DoD Awards $74.3M for Guided Missile and Space Vehicles to Dynetics, Inc
Contract Overview
Contract Amount: $74,335,541 ($74.3M)
Contractor: Dynetics, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-04-25
End Date: 2026-09-17
Contract Duration: 510 days
Daily Burn Rate: $145.8K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: USFK DO
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $74.3 million to DYNETICS, INC. for work described as: USFK DO Key points: 1. Significant award for specialized manufacturing in the defense sector. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for high-value technology development and production. 4. Focus on missile and space vehicle manufacturing indicates critical national security needs.
Value Assessment
Rating: fair
The award value of $74.3M is substantial. Without comparable contracts or detailed cost breakdowns, assessing its pricing against similar guided missile and space vehicle manufacturing efforts is difficult. Benchmarking is needed to determine if the price is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no competitive pressure to drive down prices.
Taxpayer Impact: The lack of competition in this sole-source award may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Ensures continued production of critical missile and space vehicle components. Supports advanced manufacturing capabilities within the defense industrial base. Potential for technological advancements in guided missile systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Sole-source award
- High contract value
Positive Signals
- Critical defense capability
- Potential for technological advancement
Sector Analysis
This contract falls within the Guided Missile and Space Vehicle Manufacturing sector, a critical area for national defense. Spending in this niche sector is often characterized by high R&D costs and specialized production requirements, with limited numbers of qualified contractors.
Small Business Impact
The awardee, Dynetics, Inc., is not indicated as a small business. There is no information provided on subcontracting opportunities for small businesses on this contract.
Oversight & Accountability
Oversight will be crucial to ensure the contractor meets performance requirements and that costs are managed effectively, especially given the sole-source nature of the award. The Department of the Army is responsible for this oversight.
Related Government Programs
- Guided Missile and Space Vehicle Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for cost overruns without competitive pressure.
- Lack of transparency in price determination.
- Dependence on a single contractor for critical components.
Tags
guided-missile-and-space-vehicle-manufac, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $74.3 million to DYNETICS, INC.. USFK DO
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 $74.3 million.
What is the period of performance?
Start: 2025-04-25. End: 2026-09-17.
What is the justification for the sole-source award, and how was the price determined to be fair and reasonable?
The justification for a sole-source award typically stems from unique capabilities, proprietary technology, or urgent needs where only one source can fulfill the requirement. Price reasonableness is usually determined through cost analysis, comparison to historical data, or market research. Further details on the specific justification and pricing methodology are needed for a complete assessment.
What are the potential risks associated with a sole-source contract for advanced missile systems?
Sole-source contracts carry risks such as inflated pricing due to lack of competition, potential for contractor complacency, and limited opportunities for innovation from alternative solutions. For advanced missile systems, these risks could impact program cost, schedule, and the adoption of cutting-edge technologies, potentially affecting national security readiness.
How does this contract contribute to the overall effectiveness of US missile defense capabilities?
This contract directly supports the production of guided missile and space vehicles, which are integral components of US defense strategy. By ensuring the availability of these critical assets, the contract contributes to maintaining and enhancing the nation's missile defense capabilities, thereby bolstering national security and deterrence.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Guided Missile and Space Vehicle Manufacturing
Product/Service Code: GUIDED MISSLES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Pricing Type: FIRM FIXED PRICE (J)
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: $112,246,667
Exercised Options: $112,246,667
Current Obligation: $74,335,541
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $25,677,297
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W31P4Q25D0003
IDV Type: IDC
Timeline
Start Date: 2025-04-25
Current End Date: 2026-09-17
Potential End Date: 2026-09-17 12:09:00
Last Modified: 2025-12-22
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