DoD Awards General Dynamics $165M for 346,678 M795 Projectiles
Contract Overview
Contract Amount: $165,308,119 ($165.3M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-24
End Date: 2026-09-30
Contract Duration: 736 days
Daily Burn Rate: $224.6K/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: ORDER W51TC24F0400 IS FOR THE CONTRACTOR TO LOAD, ASSEMBLE, AND PACK A QUANTITY OF 346,678 155MM M795 TNT LOADED PROJECTILES.
Place of Performance
Location: HAMPTON, CALHOUN County, ARKANSAS, 71744
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $165.3 million to GENERAL DYNAMICS-OTS, INC. for work described as: ORDER W51TC24F0400 IS FOR THE CONTRACTOR TO LOAD, ASSEMBLE, AND PACK A QUANTITY OF 346,678 155MM M795 TNT LOADED PROJECTILES. Key points: 1. Significant award for ammunition manufacturing, highlighting defense sector needs. 2. General Dynamics-OTS, Inc. secured the contract, indicating established supplier relationships. 3. The contract involves loading, assembly, and packing, suggesting complex logistical requirements. 4. Fixed Price with Economic Price Adjustment (FPEPA) contract type introduces potential cost volatility.
Value Assessment
Rating: good
The contract value of $165.3 million for 346,678 projectiles appears reasonable given the complexity of loading, assembly, and packing. Benchmarking against similar ammunition production contracts would provide a more precise assessment.
Cost Per Unit: $476.85
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' suggesting a limited competition scenario. This method may impact price discovery compared to unrestricted full and open competition.
Taxpayer Impact: Taxpayer funds are allocated for essential defense materiel, with potential for price adjustments impacting the final cost.
Public Impact
Ensures supply of critical munitions for military operations. Supports defense industrial base and associated jobs. Potential for cost fluctuations due to economic price adjustment clause. Impacts readiness and strategic capabilities of the armed forces.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment may lead to cost overruns.
- Limited competition could result in suboptimal pricing.
- Dependence on a single contractor for a critical item.
Positive Signals
- Addresses a clear and present defense requirement.
- Contractor has experience in ordnance manufacturing.
- Delivery order structure allows for phased execution.
Sector Analysis
This award falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. Spending in this area is driven by geopolitical factors and military readiness requirements.
Small Business Impact
The contract was awarded to General Dynamics-OTS, Inc., a large business. There is no indication of small business subcontracting participation in the provided data.
Oversight & Accountability
The Department of the Army awarded this delivery order. Oversight would focus on ensuring timely delivery, quality control of the loaded projectiles, and management of the economic price adjustment.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost escalation due to EPA.
- Limited competition may reduce price competitiveness.
- Dependence on a single supplier for critical munitions.
- Safety and quality control risks inherent in ordnance manufacturing.
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 $165.3 million to GENERAL DYNAMICS-OTS, INC.. ORDER W51TC24F0400 IS FOR THE CONTRACTOR TO LOAD, ASSEMBLE, AND PACK A QUANTITY OF 346,678 155MM M795 TNT LOADED PROJECTILES.
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 $165.3 million.
What is the period of performance?
Start: 2024-09-24. End: 2026-09-30.
What is the historical cost performance of General Dynamics-OTS, Inc. on similar ammunition contracts, particularly concerning the economic price adjustment clause?
Analyzing historical data for General Dynamics-OTS, Inc. on contracts with similar economic price adjustment (EPA) clauses is crucial. This would reveal their track record in managing cost fluctuations related to raw materials and labor. Understanding past performance helps predict potential cost overruns and assess the effectiveness of the EPA in balancing contractor risk with taxpayer protection.
How does the 'limited competition' procurement method impact the overall value for money achieved in this $165 million contract?
The 'limited competition after exclusion of sources' method suggests that fewer potential bidders were considered, potentially reducing competitive pressure on pricing. While the selected contractor may be highly qualified, the absence of broader competition could mean the government did not secure the lowest possible price. Further analysis of the justification for excluding other sources is needed to assess value.
What are the specific risks associated with the 'loading, assembly, and packing' of 346,678 M795 projectiles, and how are these mitigated?
Risks in loading, assembly, and packing munitions include safety hazards, quality control failures leading to defective rounds, and logistical challenges. Mitigation strategies likely involve stringent safety protocols, rigorous quality assurance testing at multiple stages, and robust supply chain management. The contract's specifications and the contractor's demonstrated safety and quality management systems are key to assessing risk mitigation effectiveness.
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: $165,308,119
Exercised Options: $165,308,119
Current Obligation: $165,308,119
Subaward Activity
Number of Subawards: 24
Total Subaward Amount: $38,824,574
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: 2024-09-24
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2025-12-16
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