DoD awards $131.6M contract for 242,504 artillery projectiles to General Dynamics-OTS
Contract Overview
Contract Amount: $131,643,296 ($131.6M)
Contractor: General Dynamics-Ots, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-09-18
End Date: 2028-01-31
Contract Duration: 865 days
Daily Burn Rate: $152.2K/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 W519TC25F0358 IS FOR THE CONTRACTOR TO LOAD, ASSEMBLE, AND PACK A QUANTITY OF 242,504 155MM M795 TNT PROJECTILES.
Place of Performance
Location: HAMPTON, CALHOUN County, ARKANSAS, 71744
State: Arkansas Government Spending
Plain-Language Summary
Department of Defense obligated $131.6 million to GENERAL DYNAMICS-OTS, INC. for work described as: ORDER W519TC25F0358 IS FOR THE CONTRACTOR TO LOAD, ASSEMBLE, AND PACK A QUANTITY OF 242,504 155MM M795 TNT PROJECTILES. Key points: 1. Contract focuses on the assembly and packing of 155mm M795 TNT projectiles. 2. The fixed-price contract includes economic price adjustment, potentially increasing the final cost. 3. Competition was conducted under 'full and open competition after exclusion of sources,' suggesting a specific justification for source selection. 4. The contract duration spans over three years, indicating a sustained demand for these munitions. 5. The award is a delivery order against an existing contract, suggesting a pre-established relationship and procurement vehicle. 6. The contractor, General Dynamics-OTS, Inc., is a significant player in the defense manufacturing sector.
Value Assessment
Rating: good
The contract value of $131.6 million for 242,504 artillery projectiles equates to approximately $543 per unit. Benchmarking this against historical data for similar munitions is crucial. Given the fixed-price with economic price adjustment structure, the final cost could fluctuate. However, the scale of the order suggests potential for economies of scale in production and assembly.
Cost Per Unit: Approximately $543 per unit (242,504 projectiles at $131,643,296.40).
Competition Analysis
Competition Level: limited
The contract was awarded under 'full and open competition after exclusion of sources.' This specific procurement method implies that while the competition was intended to be open, certain sources were excluded, likely due to specific technical requirements, existing contracts, or national security considerations. The number of bidders is not specified, but the exclusion of sources may limit the breadth of competition compared to a truly unrestricted full and open process.
Taxpayer Impact: The exclusion of sources, even in an otherwise open competition, could potentially limit price discovery and may result in a higher cost to taxpayers if fewer competitive bids were received than would have been under a completely unrestricted process.
Public Impact
This contract directly supports the Department of the Army's munitions readiness and operational capabilities. The delivery of 242,504 artillery projectiles ensures the availability of critical ordnance for military operations. The contract's execution is expected to involve manufacturing and logistics activities, potentially impacting the defense industrial base. The projectiles are essential for artillery systems used in various combat and training scenarios.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Economic price adjustment clause introduces cost uncertainty.
- Limited competition due to exclusion of sources may impact final price.
- Long contract duration could be subject to evolving geopolitical or technological changes.
Positive Signals
- Award to a known defense contractor with established production capabilities.
- Large quantity order suggests potential for cost efficiencies.
- Delivery order against an existing contract indicates a streamlined procurement process.
Sector Analysis
This contract falls within the Ammunition (except Small Arms) Manufacturing sector, a critical component of the defense industrial base. The market for artillery munitions is largely dominated by a few major defense contractors due to specialized manufacturing requirements and high barriers to entry. Spending in this sector is often driven by geopolitical tensions, modernization programs, and sustainment of existing weapon systems. The total market size for defense munitions is substantial, with significant government investment annually.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, General Dynamics-OTS, Inc., may engage small businesses as subcontractors for various components or services, contributing to the broader small business ecosystem within the defense supply chain.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting command and the Department of Defense's Inspector General. Mechanisms likely include regular performance reviews, audits, and compliance checks to ensure adherence to contract terms, quality standards, and delivery schedules. Transparency is facilitated through contract award databases, though specific details of performance may be restricted.
Related Government Programs
- Department of Defense Ammunition Procurement
- 155mm Artillery Shell Production
- General Dynamics Defense Contracts
- Fixed-Price with Economic Price Adjustment Contracts
Risk Flags
- Potential for cost overruns due to Economic Price Adjustment clause.
- Limited competition may impact overall value for money.
- Dependence on a single contractor for a large quantity of critical munitions.
Tags
defense, department-of-the-army, ammunition, artillery-projectiles, general-dynamics-ots, fixed-price-with-economic-price-adjustment, delivery-order, full-and-open-competition, manufacturing, arkansas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $131.6 million to GENERAL DYNAMICS-OTS, INC.. ORDER W519TC25F0358 IS FOR THE CONTRACTOR TO LOAD, ASSEMBLE, AND PACK A QUANTITY OF 242,504 155MM M795 TNT 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 $131.6 million.
What is the period of performance?
Start: 2025-09-18. End: 2028-01-31.
What is the historical performance of General Dynamics-OTS, Inc. on similar ammunition contracts with the Department of Defense?
General Dynamics-OTS, Inc. (GD-OTS) has a significant track record in supplying munitions to the U.S. military. They are a primary producer of various artillery shells, including 155mm projectiles. Historical data often shows GD-OTS as a key contractor in large-scale ammunition awards. Performance can be assessed through contract close-out reports, past performance evaluations within federal procurement systems (like CPARS), and any documented instances of contract disputes or terminations. While specific details of past performance on similar contracts are not provided in this data, GD-OTS's consistent role in supplying munitions suggests a generally reliable performance history, though like any large contractor, they may have faced challenges on specific programs.
How does the per-unit cost of $543 for these M795 projectiles compare to previous awards or market benchmarks?
The per-unit cost of approximately $543 for the 155mm M795 TNT projectiles is a key metric for value assessment. To benchmark this effectively, one would need to compare it against: 1) Previous awards for the same M795 projectile by the DoD, noting any inflation adjustments or changes in contract terms (e.g., fixed-price vs. cost-plus). 2) Awards for similar 155mm projectiles from other manufacturers or for different fill types (e.g., HE, smoke, illumination). 3) Market research reports or industry analyses that provide average manufacturing costs or target prices for such munitions. Without direct comparative data, it's difficult to definitively state if $543 is high or low. However, the 'economic price adjustment' clause suggests that the base price might be set with an expectation of cost increases, making the final price potentially higher.
What are the specific reasons for 'exclusion of sources' in this 'full and open competition' award?
The designation 'full and open competition after exclusion of sources' indicates that the solicitation was publicly advertised, but specific potential offerors were intentionally excluded from bidding. Common reasons for such exclusions include: 1) Unique technical requirements that only a limited number of contractors can meet. 2) National security concerns or classified program requirements. 3) The need to leverage existing infrastructure, specialized tooling, or intellectual property held by specific entities. 4) A requirement to use specific government-furnished equipment or materials that are only compatible with certain manufacturers' processes. The specific justification for excluding sources in this particular award for M795 projectiles would be detailed in the contract's Justification and Approval (J&A) document, which is typically available upon request through official channels.
What is the strategic importance of the M795 TNT projectile, and how does this contract contribute to DoD readiness?
The M795 projectile is a standard 155mm High Explosive (HE) projectile filled with TNT, widely used by U.S. Army and Marine Corps artillery systems, such as the M109 Paladin and M777 howitzer. It is a workhorse munition for indirect fire support, capable of engaging a wide range of targets including personnel, light armored vehicles, and fortified positions. Ensuring a robust supply of M795 projectiles is critical for maintaining combat readiness, supporting training exercises, and replenishing stocks for potential large-scale conflicts. This contract for over 242,000 units directly addresses the DoD's need to sustain and potentially increase its inventory of this essential munition, ensuring that artillery units have the necessary firepower available when needed.
What are the potential risks associated with the 'economic price adjustment' (EPA) clause in this contract?
The 'economic price adjustment' (EPA) clause in this fixed-price contract allows for adjustments to the contract price based on fluctuations in specified economic factors, typically related to labor and material costs. The primary risk for the government is cost escalation. If the costs of raw materials (like TNT precursors, metal components) or labor increase significantly during the contract period (2025-2028), the total contract value could exceed the initial $131.6 million award. This uncertainty makes precise budget forecasting more challenging. For the contractor, the risk is mitigated, as they are protected against unforeseen cost increases. The specific formula and indices used for the EPA are critical to managing this risk and would be detailed in the contract's terms and conditions.
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: $131,643,296
Exercised Options: $131,643,296
Current Obligation: $131,643,296
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: 2025-09-18
Current End Date: 2028-01-31
Potential End Date: 2028-01-31 00:00:00
Last Modified: 2025-12-16
More Contracts from General Dynamics-Ots, Inc.
- FY 10 Requirements for Family of Munitions - Hydra-70 2.75-Inch Rocket System — $1.1B (Department of Defense)
- Procurement of FY 14-18 Hydra-70 Rocket System. This Requirement Includes Rockets, Warheads, Motors and Containers, Which Will BE Produced IAW a Government-Provided TDP — $815.7M (Department of Defense)
- Procurement of Active Protection Systems and CLS Support for the Bradley Fighting Vehicle — $383.5M (Department of Defense)
- Vehicle SET (P/N 13004403) — $347.8M (Department of Defense)
- 200602!700012!1700!m67854!commanding General !M6785406D7004 !A!N! !N!0001 ! !20051107!20060530!003567125!003567125!001381284!n!general Dynamics Armament and !128 Lakeside AVE !burlington !vt!05401!10675!007!50!burlington !chittenden !vermont !+000073387414!n!n!000000000000!5810!communications Security Equip and Comps !A7 !electronics and Communication Equip !000 !NOT Discernable !334220!E! !5!B!S! ! !D!20060530!B! ! !n!a!a!u!j!2!002!n!2a!z!n!z! ! !Y!C!N! ! ! !z!a!a!a!000!a!b!n! ! ! ! !1727!M67854!0001! ! — $320.5M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)