DoD Awards $280M for 25mm APFSDS-T Cartridges to General Dynamics
Contract Overview
Contract Amount: $280,072,243 ($280.1M)
Contractor: General Dynamics Ordnance & Tactical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-04-29
End Date: 2029-03-31
Contract Duration: 1,797 days
Daily Burn Rate: $155.9K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 25 MILLIMETER (MM) M919 ARMOR PIERCING FIN STABILIZED DISCARDING SABOT WITH TRACER (APFSDS-T) CARTRIDGE
Place of Performance
Location: MARION, WILLIAMSON County, ILLINOIS, 62959
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $280.1 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 25 MILLIMETER (MM) M919 ARMOR PIERCING FIN STABILIZED DISCARDING SABOT WITH TRACER (APFSDS-T) CARTRIDGE Key points: 1. Significant contract value for specialized ammunition. 2. General Dynamics is a major defense contractor. 3. Potential for cost overruns or performance issues. 4. Ammunition manufacturing sector is critical for defense readiness.
Value Assessment
Rating: good
The contract value of $280M for ammunition appears reasonable given the specialized nature and quantity. Benchmarking against similar large-scale ammunition procurements would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The competition was 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may impact price discovery compared to unrestricted full and open competition, potentially leading to higher prices.
Taxpayer Impact: Taxpayer funds are being used for essential military hardware. The limited competition raises questions about achieving the best possible price for this significant expenditure.
Public Impact
Ensures supply of critical ammunition for military operations. Supports a key defense contractor and its manufacturing capabilities. Impacts readiness and effectiveness of armored units. Potential for follow-on contracts based on performance.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Limited competition may result in suboptimal pricing.
- Long contract duration could expose to market volatility.
- Dependence on a single supplier for critical munitions.
Positive Signals
- Addresses a clear and stated defense requirement.
- Contract awarded to an established and experienced provider.
- Firm fixed price contract provides cost certainty.
Sector Analysis
This contract falls within the defense manufacturing sector, specifically ammunition production. Spending benchmarks for similar large-caliber ammunition contracts are typically in the millions to hundreds of millions of dollars, depending on quantity and type.
Small Business Impact
The contract was awarded to General Dynamics Ordnance & Tactical Systems, Inc., a large defense contractor. There is no indication of small business participation in this specific award, which is common for large-scale, specialized defense manufacturing.
Oversight & Accountability
The Department of Defense, specifically the Department of the Army, is responsible for oversight. The contract type (firm fixed price) and delivery order structure provide some level of accountability for performance and cost.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition may lead to higher costs.
- Long-term contract duration (nearly 5 years) increases risk.
- Dependence on a single supplier for critical munitions.
- Potential for supply chain disruptions affecting delivery.
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, il, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $280.1 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 25 MILLIMETER (MM) M919 ARMOR PIERCING FIN STABILIZED DISCARDING SABOT WITH TRACER (APFSDS-T) CARTRIDGE
Who is the contractor on this award?
The obligated recipient is GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, 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 $280.1 million.
What is the period of performance?
Start: 2024-04-29. End: 2029-03-31.
What is the projected unit cost of the 25mm APFSDS-T cartridges, and how does it compare to industry benchmarks for similar munitions?
The total contract value is $280,007,224.50. While the exact number of units is not provided, calculating a rough unit cost requires this information. A thorough analysis would involve comparing this calculated unit cost against publicly available data or industry reports for comparable 25mm APFSDS-T cartridges to assess if the price is competitive and reflects fair market value.
What are the specific justifications for limiting the competition for this critical ammunition procurement, and what steps were taken to ensure fair pricing?
The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' needs detailed examination. Typically, such exclusions are based on factors like unique capabilities, urgent needs, or prior investments. The contracting agency should have conducted market research and price analysis to ensure the negotiated price was fair and reasonable, despite the limited competitive landscape.
How will the performance and reliability of these cartridges be monitored throughout the contract period to ensure effectiveness and taxpayer value?
Performance monitoring will likely involve rigorous testing and quality assurance protocols by the Department of the Army. This includes verifying that the cartridges meet all technical specifications and performance requirements. Regular reviews of delivery schedules and defect reports will be crucial to ensure the ammunition is effective and provides good value for taxpayer investment over the contract's duration.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Wico Limited
Address: 6658 ROUTE 148, MARION, IL, 62959
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: $280,072,243
Exercised Options: $280,072,243
Current Obligation: $280,072,243
Actual Outlays: $6,481,950
Subaward Activity
Number of Subawards: 44
Total Subaward Amount: $59,473,101
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W519TC24D0009
IDV Type: IDC
Timeline
Start Date: 2024-04-29
Current End Date: 2029-03-31
Potential End Date: 2029-03-31 12:03:00
Last Modified: 2026-01-07
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