DoD awards $121.5M for 155mm projectile production line in Arkansas
Contract Overview
Contract Amount: $121,512,745 ($121.5M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-02-15
End Date: 2025-09-30
Contract Duration: 958 days
Daily Burn Rate: $126.8K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT
Sector: Defense
Official Description: MINIMUM GUARANTEE FOR THE CONTRACTOR TO STAND UP A 155MM PROJECTILE LOAD, ASSEMBLE, PACK PRODUCTION LINE AT THE CAMDEN, ARKANSAS FACILITY.
Place of Performance
Location: HAMPTON, CALHOUN County, ARKANSAS, 71744
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $121.5 million to GENERAL DYNAMICS-OTS, INC. for work described as: MINIMUM GUARANTEE FOR THE CONTRACTOR TO STAND UP A 155MM PROJECTILE LOAD, ASSEMBLE, PACK PRODUCTION LINE AT THE CAMDEN, ARKANSAS FACILITY. Key points: 1. Contract aims to establish a critical munitions production capability. 2. General Dynamics-OTS, Inc. is the sole awardee. 3. Potential risks include production ramp-up challenges and supply chain disruptions. 4. Spending falls within the Ammunition Manufacturing sector.
Value Assessment
Rating: good
The contract value of $121.5M for establishing a production line appears reasonable given the scope. Benchmarking against similar defense industrial base expansion projects would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' suggesting a limited competition. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: This investment aims to bolster national defense readiness, with taxpayer funds supporting critical manufacturing infrastructure.
Public Impact
Enhances U.S. artillery shell production capacity. Supports domestic manufacturing and job creation in Arkansas. Addresses potential supply chain vulnerabilities for essential munitions. Contributes to military readiness and deterrence.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher costs.
- Reliance on a single contractor for a critical capability.
- Potential delays in production ramp-up.
Positive Signals
- Addresses a critical defense need.
- Invests in domestic industrial base.
- Establishes a new production facility.
Sector Analysis
This contract falls under Ammunition (except Small Arms) Manufacturing. Spending in this sector is driven by defense appropriations and geopolitical events, with significant investments often required for modernization and capacity expansion.
Small Business Impact
The awardee, General Dynamics-OTS, Inc., is a large business. There is no explicit indication of small business subcontracting goals in the provided data, which could be an area for future oversight.
Oversight & Accountability
The contract is a delivery order under a larger agreement, suggesting some level of pre-negotiation and oversight. Monitoring production milestones and cost controls will be crucial for accountability.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Sole awardee for critical capability
- Potential for production delays
- Economic price adjustment clause
- Lack of explicit small business subcontracting information
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, ar, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $121.5 million to GENERAL DYNAMICS-OTS, INC.. MINIMUM GUARANTEE FOR THE CONTRACTOR TO STAND UP A 155MM PROJECTILE LOAD, ASSEMBLE, PACK PRODUCTION LINE AT THE CAMDEN, ARKANSAS FACILITY.
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 $121.5 million.
What is the period of performance?
Start: 2023-02-15. End: 2025-09-30.
What is the projected unit cost for the 155mm projectiles once the production line is operational?
The provided data focuses on the cost to establish the production line, not the ongoing cost per projectile. Detailed cost breakdowns for future production runs would be necessary to determine unit costs. This information is typically found in subsequent delivery orders or contract modifications.
What are the specific risks associated with the 'exclusion of sources' in the competition process?
Excluding sources limits the pool of potential bidders, potentially reducing competitive pressure on pricing and innovation. This approach is usually justified by specific technical requirements, existing infrastructure, or urgent national security needs that only certain contractors can meet.
How will the effectiveness of this production line be measured and verified by the Department of Defense?
Effectiveness will likely be measured by the contractor's ability to meet production targets, quality standards, and delivery schedules. The DoD will likely conduct regular inspections, performance reviews, and potentially independent testing of the produced projectiles.
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 AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 115 HART ST, NICEVILLE, FL, 32578
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: $121,512,745
Exercised Options: $121,512,745
Current Obligation: $121,512,745
Subaward Activity
Number of Subawards: 73
Total Subaward Amount: $85,899,557
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W519TC23D0015
IDV Type: IDC
Timeline
Start Date: 2023-02-15
Current End Date: 2025-09-30
Potential End Date: 2025-09-30 00:00:00
Last Modified: 2025-12-16
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