Army awards $62.4M contract for ammunition to General Dynamics, facing limited competition
Contract Overview
Contract Amount: $62,410,063 ($62.4M)
Contractor: General Dynamics Ordnance & Tactical Systems, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-04-28
End Date: 2007-10-31
Contract Duration: 1,281 days
Daily Burn Rate: $48.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200407!001038!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0044 !A!N! !N! ! !20040428!20040531!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILLIAMSON !ILLINOIS !+000015747262!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !99990909!B! ! !A! !A!Y!J!2!002!N!1A!A!N!A! ! !N!C!N! ! ! !B!B!A!A!000!A!C!Y! ! ! ! ! ! !0001! !
Place of Performance
Location: MARION, WILLIAMSON County, ILLINOIS, 62959
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $62.4 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC. for work described as: 200407!001038!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0044 !A!N! !N! ! !20040428!20040531!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILL… Key points: 1. Contract awarded for ammunition, a critical defense component. 2. General Dynamics secured the award, indicating potential market concentration. 3. Limited competition raises questions about price discovery and value for taxpayers. 4. The sector is defense manufacturing, with significant government reliance.
Value Assessment
Rating: fair
The contract value of $62.4 million for ammunition appears reasonable given the duration and scope. However, without specific unit cost data or benchmarks for similar ammunition contracts, a precise value assessment is difficult.
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 number of bidders. This method can restrict price discovery and potentially lead to higher costs compared to broader competition.
Taxpayer Impact: The limited competition may result in a less optimal price for taxpayers, as alternative, potentially lower-cost suppliers were not fully considered.
Public Impact
Ensures supply of essential ammunition for military operations. Supports a key defense contractor and its workforce. Potential for increased costs due to limited competitive bidding. Highlights the importance of robust competition in defense procurement.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Potential for price inflation
- Lack of transparency in source exclusion
Positive Signals
- Ensures critical supply chain
- Supports established defense industrial base
Sector Analysis
This contract falls within the defense manufacturing sector, specifically focusing on ammunition production. Spending in this area is driven by military readiness requirements and can be subject to long-term strategic planning.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract. The award to a large prime contractor like General Dynamics suggests limited direct opportunities for small businesses on this specific procurement.
Oversight & Accountability
The contract type is Firm Fixed Price, which places cost risk on the contractor. Oversight would focus on contract performance, delivery schedules, and adherence to specifications to ensure taxpayer value.
Related Government Programs
- Ammunition (except Small Arms) Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Limited competition
- Potential for higher costs
- Lack of small business participation
- Dependency on a single large contractor
Tags
ammunition-except-small-arms-manufacturi, department-of-defense, il, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.4 million to GENERAL DYNAMICS ORDNANCE & TACTICAL SYSTEMS, INC.. 200407!001038!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !W52P1J04C0044 !A!N! !N! ! !20040428!20040531!006317473!194860813!001381284!N!GENERAL DYNAMICS, ORDNANCE AND!8820 ROUTE 148 !MARION !IL!62959!46916!199!17!MARION !WILLIAMSON !ILLINOIS !+000015747262!N!N!000000000000!1305!AMMUNITION, THROUGH 30 MM !A6 !AMMUNITION !000 !* !332993!E! !3! ! ! ! ! !999
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 $62.4 million.
What is the period of performance?
Start: 2004-04-28. End: 2007-10-31.
What was the justification for excluding other sources in the competition?
The justification for excluding other sources is crucial for understanding the competitive landscape. Without this information, it's difficult to assess if the limited competition was warranted due to specialized capabilities or if it was an administrative decision that inadvertently restricted bidding, potentially impacting overall value and innovation.
How does the unit cost of this ammunition compare to similar contracts awarded under full and open competition?
Comparing the unit cost of this ammunition to similar contracts awarded under full and open competition is essential for evaluating value. If this contract's unit costs are significantly higher, it would indicate that the limited competition resulted in a less favorable price for the government and taxpayers, warranting further investigation into the procurement process.
What is the long-term strategic impact of awarding ammunition contracts with limited competition?
Awarding ammunition contracts with limited competition can have significant long-term strategic impacts. It may stifle innovation by reducing the incentive for new entrants, potentially lead to supply chain vulnerabilities if the sole source faces disruptions, and establish a precedent that could further consolidate the market, ultimately affecting national security readiness and cost-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
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: General Dynamics Corp (UEI: 001381284)
Address: 8820 ROUTE 148, MARION, IL, 12
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2004-04-28
Current End Date: 2007-10-31
Potential End Date: 2007-10-31 00:00:00
Last Modified: 2010-11-19
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