS NTE AWARD
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35806
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $195.5 million to DYNETICS, INC. for work described as: CHGB TPS NTE AWARD Key points: 1. Significant award value of $195.5 million for specialized defense components. 2. Sole-source procurement raises questions about competition and potential price inflation. 3. Contract duration of over 5 years suggests a long-term need for these parts. 4. Focus on 'Other Guided Missile and Space Vehicle Parts' indicates a niche but critical sector.
Value Assessment
Rating: questionable
The contract is sole-sourced, making direct pricing comparisons difficult. Without competitive bids, it's challenging to ascertain if the Cost Plus Fixed Fee structure yielded the best possible price for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award to Dynetics, Inc. This limits price discovery and may result in higher costs compared to a competitive process.
Taxpayer Impact: The lack of competition for this substantial contract could lead to taxpayers paying a premium for the required guided missile and space vehicle parts.
Public Impact
Ensures continued supply of critical components for missile and space vehicles. Supports a specific defense manufacturing capability within the US. Potential for cost overruns due to sole-source nature of the award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Long contract duration
Positive Signals
- Supports critical defense manufacturing
- Long-term supply assurance
Sector Analysis
This contract falls within the 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing' sector. Spending in defense manufacturing can vary significantly based on geopolitical factors and technological advancements, but this award represents a substantial investment in a specialized area.
Small Business Impact
The contract was awarded to Dynetics, Inc., and there is no indication of small business subcontracting in the provided data. Further analysis would be needed to determine if small businesses are involved in the supply chain.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure cost reasonableness and adherence to contract terms. The Department of the Army's contracting activity should monitor performance and expenditures closely.
Related Government Programs
- Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source procurement
- Cost-plus contract type
- Lack of transparency in price justification
- Potential for cost overruns
- No clear small business participation
Tags
other-guided-missile-and-space-vehicle-p, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $195.5 million to DYNETICS, INC.. CHGB TPS NTE AWARD
Who is the contractor on this award?
The obligated recipient is DYNETICS, 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 $195.5 million.
What is the period of performance?
Start: 2024-11-21. End: 2029-10-31.
What specific factors justified the sole-source award for these guided missile and space vehicle parts, and were alternative sources considered?
The justification for a sole-source award typically involves unique capabilities, proprietary technology, or urgent needs that only one contractor can meet. Without further details, it's unclear if Dynetics, Inc. possesses such exclusive qualifications or if the Department of the Army's contracting officers determined that soliciting bids would be impractical or not in the government's best interest.
How will the Cost Plus Fixed Fee (CPFF) structure be managed to control costs and ensure value for money, given the absence of competition?
Managing a CPFF contract without competition requires rigorous oversight of Dynetics, Inc.'s costs and performance. The government must establish clear cost accounting standards, conduct regular audits, and set realistic fixed fee targets that incentivize efficiency. Continuous monitoring of the contractor's progress and expenditures is crucial to prevent cost overruns and ensure the final price reflects fair value.
What is the projected impact of this $195.5 million award on the overall defense budget for guided missile and space vehicle components?
This $195.5 million award represents a significant portion of the budget allocated to 'Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing.' Its impact will depend on the total allocated funds for this category and other ongoing contracts. The long duration (over 5 years) suggests a sustained commitment, potentially influencing future budget allocations for similar procurements.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Guided Missile and Space Vehicle Parts and Auxiliary Equipment Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1002 EXPLORER BOULEVARD, HUNTSVILLE, AL, 35806
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: $797,266,018
Exercised Options: $195,534,590
Current Obligation: $195,534,590
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-11-21
Current End Date: 2029-10-31
Potential End Date: 2029-10-31 12:10:00
Last Modified: 2025-09-29
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