DoD awards $41.5M contract for mortar propelling charges to General Dynamics

Contract Overview

Contract Amount: $41,488,743 ($41.5M)

Contractor: General Dynamics Ordnance & Tactical Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-17

End Date: 2027-08-31

Contract Duration: 805 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AWARD OF DELIVERY ORDER FOR 60MM, 81MM AND 120MM MORTAR PROPELLING CHARGES.

Place of Performance

Location: MARION, WILLIAMSON County, ILLINOIS, 62959

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $41.5 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: AWARD OF DELIVERY ORDER FOR 60MM, 81MM AND 120MM MORTAR PROPELLING CHARGES. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for ammunition manufacturing, specifically mortar propelling charges. 3. Delivery order awarded for a period of approximately 2 years. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. General Dynamics Ordnance & Tactical Systems, Inc. is the awarded contractor. 6. The contract falls under the Ammunition (except Small Arms) Manufacturing NAICS code. 7. This award represents a portion of broader defense spending on munitions.

Value Assessment

Rating: good

The award amount of $41.5 million for mortar propelling charges appears reasonable given the duration and nature of the supplies. Without specific unit cost data or detailed technical specifications, a direct comparison to similar contracts is challenging. However, the firm fixed price structure suggests the government has negotiated a price that accounts for contractor risk and profit, aiming for value. Benchmarking against historical ammunition procurement would provide further insight into the pricing efficiency of this award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids (no: 2) suggests a moderate level of competition for this specific delivery order. While two bidders is better than one, a higher number of bids typically leads to more aggressive pricing and a wider range of technical solutions, potentially offering greater value to the government.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government is not locked into a single supplier, which can drive up costs over time.

Public Impact

The Department of Defense, specifically the Department of the Army, is the primary beneficiary, receiving essential munitions. The contract delivers critical mortar propelling charges, vital for artillery operations. The geographic impact is primarily within the United States, where the contractor operates and supplies are likely manufactured. Workforce implications include employment at General Dynamics facilities involved in the production of these charges.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited competition if only two bids were received, which could impact long-term pricing.
Reliance on a single contractor for a critical component could pose supply chain risks if not managed proactively.
The firm fixed price contract, while shifting risk, could lead to higher initial costs if the contractor's risk assessment is conservative.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Firm fixed price contract aligns incentives and manages cost uncertainty for the government.
General Dynamics is an established defense contractor with a track record in ordnance production.
The contract supports the readiness and operational capabilities of the U.S. Army.

Sector Analysis

This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. The market for defense munitions is characterized by long-term government contracts, specialized manufacturing capabilities, and significant barriers to entry. Spending in this sector is driven by military readiness requirements, geopolitical factors, and modernization programs. Comparable spending benchmarks would involve analyzing historical procurement data for similar ammunition components by the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless General Dynamics has established subcontracting relationships with small businesses for components or services related to this order.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officers and program managers responsible for ammunition procurement. Accountability measures are embedded in the contract terms, including delivery schedules and quality specifications. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Ammunition Procurement
Army Combat Support Systems
Ordnance Manufacturing Contracts
Tactical Ammunition Production

Risk Flags

Potential for limited competition based on the number of bids received.
Supply chain vulnerability for critical raw materials.
Quality control risks inherent in ammunition manufacturing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.5 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. AWARD OF DELIVERY ORDER FOR 60MM, 81MM AND 120MM MORTAR PROPELLING CHARGES.

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 $41.5 million.

What is the period of performance?

Start: 2025-06-17. End: 2027-08-31.

What is General Dynamics Ordnance & Tactical Systems, Inc.'s track record with the Department of Defense for similar ammunition contracts?

General Dynamics Ordnance & Tactical Systems, Inc. (GD-OTS) is a well-established defense contractor with a significant history of supplying munitions to the U.S. military, including the Department of Defense. They are known for producing a wide range of ordnance, including mortar systems, artillery shells, and related components. Their track record typically involves fulfilling large, complex contracts for various branches of the armed forces. Analyzing their past performance on similar contracts, specifically for mortar propelling charges or related ammunition, would reveal their reliability in terms of on-time delivery, quality adherence, and cost management. Publicly available contract databases often show a history of awards and performance ratings, which can be reviewed to assess their capabilities and past success in meeting DoD requirements.

How does the awarded price compare to historical spending on mortar propelling charges by the Department of the Army?

To compare the awarded price of $41.5 million to historical spending, one would need to access historical procurement data for mortar propelling charges from the Department of the Army. This would involve identifying previous contracts for similar items, noting their award amounts, quantities, contract types, and duration. Factors such as inflation, changes in raw material costs, technological advancements, and evolving military requirements can significantly influence price over time. A direct comparison would require normalizing for these factors, perhaps by looking at the average price per unit or per pound over different periods. If the current award represents a higher or lower cost per unit compared to historical trends, it could indicate changes in market conditions, contractor efficiency, or the government's negotiation leverage.

What are the primary risks associated with this contract and how are they being mitigated?

Primary risks associated with this contract include potential supply chain disruptions for raw materials or components, manufacturing quality issues, and delivery delays. Given that this is a firm fixed price contract, the contractor bears the primary financial risk if costs escalate beyond their estimates. Mitigation strategies employed by the Department of the Army likely include thorough vetting of the contractor's capabilities and financial stability, establishing clear quality assurance protocols and inspection points, and defining strict delivery schedules with potential penalties for non-compliance. The use of a well-established contractor like General Dynamics, which has a proven track record, also serves as a risk mitigation factor. Furthermore, the contract's duration and the nature of the product (standard ammunition components) may reduce some of the inherent risks associated with novel or complex procurements.

What is the expected impact of this contract on the operational readiness of the U.S. Army?

This contract is expected to have a positive impact on the operational readiness of the U.S. Army by ensuring a steady supply of critical mortar propelling charges. Mortars are a vital component of infantry support and indirect fire capabilities, used across various combat scenarios. Having adequate stocks of propelling charges is essential for training exercises and for maintaining the ability to deploy and sustain combat operations. This award helps replenish inventories, support ongoing training needs, and potentially equip units with updated or sufficient ammunition loads. The timely delivery of these charges, as stipulated by the contract, directly contributes to the Army's ability to project power and respond to threats effectively.

How does this award fit into the broader context of U.S. defense spending on ammunition and ordnance?

This $41.5 million award for mortar propelling charges fits into the broader context of substantial U.S. defense spending on ammunition and ordnance, which often runs into billions of dollars annually. Ammunition procurement is a continuous requirement for maintaining military readiness, supporting training, and equipping forces for potential conflicts. Propelling charges are fundamental components for a wide range of artillery and mortar systems. Awards like this, even if individually smaller than major weapon system procurements, are crucial for the sustainment of military operations. They reflect the ongoing investment in the defense industrial base and the commitment to ensuring that U.S. forces have the necessary supplies to operate effectively across diverse operational environments.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $41,488,743

Exercised Options: $41,488,743

Current Obligation: $41,488,743

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $337,985

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W519TC25D0007

IDV Type: IDC

Timeline